Daily Stock Picks Newsletter from August 12th, 2008
The bullshort chart AFAM, Almost Family, a corrected hard today with a high of $44.40 and corrected to an intraday low of $35.80 for a 24% profit potential in the first day of a correcting bullshort. I don’t usually think about a target price to cover on the first day because I am usually so busy trying to bill my short orders. After the stock starts correcting, I start looking at where it might go.
At this point, it is hard to tell if this will go up a little tomorrow morning or just continue its selling pattern-which is the most likely possibility. My first target price was around $34-35 but it almost got there today.
Look at APII, Action Products Int’l, has the classic bullshort pattern even though it is a low priced stock. A few brokerage firms allow you to short a stock under $5. With the increasing price and volume, I would guess tomorrow is a probable top in the stock price.
I am also watching these stocks TACT, NPSP, TWP and FSYS for possible short sales.
The airline sector really has made a big move and even though the daily charts look good on UAUA, ALK and DAL, I don’t want the exposure of being long airline stocks (especially after a big run) when oil starts to rebound.
Keep your discipline with stop losses and position sizes that are relatively small.
Have a great day.
Mitch King
www.TradeStocksAmerica.com
PS: Saturday, August 23rd is scheduled 1 day workshop at my house. Please email me at [email protected].
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