I would wait until 10:30am tommorrow and see where its at. I think its going to throwback a little and then try again. However, if it doesnt throwback then it could double from here in say 5-30 days. In the past it took that long to double with worst fundamentals then it has now. It looks to me like its been basing since December of last year. The SPY is filling the gap and the market is ready to move higher. This thing can explode higher, but I would be patient to see where it goes. If you see it at 10:30am climbing over 7:21 on a fat white candle then I think that will serve as your notice to buy. Wait til it gets to 7.30 on volume. I think traders are going to look at this like a single digit stock that can climb like Amazon when it bottomed in the single digits way back when. It was 135 dollars last year so they will think it can at least get to 20 maybe 40 and they wont be looking at some fundamental sheets. They'll just buy it.
Thks Retail. I purchased LVS Jan./2010 $17.5 over a month ago and doing very well. I plan to purchase calls for DRYS. I also purcahsed LEAP calls 1 month ago.
My focus right now is single digit stocks that had traded multiples higher the year before. The logic I have is just what I said about the tech stocks in 2003. I think a lot of these single digit stocks still have room to run and traders will scoop them up.
Im going to stick an xls file of stocks I found through a screener in my journal. The criteria is stocks between 1 and 10 dollars with a volume that averaged the last 2 weeks over a million and whose 52 week high was at least 10 dollars. I came up with 150 names. Im going to go through the list and see where I can find a bullish setup
See the method to my madness Its all about trade and risk management. My trade rules state that I cannot start a new position until 10:15am and for good reason. I knew if it couldnt hold above that 7.21 line then we would see better pricing later on and right now we are seeing that better pricing. Most breakouts do fail. After the excitement of the morning wears away a little, then we figure out the true pricing. Now I think it might be retracing to that large cup at 6.97 and then buyers might step in, however, Im less confident seeing that it failed my buy-in point.
DRYS is one of those stocks that just doesn't move. you can put a little money into and just wait with it.