Almost the Holiday weekend? What are the planned activities for everyone?
You Would Think I Like This I am just impossible to please I guess! Either I am whining about a position that went the other way of my trade or I get nervous looking at this updated chart of my buy FURX (click for larger view): After today I am now up a touch over 14% on this trade. Another huge candle and buy volume once again was very large.
So what's my problem?
When large moves up happen on higher than normal volume, but spread out and longer duration, that usually means someone knows something, usually good. Heavy duty accumulation and big price swings near term usually mean someone THINKS they know something and that is a bit more dangerous. This spot just got hard to get away from!
It was 80 degrees here today, but after all the rain we had is was super muggy and heavy. Felt sort of sticky.
Today is loyal reader Gawains' Birthday! Happy birthday sir! I hope you are having some fun.
Tuesday Chart On Sunday night during homework I came across over 50 stocks that showed up on my screens in the PPT. usually I am screening for names that are showing a hybrid oversold condition, and they may be technical oversold as well. After a few down days you sometimes get a bunch of names and after a run up maybe you may get 2-4 names. I run a few different screens using other watched items like unusual volume or news events. In the end I put together a list and run through the charts to see if anything looks good.
One stock that came up as both hybrid oversold and had a very large volume score was Furiex Pharmaceuticals (FURX). On Friday the stock showed volume that was far and away larger than anything since last July. The stock printed an inverted hammer candle on Friday, which can be a reversal pattern if a downtrend has been in place. I liked the look of the stock and I have no idea about the company at all (can be hard because I work in the industry) so I put it on watch.
Candlestick work is not a 100% guaranteed kind of thing, more a of a guide and a trigger alert. On Monday with the general stock market getting hammered, FURX made a nice continuation candle with another small move up. This served as confirmation for me to think a buy was a good percentage play. I put in my order last night and it was filled this morning at $14.18. FURX closed today at $15.14 for a solid 6% move up. Here is my annotated chart for FURX (click for larger view): Sometimes things work out. I probably should have sold to lock in a nice win, but this could have some more room to run, maybe to $15.50. We shall see.
Hockey Time? I am not really into Hockey, but the Boston Bruins are a game away from going to the Big Show. Last night goaltender Tim Thomas made a save that was spectacular (hat tip Kid Dynamite):
