Blue Horseshoe Stocks: APP, JNUG Reviews & More

American Apparel Inc. APP

When we began pounding the table on APP on Wednesday this week, it was for good reason. On that day we observed a low of .63. The chart was sending out bullish signals left, right, and center, and yesterday proved to be quite a day as the stock made a 58% intraday move from .72-1.14. That high also marked an overall increase of 81% over the low we witnessed the session prior.

APP is maintaining a majority of those gains, trading above a dollar in the premarket today so we’ve been provided with plenty of opportunity to take profits as the stock is on its way up. It remains to be seen if new CEO Paula Schneider can right the ship over time, but for now APP has given us the chance at some excellent short term gains.

Per the chart, 1.20 and 1.30 appear to be the next key areas of resistance. In order for us to remain interested in APP moving forward, we’ll need to see it maintain support at or above the .85-1.00 range.

Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG)

We’ve tracked JNUG regularly this fall, and after tagging it in both Tuesday’s and yesterday’s extended watchlist, this ETF has gained a sizable bit of ground. Tuesday’s low was set at 1.82, meaning that as of yesterday’s high at 2.78, we saw a 53% increase out of JNUG over just a three-session span. That low also marked the 52-week low, so our timing here really couldn’t have been any better.

We also want to note that per a recent PR, Direxion will be enacting a 1-for-10 reverse split of the shares of JNUG on Dec. 23rd (This Tuesday).

Other Notable Movers From Yesterday’s Report

Yesterday’s newsletter also yielded an additional three chances to reap intraday profits:

Totally Hemp Crazy Inc. THCZ  –  Range: .013-.018  –  Gain: 38%

Agenus Inc. AGEN  –  Range: 3.59-3.96  –  Gain: 10%

Real Goods Solar, Inc. RGSE  –  Range: .63-.70  –  Gain: 11%

Extended Watchlist:
CERS, MOLG, FMD, TRXC, SVM, ORE

Blue Horseshoe Stocks: APP, CERS Recaps & More

American Apparel Inc. APP

It appears as if we brought APP back into the discussion yesterday at an opportune time, as the stock enjoyed a healthy intraday move on more than twice the 3-month average trading volume.

After briefly seeing a low of .63 the stock gradually built its way up to an afternoon high of .69, an increase of roughly 10%, and in the premarket this morning APP has already traded as high as .78. That pushes the overnight increase on APP to 24%

Yesterday we mentioned that breaking of the 200DMA of .74 was a key event that needed to take place and we’ve seen that happen this morning, so APP is certainly going to remain high on our watchlists as we head into week’s end.

Cerus Corp. CERS

CERS was included in yesterday’s extended watchlist, and made a solid move during the day’s session. From a low of 5.26 the stock made a run at a high of 5.94, a modest yet notable 13% increase.

It came on the heels of the announcement that the company had received the green light from the FDA on its product that limits the risk of infection-transmission in blood transfusions. We always like a good FDA-approval play so we will definitely be monitoring this play in coming sessions.

CONCORD, Calif.–(BUSINESS WIRE)–Cerus Corporation (CERS) today announced that the U.S. Food and Drug Administration (FDA) has approved the INTERCEPT Blood System for plasma. The INTERCEPT plasma system is approved for ex vivo preparation of plasma in order to reduce the risk of transfusion-transmitted infection (TTI) when treating patients requiring therapeutic plasma transfusion. >> FULL PR

Eco Science Solutions, Inc. ESSI

We’ve still got ESSI on our radars, and wanted to remind our readers of this even as the stock has been trading in a tight channel between .20-.25 since we last took a look at it. The reason we still find ESSI attractive is that it boasts a tight share structure, and while we haven’t seen much in the way of volume, should that change, even the slightest amount of buying pressure could send ESSI flying.

From a business perspective, we’re also interested in the technology the company is working on, its innovative re-imagining on classic spark plug design. So despite not seeing much short-term activity, ESSI still has many of the hallmarks of a high-potential play that we’ll want to watch closely into the New Year.

We’ve drawn up a video on the current standing of the ESSI Chart, so take a look at that by clicking the graphic below:

If you missed our initial report on ESSI and its spark plug technology, go ahead and take a look now: ESSI Report

Extended Watchlist:
RAD, JNUG, EXXI, FRO, RGSE, AGEN, NQ, THCZ

Blue Horseshoe Stocks: Revisiting APP & More

American Apparel Inc. APP

This fall, for the first time in a long time, APP failed to see the increases that have coincided with the beginning of the retail season in recent years. Instead, here we are nearing the end of the heaviest shopping days of the year, and the stock is just now beginning to show signs of life.

CEO Dov Charney, thought by many to be one of the worst CEO’s on Wall Street, has been fired by the board of directors per a PR released this morning. His official dismissal amid allegations of misconduct is sitting well with investors, with the stock trading up significantly in premarket activity. We’ll be interested to follow APP more closely as the reigns are handed over to Paula Schneider on January 5th, and if she can turn APP back in a positive direction as the new CEO. >> Read About Charney’s Firing

Looking at the chart, the last time APP was trading as low as it has been in recent weeks was early this summer, just before the stock ran to over 1.20. We’ve covered APP for many years and have witnessed numerous big runs, so it wouldn’t be surprising to see a extended recovery off of these 6-month lows, if the stock can get over the hurdle that is the current 200DMA (.74). Beyond that, APP will have to contend with resistance points at .77, .85, and 1.09.

InterCloud Systems, Inc. ICLD

During this time of the year when tax-loss selling drives many stocks down to annual lows, we’re always on the lookout for a good bottom-bounce play. ICLD may fit that description. The stock touched 52-week low of 2.77 yesterday, and is currently trending up in the premarket.

The company released a PR this morning announcing  that its new business backlog was at record highs, ($32M) according to CEO Mark Munro, “This is a tribute to our growing sales organization and a competitive edge in our markets. InterCloud’s sales pipeline continues to grow month over month offering great upside as we move into 2015.” >>READ PR 

Extended Watchlist:
ECIG, XNY, CERS, PZG, SBGL