Day: March 21, 2014

Blue Horseshoe Stocks: Afternoon Updates – 03/21

Petroleo Brasileiro SA Petrobras (PBR)

We regarded the PBR options chain as an area of short term interest this morning, and are happy to report that our focus on the $11 Daily Calls paid instant dividends.

As you can see on the screen capture below, from roughly 10-11am , the Calls we were looking at traded in a range from .34 to .55. That’s an intraday gain of 61%

PBR serves as an excellent reminder of why we sometimes like to delve a little deeper than just the stocks themselves. Options have the ability to provide us with those rapid daytrading opportunities that we covet so highly, as we saw here today. In, fact, as we’re sitting here typing, the $11 Calls hit a new high of .64, pushing our max gains on the session to 88%

Positive ID Corp PSID Update

Just a quick update on one of our recent interests in PSID this afternoon. Following our tracking of this play from .0572 up to.125 (+119%) back in February, the stock consolidated, and has recently been holding support in the .08-.09 range.

As the following chart shows, there is a Golden Cross in the making that has us looking at the possibility of another breakout.

For that and other insight into the PSID chart, check out the following video we prepared:

Blue Horseshoe: PBR, MLCG, MNGA & Extended Watchlist

Petroleo Brasileiro SA Petrobras (PBR)

We spotted this NYSE stock recently as it has bounced off of 10-year lows. PBR is going to be one that we monitor on more of a long-term basis. It has been awhile since we’ve come across a good recovery play, and the conditions on the PBR chart certainly point to the possibility of some nice upside potential.

As we point out on the following chart, PBR needs to break key resistance at 11.84 and 12.50 in order to make a run at the gap on its chart from 14.50-15.70. The filling of that gap from current prices would spell gains of more than 35%

In the meantime, we’re looking at the the PBR Options chain. The May 2nd $12 Calls could be promising, in the event that we continue to see a general recovery. Those contracts that are currently trading in the mid-.30’s could be worth as much as 3.00 if the stock returns to the $15-level.

For a quick daytrading idea, we are looking at the $11 Calls that expire at the end of the day. It appears as if PBR wants to gap down to start the session and we may see a possible dip-and-rip scenario.

ML Capital Group, Inc. MLCG

Speaking of dip-and-rip opportunities, that’s what we saw out of MLCG yesterday. After a morning gap-up, the stock came down to .09 before taking off again to hit a high of .12, a 33% intraday gain.

MLCG has proved to be a volatile mover since we’ve been following it (03/05), and has risen as much as 227% from its recent four-cent low.

MagneGas Corp. MNGA

We’ve been following MNGA throughout the week. We saw it start out by coming from a low of 1.15 on Monday, and subsequently run up to 1.78.

It then bottomed out in the low 1.20’s around mid-week, only for yesterday’s news that the company had been commissioned to provide torch-cutting fuel to four major demolition projects, carried it back up to 1.66.

We’re now watching its activity as it pulled back a third time, finding support at the 1.43-level, and is currently gapping up to reach new highs in the 1.90’s. From Monday’s low of 1.15, to this morning’s high of 1.97 marks an overall increase of 71%

Extended Watchlist:
UTRM, UPIP, DEJ, PAL, AVEO, GNK, RGSE, BGMD, ECYT