New feature: DrZ’s 'Green from Here'
Smit Dog's "Biggest Loser" experiment was a resounding success and it has now become a regular feature. These plays with well-defined criteria and proven success using measurable statistics are exactly what I've been envisioning for our board.
We have Biggest Loser with its goal of a next-day bounce...we have Awaken and others with live calls to take advantage of sudden MOMO...and we have asst. mod slulaw and contributors like the cork that keep us abreast of some great buy-and-holders.
So in an effort to fill a niche and offer plays with different strategies behind them, my picks will be made in a series of posts called Green from Here.
With “Green from Here” picks, I am primarily looking at a combination of these factors:
1. Stocks that have established a solid support level, often after a period of capitulation. It might coincide with a chart bottom, but it doesn't have to. Along with technical indicators I’ll watch for things like insider purchases and loans made to the company in exchange for shares – things that hint at limited downside from a particular price.
2. Some kind of driver (news) coming on the event horizon. Real or imagined - often it does not matter!
3. Increased buzz or awareness coming from trading groups and newsletters. Some of the penny websites are notorious for p/d, but hey; if we know when they are going to pump, why not take advantage of it?
Metrics and tracking for this experiment
Because I can’t know exactly when the desired effect will kick-in, I am giving each pick a fairly liberal window of 12 trading days to make its move. Because I consider them “safely plays” (relatively speaking) a pick will immediately be ‘unsuccessful’ as soon as it drops 25% or more (from the picked price) at any time during that period.
The pick will only be considered successful if it rises 25% or more from the announced PPS within the time limit. I certainly expect many to run well past that, but for purposes of quantifying ‘success’ we need a standardized minimum. Also, if I see more room to run once it gains 25%, I have the option to re-call the ticker “Green from Here” from the new level.
In truth, these are similar to the types of HMP plays I’ve called here in the past. I like to day trade and 2-day flip also, but those types of calls are better made by some of the other mods here. Here’s to Green from Here showing there are many ways to play 'em!
AI
