Month: October 2012

AAPL, PURE, RAD, DRWI & Extended Watchlist

Apple, Inc. AAPL
Apple fared quite well on Wednesday.  The $650 October 20th Calls we mentioned were as low as 7.70, and hit a high of 10.30, making 34% possible in just the first hour of trading.We will continue to monitor these calls heading into earnings, and we feel that there will be multiple opportunities to profit, just as we’ve seen over the past few days.
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Rite Aid Corp. RAD

Everyone should be familiar with a household name like Rite Aid. The stock has been on something of a downtrend for the past month, and seems to be ready to bounce off of oversold territory. A year ago this time, it was trading in the .90-range, and ran as high as 2.12 by mid-March. Now that RAD has returned to a support level, we want to put it on our watchlist, as a longer-term play to follow in the coming months.

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PURE Bioscience PURE

PURE has recently begun an uptrend off of its 52-wk low of .90, which it reached just under a month ago.  As you can see from the included chart, the stock had traded between the 2.00-4.00 range for the majority of this year. Now that we are starting to see a rebound on this stock, we have a positive outlook that the stock will recover and trend upward over the next couple of months.

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Dragonwave, Inc. DRWI

DRWI is another big board play that just hit it’s 2.05 52-wk low on October 1st. Over the past few months, the stock has struggled to get above its 50DMA, currently sitting at 2.33. Provided a break past the resistance at that  level, we could see a nice breakout. That is precisely the reason we are adding DRWI to the watchlist this morning.


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Extended Watchlist:
LNGT, PPHM, PROT, PEIX, BIOF

AAPL, RFMK, PEIX, BIOF & Extended Watchlist

Apple, Inc. AAPL
Apple continued its pullback yesterday and bounced off of 623.55 (just above the 100DMA of 619.39), hitting a high of 640.49.

As you can see from the chart, that 100DMA has come into play quite a few times over the past six months. Those traders savvy enough to catch the dip into the 620’s could have been looking at some nice intraday profits.Thus far premarket, it looks like we may be seeing a gap-up this morning. It seems we were quite accurate in yesterday’s report: “Apple has been undergoing a selloff, and we want to observe carefully for a turnaround…..earnings are due later this month, and with this stock, there is always that tendency to run into earnings reports….”

We are currently monitoring October 20th $650 Calls. Yesterday they were as low as 5.10 before hitting a high of 9.40, and closing out the day at 7.70. You can see why we like to follow these intraday, as Tuesday could have been unbelievably profitable.

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RFMK is another stock we’ve been watching for awhile that offered a opportunity on a dip to low of .0025, only to turn around and close strong at .0034 (HOD). The new support is at .0025, a level we need to ensure that the stock holds moving forward.

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Pacific Ethanol, Inc. PEIX &

BioFuel Energy Corp. BIOF

Both of these ethanol plays have shown us nice gains in the past, and these two tend to trend together, being in the same sector. We felt the time was right to reintroduce these two stocks, as it seems more gains like we’ve seen in the past could be in store presently.

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Extended Watchlist:
LGNT, BCAP, RSH, VRNG

PROT, VRNG, APPL, RSH | Today’s Stocks

Proteonomix, Inc. PROT

PROT had a positive day on Monday, gaining 12.9% on the day, opening at the low of day at .62, and closing at the high of day at .70.

From July to September this stock made a drastic move from .40 all the way up to 2.95. Following that big run, we observed a sharp selloff, and a subsequent gap down. On October 1st the stock was at 1.60, and on the 2nd, it opened at .70. It then retraced to its original support level at .40.

We would now like to see PROT break past the .78-.88 range, because as you can see on the chart above, there is a large gap to fill on up to 1.40, so we really want to pay close attention moving forward so as not to miss that possibility.

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Vringo, Inc.  VRNG

VRNG is another well timed hot stock from our watchlist yesterday that is really performing nicely. Opening at 4.90, and hitting a high of 5.57, made possible gains of 14% during Monday’s session. The high of 5.57 also marks the stock’s 52-week high.

Volume and momentum has steadily been increasing over the past few sessions as the stock has begun to break out. While we enjoy playing a hot hand, it is always important to remember when it’s time to pull the rip-cord and protect our investing dollars. There is certainly always the chance that momentum will subside, and we just want to make sure to prepare our exit strategy in the event that the stock takes a turn for the worse.
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Apple, Inc. APPL

Apple has been undergoing a selloff, and we want to observe carefully for a turnaround. We will be looking to enter some Calls when that happens, as earnings are due later this month, and with this stock, there is always that tendency to run into earnings reports, especially with the new iPhone having just been released.

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RSH is hovering off of its 52-wk lows, a nice chance for a bottom play. We certainly need to keep an eye on Radio Shack.