Tag: RUSS

Blue Horseshoe Stocks: RUSS Recap, Gap-Up List & More

Direxion Daily Russia Bear 3X ETF (RUSS)
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A few weeks back, on February 23rd, we radared the RUSS, which is a fund that trades with an inverse relationship with the Russian economy.

The past week has been particularly troubling for Russia, as its central bank slashed the primary interest rate by a full percent while revealing that its growth forecast predicted a shrinking of the economy by as much as 4% this year.

These and other economic curve-balls, including the continued lag in oil prices, have fueled a healthy rebound in the RUSS from the recent low we observed at 11.22. Friday’s high of 15.77 marked a 40% swing in a matter of eight trading sessions.

With some holding the belief that an even more severe and protracted economic meltdown could be in the cards for Russia, we’ll want to monitor RUSS on an ongoing basis.

Morning Gapper Watchlist

These are a few stocks that are cropping up on our scanner this morning as they gap up in the premarket. We’ll be on the lookout for the possibilities of continued momentum and/or dip-and-rip scenarios:

Microvision, Inc. MVIS  has been in blue-sky breakout mode for the past several sessions, and is gapping up today on the heel of the following PR:

Midstates Petroleum Co. Inc. MPO  is trading up in early activity this morning on a Q4 earnings and revenue beat:
Odyssey Marine Exploration, Inc. OMEX  is also up considerably, following Friday’s news of its entry into a financing agreement to facilitate offshore mineral and resource exploration.The company also has an earnings conference call slated for 10AM today, to discuss the contents of this morning’s filings:

Extended Watchlist:
IBIO, CERS, ACRX, ITEK, CTIC

Blue Horseshoe Stocks: BIOC, Options Ideas & More


Biocept, Inc. BIOC
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BIOC came off of yesterday morning’s extended watchlist making a big move to start the week. The stock traded up from a low of 1.71 and ran as high as 2.95, registering as an intraday increase of 72%  on heavy volume in the neighborhood of 17X the 30-day running average.

After pulling back slightly into the close at 2.20, BIOC is presently gapping up in the premarket this morning( High of 2.64), so we’re going to keep it on our watchlist for the time being.

The strong session came in conjunction with a positive PR which hit the wires yesterday:

SAN DIEGO, Feb 23, 2015 (GLOBE NEWSWIRE via COMTEX) — Biocept, Inc. (Nasdaq:BIOC), a molecular oncology diagnostics company specializing in biomarker analysis of cell-free circulating tumor DNA (ctDNA) and circulating tumor cells (CTCs), today announced that its blood-based diagnostic, OncoCEE-BR(TM), was used to determine hormonal status of metastatic breast cancer patients in a prospective study performed at the Columbia University College of Physicians and Surgeons in New York City. Findings from the Columbia study were recently published in the peer-reviewed journal Clinical and Translational Oncology.>>> FULL PR

Direxion Daily Russia Bear 3X ETF (RUSS)

The idea we brought forth yesterday of monitoring RUSS, which trades inversely with the Russian economy, is probably going to be one that we follow for a longer period of time given the drawn out nature of the events currently playing out in the Ukraine, and how they’re affecting Russia.

That being said, we did see some immediate upward price action as RUSS ran into the close, recording a daily trading range from 12.58 – 13.74, a modest, yet solid 9% appreciation on the day.

Added Note:

We also want to make note of a proposed joint venture in the works between two companies whose stocks we’ve mentioned in the past: First Solar, Inc. FSLR and SunPower Corp. SPWR. Both stocks began to move on word of a possible IPO for a new vehicle to be comprised of existing assets from each party. We’re going to keep them on watch as we await further updates on the situation.

They’re both gapping up further this morning, so we’ll be on the lookout for potential dip-and-rip scenarios caused by profit-taking. In such an event, we’ll be fixating on In-the-money Weekly Calls for options daytrading possibilities.

TEMPE, Ariz. and SAN JOSE, Calif., Feb. 23, 2015 /PRNewswire/ — First Solar, Inc. (FSLR) and SunPower Corp. (SPWR) announced today that they are in advanced negotiations to form a joint YieldCo vehicle (the YieldCo) to which they each expect to contribute a portfolio of selected solar generation assets from their existing portfolio of assets. Upon the execution of a master formation agreement, the parties intend to file a registration statement with the Securities and Exchange Commission (the SEC) for an initial public offering of limited partner interests in the YieldCo (the IPO). >>> FULL PR

Extended Watchlist:
CAPN, EYES, CYTX, CHGG, AXN

Blue Horseshoe Stocks: RUSS & More

Direxion Daily Russia Bear 3X ETF (RUSS)

By now we all have at least a limited awareness of the conflict currently underway in the Balkans, but just in case, let us provide a brief synopsis.

Ukrainian forces in the country’s eastern region have been clashing with militant separatists, even despite a recent cease-fire agreement. The separatists desire a return to Russian rule, and it appears that the group’s efforts have been aided by the Russian government.  As a result, heavy economic sanctions have already been placed on Russia, and it has been said that more are being explored.

The RUSS ETF trades with an inverse relationship to the Russian economy, so it’s conceivable that while Russia struggles with the economic repercussions of the conflict in the Ukraine, we could potentially see a protracted rise in this fund.

As you can see on the snapshot below, already it is showing indications of a reversal on the chart, exhibiting many of the characteristics of a prime bottom-play. As we kick off a new trading week, RUSS will be one of our primary items of interest.


Notable Mention From Friday

If you recall, we included a side note at the end of Friday’s report wherein we ventured that a market reversal and downturn could lead us to some interesting opportunities $22 UVXY Calls. While the markets overall continued their upward momentum, those traders who were quick on the draw could still have made a substantial profit from those contracts before they saw a pullback.

The $22 Calls made a strong initial push right out of the gate, running rapidly from 36-.63, a 75% intraday spike.

As you can see from the snapshot of the actual trade data of one of our top traders, significant profits were there for the taking early, even if one didn’t catch the low. From an initial block of $1860, he was able to cash out at the high of day for a 34% return in less than a half hour, leaving him with nearly $2500!

Extended Watchlist:
RIGL, BLDP, GEVO, BIOC, OCN

Blue Horseshoe Stocks: Great Start to the Short Week

Oncolytics, BioTech, Inc. ONCYJumping off of yesterday’s extended watchlist was ONCY, which not only produced a fruitful session yesterday, but continued to push its upper limits this morning as it touched a premarket high of .90.

After tagging this play yesterday, we witnessed a low of .57 before ONCY took off to set a daily high of .74 (+30%). As of this morning’s premarket high of .90, the stock had registered a total increase of 58%

Lucas Energy, Inc. LEI

LEI put up a pleasing performance as well yesterday. After being included in Friday’s report and making a move from .26 to .362 (+39%), the stock continued its trend, cutting a path from its daily low of .34 on up to .45.

That run marked an intraday gain of 32%, and an overall increase of 73% over our observed low on Friday.

Gevo, Inc. GEVO

GEVO, another inclusion in Friday’s watchlist, also made gains for the second consecutive session, trading in a range from .257-.30 (+17%). At its high, it registered as an increase of 49% from Friday’s low.

MagnaGas Corp. MNGA

MNGAalso appeared on our extended watchlist yesterday, and made a comparatively modest yet solid 16% move during yesterday’s session.

Yesterday’s Options Ideas

We focused on some longer-term ideas with the following two plays yesterday, and despite that fact, were very pleased with the immediate price action.

VASCO Data Security International, Inc. VDSI – The 03/20 $25 Calls we outlined in yesterday’s report made two sizable swings. First, from 5.11-7.10 (+39%) followed by a big pullback to 1.60 before it ripped back to 4.60, adding a huge intraday move equaling 187%

Similar action in the weekly calls at the same strike price (4.91-6.70, .72-4.21) could also have facilitated large gains.

Medtronic plc MDT – In MDT we zeroed in on the 03/20 $77.50 and $80 Calls, and both sets of contracts made big moves for us. The $77.50’s ran from a low of 3.70 and went on to touch 5.90, marking an intraday spike of 60%, and the $80’s would trade in a range from  .36-.83, which is a 130% jump.

Like VDSI, our longer-term idea could have applied to the weekly contracts here as well.

Extended Watchlist:
ROSG, ANGI, MSN, CUR, NOR, RUSS (Potential Bottom Bouncer)

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