Thursday, April 09, 2009 8:25:30 PM
Okay, notice the SPX broke out today (chart above). What does that mean? Well, technically money should start flowing into it for pure technical reasons and I have no doubt that the index runs into the 900s. However, it needs to break 1200 in order to break the current weekly wave count which is predicting a 5th wave move beginning in May.
Now, I have found three stocks that I am going to focus on.
LDK
SOLF
and the big one I think has huge potential is ILMN. Both LDK and SOLF are under $10 with ILMN at $35. Why ILMN? I ran into it today by accident and was reading all their past 10qs and WOW what a potential. What's even more interesting is it's bouncing right now at the 50 day and someone today bought 1200 May $45 calls at .20. Open interest is only 1000. So, I'm wondering with a $20k investment in an option that is $10 out of the money, what do they know? Well, the chart kind of predicts that price range in the current trend if it only runs to the top of the range. Earnings are April 21st. So, it could be interesting. Low float of 100 mill with 16 mill short. Company makes DNA sequencing machines that are all but putting AFFX out of biz. Very interesting.
It reminds me of when I first got into MRVL. It's the kind of stock you can buy, sell calls and buy puts and ride the thing into a huge profit over time by 'rolling' it. The key to doing that is to use a stock that can move in large ranges but is profitable.
Now, I have found three stocks that I am going to focus on.
LDK
SOLF
and the big one I think has huge potential is ILMN. Both LDK and SOLF are under $10 with ILMN at $35. Why ILMN? I ran into it today by accident and was reading all their past 10qs and WOW what a potential. What's even more interesting is it's bouncing right now at the 50 day and someone today bought 1200 May $45 calls at .20. Open interest is only 1000. So, I'm wondering with a $20k investment in an option that is $10 out of the money, what do they know? Well, the chart kind of predicts that price range in the current trend if it only runs to the top of the range. Earnings are April 21st. So, it could be interesting. Low float of 100 mill with 16 mill short. Company makes DNA sequencing machines that are all but putting AFFX out of biz. Very interesting.
It reminds me of when I first got into MRVL. It's the kind of stock you can buy, sell calls and buy puts and ride the thing into a huge profit over time by 'rolling' it. The key to doing that is to use a stock that can move in large ranges but is profitable.
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