Review of Open and Closed Positions:
No open positions at this time
LQMT (Liquidmetal Technologies Inc): I exited my position on 9/1 for over a 30% total gain, riding this one from $.28 to $.37. I still like this one long term, but it’s hard to pass up a solid 30% gain. I locked it in and I’ll look to re-load in the $.30-.34 region if it pulls back. This one performed just as I expected moving into the upcoming iPhone release. History shows that this stock tends to run-up into these events every single year, and this year was no different. If the event passes without any substantial news regarding LQMT & AAPL, then it will probably retrace a bit, at which point I’d scout another potential entry. The catalyst would then be a bet that the CEO could land a deal with a big-name company like Tesla instead. As mentioned previously, one of the biggest risks of holding securities like this are financings that dilute value of shares, but with such a large cash position, the possibility of that is unlikely. Low risk with massive potential reward.
ROX (Castle Brands Inc): I stopped out of my ROX position yet again at $1.37 for a 6% loss. I still feel like this one will bounce up toward $2 within the next couple months, but I just can’t continue to hold as it bleeds out. Every single day it feels “heavy”. With each bounce comes an equal or worse drop. A few days ago, the chart formed a nice symmetrical triangle, but it seems to be breaking below the ideal level I’d like to see it at. It just put in a red candlestick today and is approaching the 200-day moving average at $1.34. If it breaks below that, it could wash out once again and I don’t want to continue riding it down. This is probably something where a news event will send this one soaring soon and I’ll be kicking myself for exiting early, but I just can’t hold a bleeder in the portfolio. If this builds a support level and proves to me that it can hold, I’ll consider a re-entry.
New Stocks & ETF’s to Watch
LABD (Direxion Daily S&P Biotech Bear 3X Shares): This is an ETF that trades 3X in the opposite direction of the biotech index (IBB). In other words, if the biotech index goes down 1% then the value of LABD shares will rise 3%. Looking at the chart, it seems like IBB is topping out in the $335 region. If it continues to hit its head on that region, it might be worth taking a position in LABD for the dip. Lots of room to fall if the floor drops out. Stop loss would be if the IBB breaks through $335 resistance.
CDTX (Cidara Therapeutics, Inc.): Even though I think a short-term top might be forming in the IBB, I’m still scouting this biotech stock for a run-up into Q4. My ideal entry price is closer to $6, but I’ll have to see how this one performs over the next week or so. The company has Phase 2 Date For Candidemia due at some point in the last quarter of 2017.
APRN (Blue Apron Holdings, Inc.): Recent IPO that has fallen from $11 and is starting to build a base above $5. Short float is nearly 50%, so this one can get frisky if good news hits and/or buyers start coming in. Clear-but patterns like this allow me to enter at support, but exit quickly if that support breaks. There’s lots of potential to the upside if this one can get going.
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