Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

Recently I was looking at how some of the small cap stocks have done after their huge rallies, especially those that were up on fluff news or plain momentum.

I see a common pattern in all of them and that is the trade I like to be involved in.

Lets look at some charts

ABIO spikes huge from 2.75 to 9.00 in one day. After that ? Slow and steady death. See how the volume keeps fading.

CDII doubles up in a week from 1.20 to 2.50s. After that ? Check again the drop in volume.

CNLG turns out to be bit tricky. Spikes, then drops, then spikes huge. After that ? Slow and steady death with few small spikes along the way.

ENCO was bit hard nut to crack. Spikes, then drops, then spikes again, and consolidates, and re-spikes and finally cracks.

HMNA spikes on fluff news and momentum takes it higher. Up from 1.00 to 3.50s in no time. After that ? Where have you seen this type of chart before ??

IDN runs up on sector news. Squeezes the early shorts to trend higher from 1.25 to 4.00 with huge volume. After that ? Slow and steady death. No looking back.

IFLG same pattern. Spike, spike and after that, slow and steady death. Volume dies out

PRAN up on old news.  Momentum traders take it higher. Huge volume. Next day ? Any guesses what is expected ?

RDCM spikes, fades, spikes, fades. Tricky bastard, but eventually going where it should be. I was lucky enough to short this one at @5.90, covering today @4.80. Definitely early, but I covered since they report next Monday. Playing it safe.

RPC spikes from 0.25 cents to 2.50. Huge runup. Once the selling starts, where does it go ? More fading expected. Volume fading perfectly.

SSY spikes from 1.50 to 4.50 (3x runup) on health care sector news. Nothing to do with SSY. Huge volume on runup. Once selling starts ? No where but DOWN

TEAR….no need to say anything more…you get the picture

ZANE is a fighter. It was doing exactly as expected. But it decides to spike mid-way. However it was short lived. DOWN she goes…

GS dipped below 150, but bounced back end of day. It put in a doji and might be trend reversal day. Going on long ~151 with stop at 149.50.

ISIS looks ready for more green. Nice spike up on good volume. Long on break above 11.72. Stop below 11.00 support.

KRE looks ready for breakout. Long on break above 25.00 with stop loss at 24.40

MCO got upgraded and broke out of its $28.00 resistance. Long on green action with stop below 28.00

ROL put up an impressive earnings which lead to 8% jump in stock. It is ready to breakout if it takes out 20$ resistance with conviction. Tight stop of 19.70 on it.

SNDK would make a nice long entry on break above 30.00. It couldnt breach above 30.00 today. Lets see if it can do it tomorrow. Stop loss 29.45.

BEE reversed nicely today with decent volume. Long on break above 50 day moving average @1.92. Another good entry would be the break of 2.00

CT had a huge 24% spike. This was actually a good long on break of 2.00. However I was hesitant to go long. Watching for morning action. Long on green, with stop loss below 2.00. Looks very similar to BEE’s chart

NCS has its second green day with good volume. I liked that it closed above 2.00. Will be good entry point on green with stop loss below 2.00

SNV seems to be reversing. Will watch for green, however since its a financial stock with poor record, I hate buying into it.

YRCW had some resistance @4.00. With that taken out, this is a good long trade on green action with stop loss below 4.00.