Blue Horseshoe Stocks: CGI Recap & More

Celadon Group Inc. CGI

Our first order of business this morning is to swing back around for a stock that we signaled our interest in back in May, which has subsequently gone on to put together a fantastic run up the chart.

When we tagged CGI on May 9th, the stock had recently fallen off of a cliff, and was attempting to recover off of its newly established lows. We observed a low PPS of 1.90 just a couple of sessions later, and that preceded one heck of a recovery. Yesterday, CGI streaked to new highs, coming up as the #4 top gainer on the NASDAQ, and reaching 5.15. That works out to a total increase of 171%

Having now recovered all of the ground it lost in early May, the chart still appears strong, and the next key resistance point we’ll look to see CGI make a run at is the current 200DMA of 5.95.

Options Ideas
We mentioned in the previous report that there would be a growing number of possible options trading opportunities as we neared the end of the week. This morning we’re looking at Facebook, Inc. FB, which reported yesterday post-market, and Anheuser-Busch InBev SA/NV (BUD), reporting this morning.

Each of them had beats, and are gapping up in the premarket. We’ll be monitoring the FB Weekly $172.50-180 Calls and the
BUD Weekly $120 & 125 Calls.

InfoSonics Corp. IFON

We also want to quickly recap the solid performance of IFON, which we tagged yesterday morning as a possible bottom bounce play, after seeing it test it 50 and 200DMA’s the previous day. The stock responded with another nice move from  .562 to .84, an intraday push of 49% on big time volume.

We’ll look for the establishment of higher lows and higher highs and for the stock to maintain its multi-day runner status, and for a break of resistance in the channel between yesterday’s swing high and a swing high back in April at 1.04.

Extended Watchlist:

Blue Horseshoe Stocks: FL, CNXS Recaps & More

Franchise Holding International, Inc. FNHI

On Friday morning, we were giving our readers an update on the stellar performance of FNHI since we’d first called it back on the 8th. subsequent to which time, the stock was trading at a low of .0061.

Not only did FNHI follow it up with a solid intraday pop, but also extended our total observed range in just over three weeks by a significant margin.

Friday, FNHI traded from 0265-.0449 for an intraday push of 69% That new high, measured from our witnessed low, comes out to an overall upswing of 636%

The stock also closed with strength at .0421, holding most of its daily advance, so we’ll be watching it this morning as we prepare to kick off a new trading week.

Connexus Corp. CNXS

Speaking of big movers, our tag of CNXS in Friday’s report came just in the nick of time for us to catch a fantastic intraday performance.

The stock traded up from a low of .0051, cracked through the penny barrier, and reached as high as .0159, for a whopping run of 212% on the day!

That performance marked the third straight session of higher highs and higher lows, so we’re definitely going to be on the lookout for a possible continuation of that trend. Ideally, we’d like to see CNXS hold support at or above Thursday’s swing high of .0092 on any pullbacks.

Foot Locker, Inc. FL – Options Update

We also need to bring readers up to speed on the excellent  post-earnings options idea we formulated on Friday for Foot Locker, the FL 03/17 $70-75 Calls.

Those contracts provided daytraders with some cherry opportunities for quick gains with FL’s bullish intraday run from 70.37 to 75.37. The potential profits were as follows:

$70 Calls – Range: 2.00-5.00 – Max Gain: 150%
$72.50 Calls – Range: .95-3.60 – Max Gain: 279%
$75 Calls – Range: .26-2.00 – Max Gain: 669%

Special Note on Bitcoin

Prior to last week, the all time high for Bitcoin was $1160, last week that high was broken, and has been making higher highs since.

Winklevoss Bitcoin Trust ETF (Pending:COIN) is subject to approval. Essentially, if the SEC raises no issues by the end of the comment period, the ETF can move forward unhindered. It has caused an increased interest in the space, and as a result, we’ve got our eyes on stocks like the above-mentioned CNXS, along with others like BTSC and GAHC

Extended Watchlist:

Blue Horseshoe Stocks: VXX Options & More

iPath S&P 500 VIX ST Futures ETN (VXX) – Options

We were just mentioning our daily live trader’s chats* in yesterday morning’s report, so we thought we’d give our readers another peek into the activity that goes on in the room. Yesterday around lunchtime, as you can see from the included screenshot below, we were observing the market action caused by the FOMC meeting that was in session at the time.

We noticed new highs in the VXX and signaled our interest in the $19 Calls. We also looked at the SPY, which generally trades inversely to the VXX, and alerted on the $207 Puts; both ideas worked quite well. The VXX $19 Calls ran from .49 to 1.52, a 201% intraday pop. The Spy $207 Puts also offered a nice opportunity as they ran more than 130% from the low 1.30’s to over 3.00.

To follow up with these ideas today, based on premarket activity, we are currently anticipating of a reversal from yesterday’s trends and will thus radar SPY $206-207 Calls, and VXX $20 and 19.50 Puts. However, if the VXX were to break its premarket high of 19.70, it would cause us to flip our targets back to the other side of the fence, so we’ll need to be extremely tuned in once the session gets moving.

*For those that didn’t catch yesterday’s reminder- we welcome any of our readers to get involved with our daily traders chats by sending a Skype contact request to ‘stocksumo’.

Avon Products, Inc. AVP

We’re going to place AVP on watch today as well, due to a number of factors. Setting aside the potentiality of an upcoming buyout of its North American business which has met with some resistance (View Article), AVP is setting itself up one heck of a chart. In today’s premarket trading the stock has breached the resistance line we identify on the following snapshot. There appears to be a good chance to see AVP add to its recent gains which have been fairly steady in recent weeks.

Despite public dissent from one of its large stakeholders, it appears that AVP will still attempt to move forward with their exploration of a proposed buyout (View PR), so it will be very interesting to track this play as that story continues to unfold.

Extended Watchlist:
KBIO, MKAU, HCTI, BCCI, AMBS, ABHI (Bottom-bouncer)