Blue Horseshoe Stocks: RAS Update, Options & More

RAIT Financial Trust RAS

RAS was a point of focus in yesterday’s premarket report. We highlighted it as a stock that had been hammered back for the better part of the past two months, which was long overdue for a rebound.

Timing just doesn’t get any better, with RAS having just registered a brand new 52-week low in the previous session, the reversal we were after occurred as the stock traded in a daily range from a low of 2.30 on up to 2.57. While only a modest 12% increase, we’ll be very interested to continue monitoring RAS in impending sessions. The stock closed just a few pennies below the HOD on roughly 4.5X the 3-month average volume.

We’ll look for RAS to keep logging higher lows and establish a sustained recovery, and remember, there’s a gap on the chart beginning at around 3.15, the filling of which would put the price back at $4.


New Options Idea – The Walt Disney Co. DIS

There’s an unusual amount of excitement surrounding Disney this week, with Star Wars: The Force Awakens, the seventh movie in the Star Wars franchise set to hit theaters on Friday.

Add in the recent revelation that Alibaba (BABA) has teamed up with the company to distribute Disney films in China through a new device called DisneyLife, and we’re very interested in the potential activity these events could fuel in the DIS options chain.

As a result, we want to track contracts in the range of Weekly DIS $112-116 Calls for quick-strike chances, to try and take advantage of the current excitement. The stock is gapping up significantly in the premarket, so we’ll be on the lookout for an early dip-and-rip.


Extended Watchlist:
MCUR, MBLX, NGL, TERP, SUNE, AMBS, WEST, USAR

Blue Horseshoe Stocks: PLKD Update & More

Pleasant Kids, Inc. PLKD

PLKD has been a subject of discussion for us over the course of this month. Within the past couple of weeks we’ve tracked it as it went on a run from .06-.14, a 133% swing in a matter of five sessions. Following that, the stock pulled back to find support at .08, and subsequently rebounded back to .11 yesterday. That’s an added spike of 37% and our signal to continue monitoring PLKD’s progress moving forward.

In addition to providing action on the chart sufficient to net sizable gains for smart traders, PLKD has had a number of positive press releases come down the line recently. This includes an acquisition agreement set to take effect at the end of November, and a recent share reduction of significant magnitude.

As usual, we’ll look to see the stock continue to register higher lows as it has over the past three sessions. We’ve also pointed to a few bullish indicators on the chart that suggest near-term upside potential:


Options Update

We saw a modest move out of the gate from AAPL yesterday, which led the AAPL Weekly $114-116 Calls we were tracking to provide the chance to profit on the early dip-and-rip as we suspected.

The company’s post-market earnings report beat expectations, and as a result, AAPL is gapping up significantly in premarket trading today. This could facilitate further intraday surges in the contracts we specified, so we’ll remain hot on their trail as we head through midweek.


Extended Watchlist:
DNRG, HPTG, LATX, NRTI, WEST, XOMA,

WEST, THWI, ACI & Today’s Extended Watchlist

Westinghouse Solar, Inc. WEST

WEST appeared on our extended watchlist Monday for the first time, and the stock turned in a great performance. From the low of .211 to the high of .30, the stock managed a gain of 42%

It’s always nice when a pick pays almost instant dividends. We are certainly going to leave WEST on our active watchlist for the foreseeable future.

This, on the heels of Monday’s exciting announcement, stating that “CBD Energy and Westinghouse Solar Received 5MW Order From Australia’s Largest Whitegoods, Electrical Retailer, Harvey Norman, Commercial Division”

The Order for Five Megawatts exceeded the value of the company’s total shipments for 2011.


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Thwapr, Inc. THWI

THWI appears to be ripe for a rebound . We have been pounding the table on this play since last week, which was the perfect opportunity to get in cheaply as the stock had dipped to .026.

THWI has held a higher lows both days this week, at .029, leading us to believe that this consolidation period has almost run its course.

Yesterday the stock ran into a little resistance just shy of the 20DMA (.037), but once that level is breached, it would be no surprise to us if it were to continue on to test previous areas of resistance at .06 and .08, as we’ve pointed out on the chart below.

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Arch Coal, Inc. ACI

ACI continued its recovery yesterday, stacking up some additional gains from where we first spotted it in our alert at 6.07 on Monday. Yesterday’s high of 6.49 respresents a modest gain of 7% from our initial flag. As we stated in that alert, we are looking at this play more for its longer-term potential, however, we believe it has short-to-mid-term potential as well.

The stock closed above a key resistance point (the 20DMA of 6.43), which we view as a healthy indicator. We’d like to see ACI hold above that 20DMA, we will maintain our bullish opinion of ACI.

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Extended Watchlist:

   AAPT, ARNA, COIN, FEGR