Blue Horseshoe Stocks: Bottom-Play Roundup & More

Last Week’s Bottom-Bouncers

We were tracking a couple of stocks and an ETF that we put on bottom-watch heading into the end of last week, and are happy to report that we’ve seen the beginnings of some nice rebounds on those fronts.

Direxion Daily Nat Gas Bull 3X ETF (GASL)
It started with the triple-leveraged natural gas bull fund, GASL, which we caught coming off of its 52-week lows and entered into the conversation on Thursday. At the time we would witness a PPS low of 4.88, and after a nice initial run that day, GASL would go on to register a high of 6.98 on Friday. That marked a timely call on our behalf which opened the door for overnight profits of up to 43%


LINN Energy, LLC (LINE) & Linn Co, LLC (LNCO)

We tagged this linked pair on Friday, noting that one is a publicly-traded wholly-owned sub of the other, and that the chart patterns were virtually identical. Traders could have latched on to either, and witnessed the reversal we called for on the charts.

The move for the parent, LINE, was recorded as a run from 2.73-3.83, a 40% intraday swing. The subsidiary, LNCO, ran 34% from 2.46 to 3.29. Both very respectable single-session moves.

We’ll continue to monitor all three of these plays for the possibility of continued uptrends as we kick things off this week. We’ll look for each one to register higher lows, building a higher base of support than we witnessed on Friday.

Pazoo, Inc. PZOO – Update

We re-tagged PZOO on Friday, pointing out the recovery that had been transpiring on the chart, and we were granted another nice opportunity by the stock. We watched as it ran from a daily low of .0059 and went as high as .0073

In the video chart we drew up for PZOO in that report we mentioned we wanted to see a break of the 50DMA (.0061) and we’ll look for the stock to maintain support at or above that level on any pullbacks. The next area of key resistance crops up at the 200DMA of .011.

The company had a conference call last week (>>>Read Transcript or >>>Listen to Call) which went over a vast array of important topics. We suggest taking the time to go over that; highlights included financial and share structure data, as well as information regarding all branches of the company’s rapidly expanding marijuana testing business.

The Medicines Co. MDCO

Setting off our abnormal volume scanner this morning was MDCO, which looks ready to fly with un-traded upon news regarding a cholesterol study hitting the wires on Sunday. The stock is up considerably in the premarket, so we’re going to formulate a potential quick-hitting options idea for intraday/intraweek flip opportunities- We’ll be looking for the possibility of dip-and-rips in the range of MDCO Weekly $38-41 Calls.

Extended Watchlist:
SIRG (Subpenny Momentum Play)
BONT, SFXE, GBSN (Bottom-Watch)

Blue Horseshoe Stocks: PZOO Update, Bottom-Plays & More

Pazoo, Inc. PZOO

We’ve been keeping close track of PZOO over the past couple of weeks; our regular readers will recall our last mention of the stock back on the 18th, when we called attention to the formation of  a double bottom on the chart. We suggested it was time to begin monitoring the stock heavily for a potential recovery and it began just a few days later.

PZOO ultimately found support at the .0032-level, and over the course of the ensuing five sessions, bounced its way back to .0058, marking an 81% swing.

We’ve provided a video highlighting some of the key aspects of the PZOO Chart and what to look for moving forward:

Direxion Daily Nat Gas Bull 3X ETF (GASL)

We flagged GASL, a triple-leveraged ETF for natural gas bulls, as a potential bottom-play in yesterday’s premarket report, and it went on to make a respectable intraday move.

GASL started out its daily range from a low of 4.88 and ran into the close, hitting a high of 6.08. That gave traders the chance at banking up to a solid 25% in profits on the day.

Possible Bottom-Plays

Speaking of potential bottom-plays, we’re taking notice of a couple of related stocks with strikingly similar charts that have been beaten back to annual lows, and begun to show signs of a recovery this week.

LINN Energy, LLC (LINE) & Linn Co, LLC (LNCO)

LNCO is a publicly traded subsidiary of LINE, which explains the similarity of the charts and suggests that each will continue to mirror the other. We’re going to keep watch over this linked pair in coming sessions for the possibility of a protracted rebound.

Blue Horseshoe Stocks: Options Review & More

Options Ideas – Updates

On Tuesday, we mentioned the possibility of taking advantage of the recent market downturn by utilizing some extended options ideas as stocks began to recover. We flagged 09/18-10/02 Calls in the FB, GPRO, GMCR, AAPL, NFLX, and TSLA chains. It didn’t very long for these ideas to bear fruit; we identified the following opportunities during yesterday’s session:

FB Sept 18th $85 Calls – Range: 3.54-5.25 – Max Gain: 48%
AAPL Sept 18th $105 Calls – Range: 4.95-7.40 – Max Gain: 49%
NFLX Sept 18th $98 Calls – Range: 10.75-15.23 – Max Gain: 42%
GPRO Sept 18th $45 Calls – Range: 3.04-4.00 – Max Gain: 32%

All of these stocks are gapping up significantly in the premarket today, so we expect to see some further chances for profit in these contracts. We’ll have to remain open to the possibility of needing to roll up our strike prices/expiration dates to stay closer to the money as the situation dictates.

Recap: Abengoa (SA) ABGB & Direxion Daily Nat Gas Bull 3X ETF (GASL)

We were tracking both of these stocks in the premarket yesterday, and each made modest yet notable intraday moves. ABGB traded in a range from 5.91-6.58, while GASL made its way from a low of 4.12 and went on to hit 4.56.

Both of those moves registered as 11% intraday increases, and in each case we’re going to be looking for the stocks to record higher levels of support than yesterday’s swing lows as we head into week’s end.

Great Basin Scientific, Inc. GBSN

We also want to tag GBSN as a bottom-watch play this morning. We love to track stocks that have been beaten back to new 52-week lows and bear an oversold look on the chart, and this is a prime example of just such a play.

In a press announcement this morning, the company has addressed the recent selloff, and we’ll be interested to see how the stock reacts. The CEO stated: “We believe our recent stock performance represents a technical inefficiency related to unit separation, not the underlying fundamentals of the Company’s performance”. >>VIEW PR

Extended Watchlist:

Blue Horseshoe Stocks: ADAT, Options Recaps & More

Authentidate Holding Corp. ADAT

Despite turbulent overall conditions, to this point we’ve succeeded in weeding out at least one big winner each day this week, and yesterday’s was most assuredly ADAT. We tagged this stock after noticing some unusual premarket activity, and it proceeded to break out immediately following the opening bell.

We witnessed a big-time surge from a low of .15 all the way up to .55 in the first 35 minutes of the session. That’s an eyebrow-raising 267% rip! Big cheers go out to any of our readers who were able to ride that massive wave of momentum to quick intraday profits.

Bon-Ton Stores, Inc. BONT

We called BONT as a bottom-watch play in Friday’s premarket report, noticing it testing new annual lows, and described it as being generally undervalued.

Our instincts proved to be quite accurate; the stock found its ultimate low of 2.89 during the next session on Monday, and followed that up with a tremendous rebound yesterday. The stock ran back to touch a high of 4.15, representing a session-over-session swing of 44%

Moving forward, we’ll look for BONT to continue to build higher levels of support. The stock will need to maintain above yesterday’s low  to retain our immediate interest, but remember, we like to begin to monitor retail stocks like this one more heavily as schools go back in session and the holiday season rapidly approaches.

Options Ideas – Updates

We’ve got to update our subscribers on the performance of the options ideas we’ve been tracking this week for the second straight day. We zeroed in on the performance of Weekly UVXY $49 Calls and Weekly SPY $190 Puts, which we had already seen make considerable moves on Monday, and the opportunities just kept coming. Just look at the kind of gains that were offered up:

UVXY $49 Calls  – Daily Range: 5.00-19.30 – Max Gain: 286%

SPY $190 Puts – Daily Range: 1.10-4.77 – Max Gain: 334%

The markets are gapping up this morning, so we’ll be on the lookout for a possible selloff from profit-taking followed by a subsequent rebound, for the chance at added opportunities in these plays as we progress through midweek.

Extended Watchlist:
ABGB(Gapping Up, Gaps to Fill on Chart), GSAT and GASL(52-Week Lows)

Blue Horseshoe Stocks: CRGP Recap & More

Calissio Resources Group, Inc. CRGP

Amidst one of the biggest market backslides in years, we were still able to root out a triple-digit gainer from among the chaos. We tagged CRGP in our premarket extended watchlist as a momentum play based on the activity it recorded at the end of last week.

CRGP had enough strength and interest from the trading community to barrel its way from a daily low of .005, cracking through the elusive penny-mark, and setting a high-of-day at .0118. That represents an intraday pop of 136%, and it happened in conjunction with more than 9X the 3-month average volume of shares changing hands on the day.

Following its nice run, the stock pulled back to .0059 into the close, and we will be on the lookout for the possibility that it needs to come back a bit further to fill the gap on the chart from Friday’s close of .0045. So it’s from that level that we’ll look for possible bounce-play opportunities, should CRGP continue to consolidate.

Options Review

With the volatility caused by current market conditions, there was money to be made on both sides of the fence over the course of the day with the general options ideas we offered in our morning report, which were SPY In-the-Money Puts, and UVXY Calls. Here’s an idea of the kind of gains that those selections made available during yesterday’s session:

SPY $190 Puts – Range: 1.48-5.34 – Max Gain: 260%
UVXY $49 Calls – Range: 7.21-19.00 – Max Gain: 164%

We expect the current market to continue to provide similar action and chances for gain, but we wouldn’t expect to see it occur with quite the same volatile conditions as yesterday.

We’ll be looking to go long on big-name options whose stocks have been beaten back severely over the past few sessions. As the market corrects itself, we’ll be monitoring some longer-term options to possibly take advantage of the eventual recovery.

To allot sufficient time for us to see that, we’ll be tracking 09/18-10/02 Calls in the FB, GPRO, GMCR, AAPL, NFLX, and TSLA chains. We’ve banked enormous profits off of every one of these in the past; it’s now just a matter of laying in wait for the next big chances to present themselves.

Extended Watchlist:
ANFI, CJES (Potential Bottom-Bouncers), ADAT