late day buying come in for the past several trading session... this
is typical of a stock getting ready to break out.. she sold off from
$18 some 4 months ago.. she re-visits $18 ++ over the next 8 weeks..
Options are good vehicles if one expects a major move on the stock..
eg NFLX went up $100 and the call options $100 out of the money
delivered 1000% return in one day... bid and ask spreads sometimes tell
the story.. mm keep the spread wide to discourage buying if a major move
is anticipated... imagine ASPS opening UP $ 15 day after the earnings..
Based on technical analysis. Projections show her closing at around $ 23
just before earnings. It gets a bit tricky after earnings due to LOW FLOAT
they may trap the shorts BIG time if earnings don't disappoint ( model shows as
much as a $17 UP swing to $40++ in this case) or they may give it one
more sweep down to 17.50 to confound the longs and shake them out..
Trading is ALWAYS .... (1) Impulse # 1 (2) Gut feeling stemming from informal
tech analysis (3) Formal Technical analysis... most folks just operate on
(1) and (2) alone.. I always include (3) ... and YET wrong at least 1/3 of the time
stck has run from 12ish to 20 ish... a 70%++ move in just 5 days ..it needs
a breather.. BUY in the 17.50 -18.50 range... she moves to $ 24 ish in 10 trading days
or less as per my projections....
VIX is now ready to roll.. after several years of dormancy.. so much bearishness
on UVXY that it begs for a contrarian view... my model shows UVXY hovering
around $ 75 by year end... shorts may want to stay away from this one...