Monday, April 2, 2012

April 2nd, 2012 - Trade Ideas For (RHT), (THLD), (JVA) & More

On Thursday, Red Hat Inc. Broke out on huge volume from 54$ to ~$61. With such a breakout, the obvious next thought is for the stock to consolidate and give some of its gains back. Looking at the daily and 5 minute charts, we can see that Red Hat has strong support at 59.40. This is one stock to watch for the rest of the week.


The next stock to look at for the week is Threshold Pharmaceuticals. I have been watching this since the $5.19 mark when I missed my limit order by one cent (2000 @ 5.18 never hit, THLD hasn't looked back since.) Green days have been above average and red days have been below average. Has been holding a nice trend line for the last 2 months. Might correct soon, but if anything it looks to go down to the 20-day MA.

Next on my watch list is Coffee Holding Co. Inc. (JVA). Very volatile stock that has seen a 70% increase in a week and a subsequent 40% decrease in 2 weeks. Today JVA hit it's 30-day MA and like clockwork bounced 6.9% up to $11.26. This may be the buy of the week. Stochastics show the stock is very oversold BUT reversing. MACD is still negative, so I'll be looking for it to reverse tomorrow and start climbing back to 0.

Next on the watch list is NetQin Mobile Inc. NetQin was on a tear the last month, up around 60%. The stochastics are currently moving from overbought to oversold territory while NQ is holding up nicely above the 20-day MA. Looking for a way in once the stochastics move to oversold territory and make reversal moves, but only if the stock holds its 20 day MA.

My short stock of the week is Yandex N.V. (YNDX), which is the Russian search engine company similar to Google for the U.S. This trade is a stretch, so I may sit on the sidelines to watch this one and chalk it up to practice. Marked by the arrows are times when YNDX traded outside it's bollinger bands. Each time yielded a next day decline. Today, after hitting $28.00 in the first hour, the stock slowly marched back down towards the higher BB. It may continue this very short term decline, and may continue on down to its 20-day MA, which looks like a strong support level for this stock.

Disclaimer: I have no positions in any of these stocks currently

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