Blue Horseshoe Stocks: Momentum Play, Options & More

Shark Reach, Inc. SHRK

We’re going to be tagging SHRK for observation as a momentum mover this morning after noticing the huge activity in the stock yesterday. It came in conjunction with an article that Forbes ran about the company and its “influencer marketing” strategies. (>>View Article).

Many of our readers will have been aware of the marketing campaign that accompanied the theatrical release of the movie Straight Outta Compton, which was orchestrated by SharkReach. They promised Universal Pictures 7 million impressions and delivered more than 130 million, thanks in large part to the graphical memes that gained viral popularity for a period of months leading up to and following the film’s debut.

The rapid growth into a major player in less than three years of business definitely puts the company on our radar long term, but for the time being, there may be some short-term advantage to press with SHRK. We’ll look for profit-takers to surface after the stock’s rapid and meteoric rise, and be ready for a classic dip-and-rip scenario.

Facebook, Inc. FB – Options Ideas

With regard to a fresh options trading idea, we’re going to be watching Facebook for a possible move to the short side. The stock recently made a run that proved unsustainable, and the chart is looking rather toppy at the moment with a significant gap to fill to the low side.

For potential daytrading and intraweek swing-trade ideas we will be monitoring the Feb 5th $113-110 Puts. For a longer-term idea, assuming more hardship lay ahead for the stock, we’ll want to keep an eye on Feb 19th $109-105 Puts.

Extended Watchlist:

Blue Horseshoe Stocks: News Play, MHRC Recap & More

Magnum Hunter Resources Corp. MHRC
In yesterday’s premarket publication, we went over several momentum plays that have been very good to us in recent sessions, and among those was MHRC. We tagged this one last Monday (11/16)just a couple of sessions after it registered a new annual low.

From there the stock has built one heck of a recovery, and after a bangup intraday performance yesterday, it managed to press to new highs yet again. The intraday move on MHRC was from a low of .037 to .074, which comes out to an even 100%, and that high represents a total increase of 252% over our observed low of .021.

As we pointed out in a previous mention of this stock, there are a couple of gaps on the chart, the filling of which would mean more big moves to the upside. They sit at .08-.15, and beyond that, from .19-.26. The filling of the first gap would spell the chance for yet another double-bagger, so we’ll be sure to leave this play on our radar.

AgriEuro Corp. EURI

Speaking of momentum movers, we want to take this opportunity to recap the performance of another stock that we tagged for observation in our report on Monday the 16th. On that day, we caught the stock at a low of .381, and it has been smooth sailing ever since. EURI has recorded higher highs and higher lows every single day, culminating in an impressive new high of 2.00 yesterday.

That incredible move works out to total possible gains of up to 425% for anyone who caught our initial alert just seven sessions ago. Cheers to those who took advantage!

First Choice Heathcare Solutions, Inc. FCHS

Catching our eye toward the end of the day yesterday was FCHS. The stock made a nice intraday move from .73 and ran into the close at .98 on heavy volume.

That action alone would generally be enough for us to place a stock on watch for a possible continuation of momentum, but the company sweetened the pot even further with a post-market reveal of some promising guidance through 2016.

FCHS figures to be a stock that we track over an extended period, so now is the time to familiarize ourselves with its characteristics. To that end, we recorded a video of the chart this morning to point out some of the technical highlights, and would suggest our readers take a few minutes to check it out:

( Please Note: In the video, Stock Sumo gives the former company name, “Medical Billing Assistance Inc.” as it is still listed this way on First Choice Healthcare Solutions, Inc. is the correct and current billing.)


Pfizer, Inc. PFE Options Idea

We’ve noticed that PFE is rebounding off of a recent relative low on the chart, and this morning the stock is gapping up considerably in defiance of a less-than-ideal PR alluding to disappointing top-line results from late-stage studies of the drug Lyrica. We’re going to monitor a quick options idea to correspond with this activity, specifically, the PFE Weekly $31-32.50 Calls.

Extended Watchlist:

Blue Horseshoe Stocks: VTLC Review, Options Ideas & More

Voltari Corp. VLTC

VLTC is a stock we’ve been tracking since early this spring. The increased stake of billionaire activist investor Carl Icahn caused a frenzy at that time and led to the stock being one of our more successful calls to date in 2015.

Since the last time we were talking about it, VLTC has been under a general consolidation and caused us to turn our attention back with a momentous session yesterday. The stock produced a nice intraday run from a low of 6.24, and cracked through its 50DMA at 7.06 en route to a 8.33 high.

We’ll look for VLTC to maintain support at or above that 50DMA in order to retain our immediate interest, but for the long -term, we’re interested to see how the company’s recently announced shift in focus from mobile marketing to commercial real estate development will affect the stock in the future.

Diodes, Inc. DIOD

We’re seeing an interesting set of events unfold with DIOD, as it has been announced that the company will be acquiring another publicly-traded entity, (Pericom Semiconductor Corp. PSEM) in a transaction that will reportedly result in immediate accretion of PSEM’s added value to DIOD’s earnings per share.

It raises an interesting situation with a stock that is now coming off of a recent relative low, and as a result we’re going to formulate an extended-term options idea with the DIOD 10/16 $20 Calls.

We’ll want to see DIOD hold above 21.69 (50DMA), and test key resistance around $23. If it can manage to do so, those contracts should present us with the opportunity to reap tidy profits.

Potential Options Idea:

Today’s jobs numbers could render the Fed more likely to raise interest rates sooner than expected, which would put some fear into the markets and cause another dip. This morning’s premarket activity seems to suggest that’s what’s happening.  In which case, we’ll want to be standing at the ready with a corresponding options idea.

If things unfold as expected we could see some big opportunities for quick-strike intraday gains in the UVXY Weekly $73-78 Calls.