Hall of Fame TASR - IPO run

TASR was one of those stocks that made millionaires out of the traders who know how to hold and how to sell.  Most people did not.  TASR made two distinct runs.

The first was its IPO run:
ripped out of the IPO new high,  Took a revisit and then was off to the races.  It was a very jumpy stock and would be hard to ride, but for those who did.

After making a new high

Here's a big warning sign that the IPO run is nearing an end.  Notice the big volume breakout could't hold and it got stuffed on a bigger volume.

 More warning signs.

TASR attempted to rally off the dip but, it was held back at the same levels it previously was accumulated at.

And like Many IPOs, TASR suffered the Fly and die fate.

But a 7 to 20 run  not bad.

"The Perfect Speculator"

I recently read the "perfect speculator" by Brad Koteshwar.

  Highly recommended, but rather than go through a "review"-- which there are already plenty of on Amazon.   Essentially, the ideal setup is something I already look for, which is a powerful move followed by an early base:

Then the "Perfect Speculator" trails the stock on weekly charts.

The one example is TASR. I thought I would chart  the Trade Journal entires from Tasr.

10/3/03 Entry 1:
Scot1and:  My slingshot entry would have put me in 2 days earlier

Entry 2:
My entry would have been 3 days earlier-- Slingshot on big volume.

EXIT:

Hmmm,   nailed the top?   I call B.S.   The  problem with this sale, is that our trend follower quits trend following and sells into exuberance. 

Consider the previous "blow off" -  =60% in  3 days doesn't trigger a sale?

Conclusion:    There's a lot to like in this book,  just don't use the example trade as the template.

Putting the pieces together to capture a $53 in under 2 Months.

Let's see if we can dissect some power moves so that we may capture these in the future. 

Netflix January 14. 

Netflix makes an earnings gap and then tests the gap.  

It then produces a surges which allows a Fishhook entry--High volume move, shallow pull back, thrust past surge close.

 If a stock is going to surge it is going to obey a shorter MA and NFLX did so beautifully.  

This trade would have produced gains over $53 in under 2 months.   Not bad. 

Ingredients, great earnings, high volume,  Fishhook entry , trailing moving average. 

Hall of Fame -- How QCOM was Born

Everyone knows what happened to QCOM in the year 2000.  Here is how the legend looked in the infancy of its run. 

In February QCOM was very much trading sideways.  on the 22nd it surged.  It then consolidated but held the 10day. on the 27 it had massive volume, followed by even heavier volume the next day. 

Take aways

• When a stock has a strong move and consolidates without pulling back it often has more in store
• when a stock follows an initial power move with an even stronger breakout there is some serious momentum in the name. 

Big Gain Stocks Hall of Fame - RMBS 2000

I suppose you never forget your first-- RMBS was mine.  (note These prices follow a 4-1 split.)

I had originally bought in the 60s. I sold 3 months later at $200,  $50 on this chart. In doing this I misplace this badly and left untold fortunes on the table. But still, I was 19 and there are many lessons still to be learned. 

Characteristics

• Theme -- semiconductor technology that was game changing.  Follows on the heals of QCOM.

 volume picked up on pre-surge.

• 2 week Periods of consolidation right on 10 EA following pre surge. 
• 4 weeks in a row.
• Vicious pull back and then reset. 

Big Gain Stocks Hall of Fame-BVSN '12

As part of my big gain hunting, I've taken a look at some of the best performers.  Extreme momentum movers. Because anything else would be boring.

At the end of 2011-early 2012.  BVSN made a monster move 500%

Surge Characteristics.

• Early volume surge

• over 2 week consolidation held over 20 EMA

• Another volume surge on massive volume. 

• Low Float 4.5M

• 20 MA holds 6 times and then the plunge. 

• 20 MA then acts as resistance 

THEME?
BroadVision is an online commerce and social networking solutions company. 
Was promoted by  National Inflation Association .. Ironic right?

LESSON
BVSN would have been easy to dismiss as a pump and dump and it likely was. But early shorts got smashed nonetheless.   This was a tradeable move.  We can look for secondary entires at support. If a magic line holds, buckle up and buy.