All of them fall into following pattern:
1. Near year low. Current year, may not 52 week low. But anyway not far from 52 week low.
2. Report ER.
3. Was strong stock before.
4. Gap up at open (or AH).
5. Broard market not very bad.
The action should taken is: chase at open next morning.
As example, JOYG is close to 2006 low, when broard market bounce quite some it's not. Reported good ER in AH yestoday, gap up at open today at 39. It's a chase. It closed at 43.54 and I expect it going higher in the following days. The Sep 40 call was 1.2 at open, high is 4.5. 400% return in one day.
ER2 chart for 8/31/2006:
No comments:
Post a Comment