Blue Horseshoe Stocks: SNTA Recap, Options & More

Synta Pharmaceuticals Corp. SNTA

After catching a PR containing some big merger news for SNTA yesterday morning, we decided to include the stock in our premarket report, and it turned out to be a good decision.

On just under 12X the 3-month average trading volume, SNTA ran from a daily low of .32 up to .45 inside of the first 90 minutes of the session. That registered as a respectable intraday spike of 41% As measured to this morning’s premarket high of .488, that figure is extended to 53%

We’ll have our eyes peeled for another push this morning. The type of volume that we witnessed yesterday coupled with the stock holding more than 50% of its daily gains, puts SNTA into the category of a possible momentum play.


Bonus Pharma Watchlist:

We are also going to be monitoring the activity in a couple of other pharma stocks in coming sessions:  Aoxing Pharmaceutical Co., Inc. AXN and Eleven Biotherapeutics, Inc. EBIO

EBIO is reportedly another reverse-merger candidate that caught a wave of momentum on the heels of yesterday’s big news, and AXN is showing a double-bottom signal and has been making headway trading up off of its lows for the past few sessions. We’ll want to monitor both of these plays into next week.

SPDR S&P 500 ETF (SPY) – Fresh Options Idea

It wouldn’t be a typical Friday without a end-of-week options idea, so we’re going to turn to one of our classic targets- the SPY. Here in the premarket we’ve observed a low of 207.58. How we’ll want to play it is this: Should the SPY maintain support at 207.50 or above on any early pullbacks, we’re going to be interested in the Weekly $207.50-208 Calls. In the event it fails to hold support a that point, we’ll look to the Weekly $208-207.50 Puts.

*CAUTION: Trading weekly options on Friday is commonly a very high risk proposition. To be attempted by advanced traders only!

Extended Watchlist:

Blue Horseshoe Stocks: Several Updates, New Ideas & More

Linn Co. LNCO & Linn Energy LINE

We often include this related pair together and have mentioned them several times in past reports. Most recently was a week ago today, when we called attention to the fact that their [nearly identical] charts were trading at a relative bottom and looking ripe for a rebound. It didn’t take long for our expectations to come to fruition, with both stocks posting solid performances during yesterday’s session.

LNCO ran from .355-.515 for a move equaling 45%, while LINE did slightly better with a run from .32-.50, representing a  56% intraday upswing.

Rex Energy Corp. REXX

We took notice of the momentum that had built up in REXX yesterday, leading us to include a mention of it in our premarket report. We liked its chances of continuing the pattern it had established on the heels of a purchase agreement announcement, and that’s just what it did.

From a morning low of 1.03 we witnessed REXX run as high as 1.44 shortly after 1PM. That registers as an intraday pop of 40% We’ll continue to keep an eye on this play provided it can maintain support above a dollar on any pullbacks.


Added Note: GEVO was another one from yesterday’s report to trade solidly in the morning and early afternoon. The stock made a relatively small 20% intraday move from .25-.30. It’s still hovering around that high early on today, so we’ll be leaving GEVO on our radars also, for the time being.

Oil-Related Plays

We also wanted to remind our readers of the plays we’ve been tracking recently that are tied to big oil:

VelocityShares 3x Long Crude Oil ETN – UWTI
Petroleo Brasiliero SA (Petrobras) PBR

Both have been putting up solid performances with oil having been on a bullish tear in recent sessions. It appears as if many oil stocks are gapping up in the premarket, so we’ll be interested to follow the resultant action in our own oil-related interests. In the case of Petrobras, we want to go ahead and signal a possible options idea: We’ll be looking at observing PBR Weekly $6 & $6.50 Calls over the remainder of the week.

Strikeforce Technologies, Inc. SFOR – Recap

We also want to take a second to comment on the early move made by another of our recent items of interest, SFOR. In the video chart we published, we mentioned needing to see it hold above a specific support level and it managed to do so for the first part of the session. The stock caught a bounce off of the .0026 level and ran 62% intraday to .0042.

That daily high represented an overall new high for us as well. We’ve now seen a total jump of 500% over our observed low of .0007 from the day of our initial alert on March 31st.

Extended Watchlist:
MDVN, GSS, SDOC, AGTK, TALK, KGNX(Bottom-bouncer)

Blue Horseshoe Stocks: ASUV Recap, Bottom-Plays & More

Harmonic Energy, Inc. ASUV

We tagged ASUV back on Leap Day as a possible bottom-play, and after seeing the stock find support at an ultimate low of .0024 just a couple of sessions subsequent to that, it’s been a series of almost non-stop upturns since then.

One look at the 3-month chart on ASUV shows why we felt the need to circle back around and congratulate ourselves for an amazing bottom-call. As of this week, we’ve now witnessed ASUV run as high as .043. That marks an epic surge of 1692% over a five-week span!

With the chart beginning to look a bit top-heavy, we’ll now transition into monitoring for dip-and-rip type activity. In order for the stock to continue to hold our attention, we’ll want to see it maintain support above its previous resistance at .02 on any pullbacks.

Pacific Sunwear of California, Inc. PSUN

Speaking of bottom-watch plays, we’ve got another one to enter into the mix this morning in the form of PSUN. This play has appeared in our reports at various times over the past few years. Presently, as is readily apparent on the following snapshot, the stock has absolutely fallen off of a cliff following a major two-day upswing. It appears to have over-corrected to the low side.

Whenever we run across stocks in this position, our bottom-feeding sense kicks in big-time. The volatility at play over the past few sessions could be used to our advantage on the next leg up, which could be in the cards sooner rather than later, so keep an eye peeled!

On Continued Watch: LNCO & LINE

We placed both of these potential bottom-plays on watch to kick off the week in Monday’s morning report and we want to reinforce our interest this morning. As you can see from the side-by-side comparison, these two trade very closely as they are tied to the same parent entity.


Also on our radars with big oil making a reverse yesterday, is VelocityShares 3X Long Crude ETN (UWTI). If oil continues its rebound through today as we suspect it might, there could be some interesting activity in UWTI.

Fresh Options Idea: To dip back into the options trading pool this midweek, we’re going to signal STZ Weekly $150-160 Calls for potential day/swing-trade opportunities.

Extended Watchlist: