Today, after selling @35.1, my gain from this little guy is about 29% in 3 weeks. The reason I point out here is to introduce one of the most typical yet profitable trading pattern , NVEC's earning breakout. Earning, which has been quite a nervous time for many traders, will be the best time for patient investors who have been ready for the move.
First, why do I choose NVEC not others?
Playing earning breakout, based on my backtesting and history analysis, will create big profit for those stocks who have shown decent move previously and fall because of trading reason. Here pay attention to this, not the fundamental reason but trading reason. If fundamental is bad, for example, missed ER dramatically in its previous quarter,skip this stock. NVEC remains its pace for generating earning. Its earning growth rate is faster than 80% of stocks in that sector. the patent it filed on MRAM has yet to bring cash into their earning. With all the fudamental analysis done, I was quite sure that it is a good company deserved to play with.
Trading sound company reduces the risk of your trading. Think about that, a penny has the reason to be penny,because of no big instituion buying. If no big guys buying, all the spikes will be just spikes.
Second, when do I buy it?
I bought it twice, first was around $26.9, second time was $27.3. you can easily spot that both of prices have been located into the consolidation zoom , region below the black resistance and above the uptrend support line. The higher low underneaths signs that big money is bullish toward this guy, as a result, any down move of nvec will be regarded as shaking and consolidation. The breakout is there, ready to go.
Third, why choose ER?
Most of you have known, there is pre-ER move and post- ER move. ER is one of the most frequent points to break the resistence in stock history. Why? Think about that. Buying comes from institution and smart money. Buying into ER, normally happened in BH or AH, can enhance their buying power efficiency without too much distraction. NVEC is ready to break, this will be the right time to go.
For all of those reasons above, getting into NVEC above the uptrend support line. The possibility you make money can be a big fish if not a shark. Trading is about the possibility of making money. And what we need to do is to try to reduce the risk exposed.
Eyes on stocks that are ready to breakout before ER, it is your time!
5 comments:
千户是猪
罗宾也是
加上小树
三个猪头
师从傻蛋
各有专长
千户投资
罗宾搏傻
只有小树
学啥忘啥
you are rencai hehe.
哈哈，反指，你咋这么有特色呢
qianhu, this time i don't agree with u in terms of betting on er.
never bet on er. one good example is ice. see how fluctuated its price was. er play is not just about the earning. earning play is for long term.
for instance, hlx looks like a break out pattern before the er. even its pre-market trade shows the break out pattern. It turned out is a break down.
Making 20 to 30% is nothing in option play. today, since I couldn't play with hlx, I switch to grp 55 call. 20% gain in a very general day. The stock price only increase 1%.
Being a friend, I have to speak out when it is necessary. It is hard to build up good reputation but can destroy it so easily. I still fighting with my greedy every day. Should I bet all my investment on a potential 100, 300 percent call. Or place at least half of my eggs on those 20 to 30% weekly play?
in terms of big market. the down day is coming.
Back to the buy out discussion. The reason for why I target pharma/biotech is that many major pharma companies’ pattens are closed to due. In order to keep the market and also for handling the law suit trouble, they will have to merge/buyout other companies. Biotech companies are targets for cancer drug development buyout. I happen to have family members in this field. Know it very well.
Yes, I start to see some wall street gurus invest in aluminum industry. For instance, cenx.
I have pasted the age trying to impress other ppl, my investment purpose is to make me retire earlier. So that I can buy a farm in cental new york, sailing in finger lakes. Take care
Thanks so much for your input:)
Normally I shouldn't bet on ER, but I have figured out 5 patterns that have high possibility of breaking out. RS is the one, and NVEC is the second. OSG is the third. I tracked many stocks to study their breakout patterns and take several high possiblity ones out. Second reason is that NVEC's fundamental is solid, consistantly beating the view 4 times. These reasons all enhance the chance of success, though it may finally fail. :)
cong to your option profit. That is why I feel really pity that I haven't touch the option yet, otherwise, even calling into QQQQ should have given me decent profit. ER breaks out, as you mentioned, do increase their chance to hike later on. And I have already created a list about those companies who have showned accelerated ER and top in their sector. Dont know whether you have interest that i can send to you.
and thx for reminding me all the time, really appreciate that:) As for the big market, i don't expect the market will extend their gain pace recently. 13200~13300 should be a short term top as we are entering into the tough june, the correction time last year.
The buyout reason really makes sense in bio area. could you give me one expame that I can spend time to study into?
I like sailing too haha, cool !
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