I don't want anyone to get screwed by this one. They're on the verge of bankruptcy, and may not be around by the time you start trading tomorrow, but AGA follows this pattern to a T. I wouldn't be surprised to see it run to 2 or 3 for an easy double. I have no position yet, and do your own dd cause it's kinda thin at times, but 600k today makes it qualify I guess.
On april 4 I believe by looking at the chart I finally bought. It had traded over 600k shares or so by 11 I think. I don't remember the exact particulars, but I must have seen higher than normal volume, and when it made a new daily high I bought. I have my data from penson. I obviously missed most of the move, as It has since doubled from where I bought, but you can see the high volume bottom. It seems I bought 4k between 2.1875 and 2.25 and 1k more at 2.5 I sold all but 1k at 2.625 so that's just a little less than a half pt scalp. I sold the rest at 3.75 a few days later. I wish i remember my rationalle at the time, but thats days a way, and a million trades inbetween. As for aga, Im gonna give it one more day and then give up. On these bankruptcy ones, there just doesn't seem to be any bounce, just like pta. But look at rog. I missed it today cause I was buisy with other trades, but quite a nice move. SAme pattern. The other one IM stalking is autn, but since it's an ADR, I don't think I'll see the main move since it will happen overseas. But I love that volume a few days ago.
I just entered aga for my first scalp attempt. I was filled on 5500 at 1.03. I will add more if it starts to move up. Probably up to a 10k position. This is the first day in a while that it's been green, but I doubt that i'll hold more than 2k overnight. My stop is a nickle under the low of today. As always, this is not an endorsement of this stock, but rather an opportunity to witness this pattern in real time. Please do your own dd, as this stock is illiquid, and very likely not to exist by next month. I can't read this specialist as it is too illiquid. Im probably due to loose on one anyway. CDO just barely let me out profitably, and I'm like 8 and 0 or something on this thread on this pattern. I doubt the true odds are that great.
Im still long all 5500, my stop is .9, or the low of tomorrow if it's higher. There was constant selling in that a 5k buyer wouldn't be able to lift a 5k offer, but on the upside, today was the first day since I started watching that I saw a single buyer step up, even if it was short covering, and it closed green. I will add if it goes over todays high. Best of luck.
I liked the action in aga today, I took another 2500 at the bell for 1.04 i think. That makes 8k total. I'll probably add 3-5k more tomorrow if it can get over 1.06 or so.... And scale out starting at 1.4-1.5, .9 stop.
Should have done better. I took another 3k at .2 today on the "breakout" I then sold all 11k for a .38 or so average. I made about 3100 after commish. I should have gotten more, but was snookered... I bet it still goes to 2 by the end of the week. I think im going to stop posting these cause the pattern should be very obvious by now. Has anyone else in this forum played any of these? I would like to know that I made someone some money.
Praetorian, I played AGA as well today (thanks for the "heads-up" on it yesterday. Took 2k at the open at 1.14, 2k at 1.2, sold 2k at 1.44, still have the other 2k. I am very interested in this pattern, also it seems playable on what I call "intraday dumpers", the set-up and volume distribution is different somewhat-but there seems to be a fundamental similiarity (see TUP yesterday). I guess what we are playing is capitulation. You mentioned yesterday, how can this pattern always be profitable. Of course nothing works all the time, but human nature is consistant - and buying when there is blood on the streets is as surefire as it comes.
Here is a scan from http://www.stockcharts.com that may be of use in finding similar plays: "http://stockcharts.com/def/servlet/SC.scan?s=TSA[t.t_eq_s]![t.e_eq_n]![s0,20,v0_gt_40000]![C1_LT_X1,10,C]![H0_LT_L1*0.975]![L0_NE_H0]" It's a new scan called "Runaway Gap Downs" if the url doesn't work.