First,I have 2 stocks on steroids. One is GMCR(Green Mountain Coffee Roasters Inc.) and the other is IOC(InterOil Corporation) . I looked around on the web trying to find a bit of news/rumors that propelled these 2 guys so high and so quickly. I did not find anything tangible for GMCR and found a little bit on IOC.
So GMCR is basically running on drugs. It is like CROX in 2007 which saw a massive short squeeze. Massive short squeeze happens when inexperience shorts keep hammering a stock on drugs. Yes, the shorts were right about crox. However, their timing sucked.
GMCR might not tank like CROX when the flood gates open. But it will come back down for sure. Once it starts to go down, it might drop quite a bit since some shorts and the profitable/trapped bulls will pile on each other looking for exit. I will be looking closely for good intra-day short entries in GMCR. I would advice against swing shorting into it since it is against the big trend.
GMCR
IOC has signed some kind of deal with Government of Papua New Guinea. I did not look much into the deal. Even if the deal is very solid, it might have shot up a bit too fast. I will trade it the same as GMCR.
IOC
Secondly, I have 2 other stocks that are showing some weakness. One is Amazon and the other Bidu. These 2 guys are very solid companies. But at their current valuations, they are a bit stretched. As we can see from their charts, they have been kind of sluggish lately. This is especially obvious in BIDU.
AMZN
BIDU
Trade Safely
Extremely hard work and a few solid trading books are what you need to become a successful trader. There is no shortcut! By the way, you can always check out my portfolio, in which I post my trades real time.
Would you like to become an active trader like me? Would you like to receive the latest trading ideas or other updates from my blog? Then join hundreds of others on my mailing list below. It is totally free and easy to opt-out.
Loading ...