JCP Archives - Page 4 of 6 - Blue Horseshoe Stocks

Blue Horseshoe Stocks: TWTR Options & More

Twitter, Inc. TWTR – Options Ideas

Toward the end of 2014, TWTR underwent a bit of a downturn on the heels of some insider selling and the general sluggishness of the market. The stock was beaten back into the low $35-range, and over the past couple of sessions it has done a good job of rebounding back to its highest level since the end of November. Our interest in TWTR relates specifically to the options chain, as we’ll look to take advantage of the recovery trend that’s currently in effect.

In particular the $38 (Closed @ 1.32) and $39 (Closed @ .83) Weekly Calls are catching our eye for a day-trading idea today. There is key resistance on the chart at the 50DMA 39.35, and in the premarket so far we’ve already seen trades as high as 39.60. Therefore, we’re watching for some early morning profit taking followed by a rally, where those contracts may provide some intraday trading opportunities later in the day.

For more of a long-term swing-trade idea, we can monitor the February $40 Calls (Closed @ 2.70).

Frontline Ltd. FRO

FRO made a nice move for us after appearing in yesterday morning’s report; the stock traded in a daily range from 2.83 to 3.27 (+15%), and did so on healthy volume to the tune of roughly 9X the 3-month average. We continue to watch FRO this morning as it gaps up in the premarket, with trades already having gone off as high as 3.61, which represents an overall increase of 28% over yesterday’s observed low.

As noted in an article on The Street, some bullish comments made about FRO on CNBC yesterday could be partly responsible for the strong session.

Extended Watchlist:
JCP, GALT, ARNA, PKT, NLST

Blue Horseshoe Stocks: LAKE Recap & More

Lakeland Industries, Inc. LAKE

Yesterday’s report turned up another premium opportunity for us to take advantage of a big intraday move. LAKE produced the largest percentage gain on the NASDAQ, starting out in the morning at a low of 10.32, and pressing upward all day long, hitting its high of 13.68 just prior to the closing bell. That equates to a strong 32% increase, and it came on more than twice the 3-month average volume.

LAKE is probably going to be a stock that we’ll want to monitor into the new year, following the recent revelation that the company would be releasing its Q3 financials on December 10th, which are expected to include increased sales to the tune of +15% We’ve been made aware that those numbers will not reflect international sales or impact from Ebola-related orders which are expected to be realized in fiscal Q4 2015 (period ending 01/31/15) >> Read PR

Options-Trading Side Note:

We want to give ourselves a pat on the back for accurately determining how to approach PBR this week. Just to give a quick rundown; we outlined the PBR January 17th $10 and $11 Calls in Monday’s report. We watched as they dipped back and gave us a good chance for a discounted entry, and in yesterday’s premarket report, stated that we’d attempt to reap our profits on the gap-up that was in progress.

From the lows we observed Monday, ($10: 1.16, $11: .67) we were able to achieve significant gains at yesterday’s early highs. The $10 Calls ran as high as 1.57 (+35%) and the $11 Calls saw the 1.00-mark (+49%).

There’s still plenty of time before these contracts expire, so there’s a good chance that we’ll be able to realize further opportunities down the road from the PBR 01/17 $10 and $11 Calls.

Let us take this opportunity to wish all of our members a safe and happy holiday, and we’ll see everyone for a half-session on Friday.

Extended Watchlist:
TASR, GPRO, CZZ, FCEL, JCP

Blue Horseshoe Stocks: RSH Coming Off 52-Week Lows

Radio Shack Corp. RSH

The last time RSH appeared in one of our reports was back in mid-May, and we’ve passively monitored the stock’s gradual consolidation over the few months since. On Tuesday, it registered an annual low of .55, and in each of the proceeding sessions, has maintained higher lows as the stock hints at a rebound.

Where a week ago we were looking at a steadily declining chart, we now appear to have one with several indicators turning in a favorable direction, and the price action is responding in kind.

What we want to see now, is a break of the 20DMA of .74 to really confirm that the stock is in recovery mode. We always like running across stocks coming off their 52-week lows, so we’re going to be monitoring the stock more heavily in coming sessions. The included snapshot below illustrates the indications of a ripening chart:

Med-Cannabis Pharma, Inc. MCPI

MCPI began to pull back yesterday after providing us with a good opportunity for gains this week. When all was said and done, we saw an overall increase of 55% from .355-.55, which is quite a respectable move.

In instances such as these, when profit-taking from a rapid move up creates a dip, we like to wait in the wings observing for a low point where we might collect cheap shares to ride into the next upswing.

We also want to keep an eye out for further updates on the three retail marijuana stores the company is setting up in the towns of Port Townsend, Port Hadlock, and Hood Canal, Washington.

Extended Watchlist:
JCP, MHR, VGL, DEJ, SPPI

Bllue Horseshoe Stocks: JCP, RNBI & More

JC Penney Co., Inc. JCP

To kick off the week, we placed JCP on watch via Monday’s Extended Watchlist, so let’s finish things off by taking a look at what happened this week. We saw a consolidation down to 8.18 before the earnings release hit the wires yesterday, after which time the stock began to soar.

Already in pre-market trading today the stock has bounced back to hit a high of 10.15, so we’ll be anxious to see what can happen if the stock can break past this mark which also coincides with a recent swing high in November/December.

The 8-K filed contained both increased quarterly figures as well as guidance for 2014, and things seem to be headed in a positive direction overall, so we’ll continue to monitor JCP over the foreseeable future.

Rainbow International Corp. RNBI

Noticing a sizable increase in volume in RNBI during a routine scan on Wednesday prompted us to put it on yesterday morning’s watchlist, and it turned out to be a beneficial decision. We would see the stock spike from a low of .18 running to .24, giving traders a chance to bank up to 33% intraday.

A stock that was trading by appointment only prior to its big rise in volume this week, gaining this much ground on the chart demands the highest level of caution for those who’ve yet to exit their position.

Added Side Note:

We just want to take a minute to address a cautionary statement by influential hedge fund manager David Tepper yesterday, regarding his overall sentiments toward current market conditions. His warning to traders to avoid going too long at the moment, sent ripples through the investment community, and the overall markets saw a pullback (leading to a spike in the VIX/VXX).

Occurrences such as this can be used to profit no matter which way things go; depending on how the public reaction is going to play out, we will be looking to adjust our strategy by trading options on either the SPY, in the event that things turn back to the bullish side rather quickly, or the VIX, should we see a sustained downturn.

Extended Watchlist:
ZBB, DCIN, KGJI, OVRL, GALE, MSTX, CSTI

Blue Horseshoe Stocks: BFLX, SKYF, OBJE & Extended Watchlist

Bioflamex Corp. BFLX

Over the weekend, we were conducting a search for some momentum plays to monitor this morning, and came across BLFX, a sub-penny stock which has just recently awakened from a relatively dormant period. These types of plays, while highly volatile, have definitely provided us with opportunities in the past.

After breaking a previous resistance level, the 200DMA (.0006), the stock held above that mark on Friday. A heavy influx of buying has come in over the past couple of trading days, and it closed out last week in full-on momo-mode.

Today, we’ll need to see BFLX maintain support above the 200DMA, and crack though the psychological barrier at .001 in order for us to remain interested in this play.

SKY440, Inc. SKYF

In the course of another of our routine weekend scans, we caught wind of another runner. SKYF has had significant momentum building up over the past couple of sessions, so this is going to be one that we want to keep on our watchlist as trading for the week commences.

As we point out on the chart below, all indicators are looking bullish and like the aforementioned play, SKYF is another one that we’ll need to see hold support above the .0006-level to hold our attention.

OBJ Enterprises, Inc. OBJE

We tagged OBJE as a bottom watch play on Friday, and like clockwork, the stock came down to find support at .04, and would subsequently bounce back to .0545, for a 36% positive intraday move.

Today, we’re looking for higher highs and higher lows out of OBJE to confirm a sustained uptrend.

Extended Watchlist:
WCUI. CPST, IDN, CERE, RSH, JCP