adap

Frantically writing and building lists, and trying to manage them, all day, and now, thinking "I really ought to pick a stock tonight ... but, how?" Deciding to go to the scan for Extreme Picks, and then look for ... something. Signs of an advance.

That would be ... OK, three soldiers patterns ... or I suppose any kind of bottom ... but those are a dime a dozen ... and I'm sometimes not sure how meaningful they are. Quickly scrolling through, as it turns out, a fair number of charts ... and then finding something. A gap.

Really, the gap is the signal of signals.

Wben one appears, it presages something. It's not a question of if or whether - I would go that far - but of what. At least, that's true in actively traded stocks coming out of basing patterns ... and I also mean gaps up ... although, in actively traded stocks with basing patterns, gaps down are meaningful. But gaps up ... they begin something. Sometimes that something is over, too, in the blink of an eye, but it's definitely also true that sometimes the gap is just the start of something ... something that's going to last a bit ... and be quite good.

So, twenty or so stocks, and then a gap. Just nudging up. Hard to see on the chart ... but I could see it. I took a closer look, and it looks really cool.

 

It would be a very reasonable place to buy, the bottom of a red bar, at the most microscopic scale, with a very comfortable, very close stop which is basically this morning's gap. Trading is rather placid, but it's a four dollar stock, so getting in for a few hundred shares shouldn't be a problem - or out again, if necessary. Basically 100% positive news, whether it's mind blowing or not, and a couple of good signs in the financial numbers, based on just a glance at them.

It is true we always have to consider - and certainly all the more so in a situation like this - whether the company might go into bankruptcy all of a sudden, not that it looks that way, or do a reverse split, not that it looks that way, but if one of those things happen and you have a large part of your money in this, it would be a hassle. And I don't know enough - or like it enough - to want to make a large commitment to it - I wouldn't want to, even if I could ... but I'd probably be inclined to place a bet, if I could do that.

I place the target at $7, with $9 also looking interesting, and I have a plan for updating that as the situation develops ... perhaps tomorrow, perhaps over the course of a number of days.