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Mid-February Synopsis

Published by in Blog on February 18th, 2012

It’s been a while since I created a post, updating you all with my current status and what not. With that being said, I have been doing quite a bit of research lately and going through a whole array of Timothy Sykes video lessons. On top of that, I was accepted into the Timothy Sykes Trading Challenge but am still going over a few things before fully diving in. As of now, I am focusing on the mere fundamentals of the research process and touching up on a few things here and there. Within’ a few months, I plan to begin the paper trading phase which will allow me to adjust my trading strategy and potentially perfect it…in a sense.

Moving forward, this month has been ever so hectic due to this being the final semester I am in high school, not to mention, my business is currently in a slow period. School wise, I am simply adjusting to my new schedule, not too bad but will allow me to finish out the year with ease. Getting pretty pumped as I am looking forward to starting college in the fall. I cannot wait to sign up for classes and to just begin my journey to getting my MBA. This is going to be one hell of a year and I am looking forward to many things. My business in consumer electronics right now is as I said, in a slow period so I am working hard towards adjusting certain things and getting everything back into par.

At the end of the day, I have learned many things this month and have realized quite a few things…on a new perspective. I am remaining focused and proceeding towards my current goals at hand. In the upcoming months, many changes are going to be occurring and a vast quantity of opportunities are going to come forward as well.  It’s all a matter of time before things begin to get real and I am trading with actual money…let the games begin.


Hope, dreams, and everything in between.

Published by in Blog on January 29th, 2012

January has treated me well. I had the fortunate opportunity to get accepted as a challenge student of Timothy Sykes, a trader who needs no introduction in Wall Street’s gutter. For those of you readers who haven’t heard of him, you were probably trading Google when BVSN took a massive dump a couple of days ago! But in all seriousness, life all comes down to a few moments, this being one of them. My financial independence will be the result of this moment.

Paper trading with a hefty margin power has helped me craft this niche strategy well during the past weeks. I plan on putting a stop to this and opening a small account over at  ThinkorSwim soon. Experience and time will tell when the craft will begin molding my financial success. But I’m not worried about that now. All I hope is to learn and experience. My “caveman” days of watching and jotting down pages notes on Tim Sykes’ extensive DVD collection has finally come to an end tonight. With the exception of his new ones which I intend to watch in the upcoming days. Pennystocking Part Duex, TIM Fundamentals, TIMRaw and TIMTactics were my favorite ones by far. Read their reviews on Investimonials.

In the next couple of months, me and Jordan will be adding more content to the site; Watchlists, market recaps, video recaps, ect with emphasis on microcaps and smallcaps. My profit.ly stats will also be posted on the site, verified of course.  That way you can see my track record as I embark on this trading challenge under Tim’s guidance. I encourage you to sign up here and join this transparency revolution. We’ll also be expanding our resources page to accommodate new traders and investors, in which I’ve been getting e-mails about. Keep ‘em coming! I’m always happy to help a fellow journey-men in their quest for financial independence!

On another note, there’s been some talk about a New York trip in mid June that I, alongside Jordan and our friend Brett from www.bsiflingtrades.com will be partaking in mid June. Brett’s also a new trader that shares our same passion and drive. He mainly covers biotech companies and provides video lessons and market recaps. We also have interest in attending the Annual Pennystocking Conference in Las Vegas this year. Moments like these don’t come everyday, let’s just hope the casino doesn’t put holes in my pockets. If you plan on being at the conference or NY, let us know!


Stock Trading has reached its lowest point since 2008

Published by in Blog, Market Recap on January 24th, 2012

The U.S. stock market has fell to the lowest level since 2008 due to a mass amount of mutual fund withdrawals and Wall Street job cuts. Roughly 6.69 billion shares were swapped around on the U.S. exchanges in the amount of 50 days which ended on january 18th, the lowest amount ever recorded…excluding OTC venues. On the NYSE (New York Stock Exchange), volume has reached a shocking low and hasn’t been this low since 1999, according to Bloomberg data. This slowdown shows that many investors are acting quite bearish and are either taking their losses and withdrawing from the stock market or just withdrawing from the stock market before it’s too late. Many mutual funds are taking losses and things are not looking good on Wall street. Securities firms around the world had to cut more than 200,000 jobs last year. What is really putting a strain on the U.S. stock market is Europe’s debt crisis. Mark Turner, who is head of U.S. sales trading at Instinet Inc. in New York believes that many investors have low confidence in the current market and do not want to set themselves up for disaster. Turner believes as soon as Europe’s debt crisis has figured out some kind of plan to recover, the U.S. market will begin seeing a large spike in volume.

This month, the S&P 500 has seen a 4.6 percent rise, however, has failed to offset the decline in volume. Bloomberg data shows that about 6.85 billion shares worth $209.6 billion have been moved around in the stock market each day this year, down about 16 percent and 12 percent, from the same time period in 2011. Good news is that the S&P 500 rose to an almost six-month high of 1,315,38 last week. The NYSE (New York Stock Exchange) has never seen such bad trading volume since 1999. The 50-day average shows 847.5 million shares last week. As for value traded, we’re looking at an average of $25.1 billion, a level like this hasn’t been seen since 2005. Moving forward, the Nasdaq Stock Market isn’t looking so good either, with the 50-day average being 1.72 billion shares. Daily stock movement has been $45.1 billion, which is the lowest since 2010, according to Bloomberg data.

As I previously mentioned, investors are not willing to take a lot of risk, considering how 2011 went, which all in all was a terrible year for the stock market. Many hedge funds are losing massive amounts of money; in 2011, hedge funds lost 4.9 percent. Many managers have cut leverage, or money borrowed for trading…Not to mention, there has been a major decrease in volume. What you should take away from this post is that the market is not doing good. Lets hope the market turns around soon and gets out of this bearish stage.


Watchlist for 1/17/12

Published by in Watchlist on January 17th, 2012

QCOR
Questcor Pharmaceuticals, Inc. Short squeeze caused by Streetsweeper during the close, Long biased on the bounce during the morning considering it held nicely through support at the close.

ACAS
American Capital Ltd. Buying the confirmed breakout if it hits 7.45.

WLK
Westlake Chemical Corporation. Watching it closely as it reaches the $55 key level. A possible short into the afternoon fade considering it was downgraded by rating giant Fitch after market hours closed on Friday. A rejection of 1.03 billion to buy rival Georgia Gulf was released on Monday, which could mean no continuing buying. Waiting for a pullback.

MY
China Ming Yang Wind Power Group Ltd. Very nice gradual increase in volume throughout last week. Buying strength building up as it takes out key monthly resistance. Looking to scalp it on the morning from momentum buying when it takes out 2.60.

IRE
Governor & Co. of the Bank of Ireland. Very nice run up in volume in breakout territory. Watching closely for that pop at 5.10

IDIX
Idenix Pharmaceuticals Inc. The gap up and the snowballing squeeze. Watching for the short biased area at $15. I bet market makers are all over this one.

STEV:BB
Stevia Corp. Watching closely for a pullback and the bounce on this pump.

Potential plays for tomorrow:
ACHN
ZLTQ
MBLX
TSLA
SFLY
SAGE


A recap of my winter break

Published by in Blog on January 12th, 2012

To begin, I will start off saying that my winter break was pretty good, many different things were accomplished and I feel that a lot of progress was made. I finished off all the articles I needed to read on Investopedia; ending my research with four entire notebooks completely filled with notes. That was a sign of relief, considering a lot was to be done and everything needs to remain on schedule. Following my completion of Investopedia, I ventured onto the Timothy Sykes Collection (all the DVDs he has released) which is going extremely well. When I finish his DVD collection, I will have much more knowledge in the area of not only penny stocks, but the SEC, many different fundamentals that are key to know and so fourth.

As of today, I plan to continue the DVDs by Timothy Sykes, taking notes on each and every one. Once the DVDs are completed, I will do further research, touching up on key points and then will begin paper trading over at thinkorswim. I will be paper trading for a good three months at the bare minimum and then begin actual trading. In the beginning, focusing on penny stocks, building up my portfolio and net-worth, eventually diversifying my portfolio by moving into bullish blue chips such as Microsoft, Intel, Cisco, Kimberly-Clark, etc. I see myself within’ the next six months graduating from high school and beginning college in the fall in order to achieve my bachelors degree in finance.

Looking back months ago when I first started this journey, it’s been a ride, let me tell ya…however, things are looking better than ever and I couldn’t have asked for a better turn out thus far. I plan to continue doing good in school and going straight to a university in the fall after I graduate from high school. My ultimate game plan is in motion and there is no turning back now, everything is how I want it to be, my business partner is excelling as well…all the pieces of the puzzle are seeming to fall into place lately.


Winter break recap

Published by in Blog on December 29th, 2011

The laziness has sadly kicked in this winter break. And I haven’t taken much advantage of the free time I have left. Nonetheless, me and Jordan have still been researching like there’s no tomorrow. As of now, my focus is on learning Timothy Sykes’s trading strategy. Of course, there are many more that I’m exploring. Some include swing trading and arbitrage. A midst all this I been reading An American Hedge Fund, chapter 5 now and liking it so far. I also ordered several books including; ‘Trading For A Living’ by Alexander Elder and ‘Fooling Some of The People All of The Time’ by David Einhorn. Both highly respected investors and traders.

Paper trading has been smooth. Been testing out a couple of strategies but haven’t really gotten into it as much. My focus now has been trying to find internships and meeting with highly experienced individuals in wealth management firms, seeking career advice and financial wisdom. I feel very optimistic about the future and things have been moving forward pretty fast. In the other side of things, my business partners and I have shared some enthusiasm in joining Capital Traders Group. A prop firm that has been the talk in town on Investimonials. Although I have gotten mixed feelings from a couple of seasoned veterans, I try to shed some light on this new discovery and give them the benefit of the doubt. I rather judge after I experienced it, thats just how I see it. So with that, I plan on taking the series 56 exam and join by March of next year.  I think this would be a great opportunity to learn about day trading and finally have some work experience under my belt.

Winter break and the laziness it came with are finally coming to an end. Next semester starts a new and my heavy schedule will keep me busy . My new career prospects will keep me hungry, and my long term goals will keep me motivated.

Happy holidays to all our followers and supporters. Remember, stay bullish!


5 best-performing stocks of 2011

Published by in Blog, Stocks on December 29th, 2011

Taking the No. 5 spot is MasterCard (MA)
MasterCard services and supports credit, debit and other related payments to financial institutions. This company is surprassing many simply because of the worldwide trend which ultimately leads up to card usage, cash and checks through the company. MasterCard shares have returned an astounding average of 30% a year for the past five years. This year, the company has a cool 60% gain. According to Standard & Poor’s, MasterCard may see a new high of $400; that was the price target issued by them. Projecting a 25% increase in the company’s revenue this year alone, and 13% this coming year. MasterCard is curretnly at the top of all payment processors and are looking to remain on top.

At the No. 4 spot, we have Biogen Idec (BIIB)
Biogen Idec is a biotechnology company whose main concern is developing drugs for neurological disorders and other medical conditions. The main thing this biotech company focuses on is intreatments for autoimmune disorders. You may be wondering where did this company come from and how come they are soaring above many other biotech companies…well, according to money.msn, the recent approval of a new five-year European marketing plan for multiple sclerosis drug Tysabri and positive findings from a study of Avonex, another multiple sclerosis drug, have attracted investors. From what I can see, this company has a vast network of strong investors who are backing up this company 100%. As of today, there are several products already in/entering Phase III clinical trials. According to Standard & Poor’s, they expect Biogen Idec to have a revenue growth of 3.5% this coming year. This year, there was a 6% increase in revenue growth; with a total gain of 64%.

Next up, at the No. 3 spot we have Intuitive Surgical (ISRG)
Intuitive Surgical focuses on producing and selling a device known as the da Vinci Surgical System, which is a robot-assisted surgical device that allows surgeons to perform complex procedures; those include open-heart surgery with incisons as small as 1- to 2-centimeters. According to Standard & Poor’s, they see an increase of $14 per-share earnings in 2012, up from this year’s $11.90. Intuitive Surgical has topped this year with a 68% gain.

To no suprise, at our No. 2 spot is El Paso (EP)
El Paso is a huge company whose main goals focus in gas transportation and storage. In October, El Paso was acquired by Kinder Morgan (KMI) for a whopping $38 billion. What do you have when you combine El Paso with Kinder Morgan’s pipeline operations? The nation’s largest midstream energy transporation company. It gets even better, at this given point in time, demand for natrual gas is at an all-time high and continues to grow. El Paso ended the year with a 83% gain.

At our No. 1 spot is Cabot Oil & Gas (COG)
Cabot Oil & Gas is known for their vast network of exploring and producing natural gas, as well as a little bit of oil. The company is currently expanding and venturing onto new endeavors. Cabot Oil & Gas currently has an open project with Marcellus Shale, operating in northern Appalachia, which is producing natural gas. There are also mass operations in the Rockies and the Gulf Coast. As of today, this company is one of the earliest and biggest players in the oil industry. Cabot Oil & Gas is projected to grow to $2.95 per share in the year of 2012, up from $2.74 per share this year. Cabot Oil & Gas ends 2011 with a total gain of 90%.


Watchlist 12/22

Published by in Blog, Watchlist on December 22nd, 2011

CIE
Cobalt International Energy, Inc. (CIE) was a major play in my watchlist today, even though I got too impatient and took my profits quickly. The news have been overwhelming from big names such as Forbes, which potentially adds more liquidity to a stock that has broken it’s previous high. Hopefully it cracks 16 for another potential long.

PCYC
Pharmacyclics Inc. (PCYC) was on my watchlist yesterday but didn’t end up playing it. Suggested by InvestorsLive on a possible short opportunity in the $16 range for the market open.

BTX
BioTime, Inc. (BTX) showed great buying momentum today. The hammer-like candlestick means it closed near it’s highs, but also a weakness from the previous momentum. Seeing how it tests the $16 range. Possible afternoon fade.

HERO
Cracked the previous high. Potential long, aiming for .50 cents if it decides to test resistance again at $4.85.

EP
Lot’s of hedge funds are bullish on this stock. Might ride the way up when it pops resistance or on the way down if it fails the third test. Probably won’t play it.


Stocks Rising on Unusual Volume

Published by in Blog on December 21st, 2011

To begin, we’re going to look at Nice-Systems (NICE) who is a provider of solutions that makes it possible for enterprises and security organizations to view different interactions, transactions and surveillance. As of now, the stock is trading up 1.6% at $32.41.

Average Volume: 226,569

Today’s Volume: 465,000

Volume % Change: 333%

Prior to this timid breakout, NICE was at a low of $31.26, heavy volume recently hit as it’s starting to catch a nice bid today. Those watching the market should most definitely keep an eye on this stock and there appears to be a steady uptrend. The way things are appearing now, this is looking to be a great investment. In recent days, shares of NICE had a day where the volume was down roughly 716,500 shares, bringing the near-term bottom of the stock around.

***

Venturing on, we have one of my favorites, Inhibitex (INHX) which has sky rocketed over the past month. Inhibitex is a biopharmaceutical company which focuses on the development of differentiated anti-infective products to prevent/ treat serious infections. As of now, the stock is trading up 8.5% at $11.33.

Average Volume: 2,627,890

Today’s Volume: 2,977,000

Volume % Change: 115%

Inhibitex Inc

As you can see from the chart above, the stock is literally soaring and has become accustomed to new heights. From what I can see, INHX is beginning to trend back above its gap down day which was at a high of $10.45 on extremely heavy volume today. I will be checking this stock periodically and looking to see that the high-volume has sustained, thus signaling that the stock will continue towards it peak of $14. At the lowest point last week of $5, INHX bounced back and is currently on a 100% gain, profits are on the rise my friends!

***

The last stock we are going to take a look at is ADA-ES (ADES) who develops, implements and offers environmental technologies and provides equipment and specialty chemicals that allow coal-fueled power plants to meet emissions regulations, enhance existing air pollution control equipment and so fourth. In the past few days, the stock has been trading up 10.8% at $22.15.

Average Volume: 83,400

Today’s Volume: 153,000

Volume % Change: 333%

A major breakout has occurred today, seeing how the stock has cleared some past overhead resistance which was occurring at $20.97 on some very nice, heavy volume. If ADES can hold above $20.97 at the close today and perhaps toward the daily highs, this stock will surely trend toward it’s March high of $24.92. I see big things happening for this stock in the near future and some rather lucrative profits.


Watchlist for today

Published by in Blog, Watchlist on December 19th, 2011

A lot has happened these past few weeks. I continue to plan ahead and prepare for the months to come. I recently just started watching the DVD collection by Timothy Sykes (one of my favorite traders) and there has been so much learning going on. Today I managed to finish the Pennystocking DVD while jotting down a couple pages of notes. Tonight I spent some time creating a watchlist for tomorrow. There were a lot of technical stocks I didn’t mention, but I don’t want to go hardcore just yet. I just want but to scratch the surface and get a feel for it.

ISTA
This company has been experiencing a hostile bid from Valeant Pharmaceuticals (VRX) for a while now, resulting in high volatility and liquidity. However, the company announced a $314 million rejection that still remains after the market closed on Friday. The offer will only remain in effect until Jan. 31st as stated by Valeant. A shareholder meeting taking place Jan. 12 and ISTA’s expectations of being a $1 billion pharmaceutical specialty firm could potentially keep stockholders in their positions. The increasingly message board and social media hype has made this stock one of the most to look for once the market opens on Monday. A potential buy if it cracks the 8 dollar resistance level, at which can surge much higher. A potential short early in the market open if it experiences a morning panic due to the acquisition rejection that has left mixed feelings during the weekend. Watching closely for consolidation and afternoon fade.

CIE
Shares up 23% after extending a rig lease to Diamond Offshore (DO). A potential long oil play after a breakout at 11.50. Commodity futures down 1% for Monday, which doesn’t concern me.

GRO
A technical breakout can be around the corner if the stock breaks the 1.50 resistance. Not very volatile in price, therefore not looking for much potential return. Almost no message board hype. Scalping at best.

RRR
Gradual stair-stepper pattern and potential long as it continues to make higher highs. Gapped-up ridiculously with a surge in volume last trading day with A LOT of news coverage.


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