THE GUN – A POSSIBLE TRADING TRIGGER ABOUT TO GO BANG
I mentioned this one last week. Symbol is TDSC. I'm looking for an opportunity to get short the stock and I think the time may be approaching. Market cap: $1 billion Float: 20 million Percent short: 9% Average volume: 116,000 Further commentary of the chart: click on chart to...
PANDEMONIUM HAS BROKEN LOOSE – 5 OIL & GAS NAMES THAT HAVE EXPLODED RECENTLY
Not in Madison Square Garden between the Iron Sheik and Hulk Hogan. But rather, in a lot of micro to small cap oil and gas names. There is certainly a good deal of speculation taking place currently in these names. I would imagine that a great majority are going to sink like rocks eventually, making for an outstanding short selling opportunity for all you Indiana Jones adventurer types out there. I do believe that over the long-term there are some absolutely monstrous opportunities to profit in the oil/gas sector over the next decade. A lot of the micro to small cap names in the oil/gas sector are at the same stage that micro to small cap names in the gold/mining sector were in the early 2000's. It paid to hold onto gold/mining stocks at the beginning of the last decade up until present day. It will also pay to hold onto certain micro to small cap oil/gas names over the next 5-10 years. Nobody ever got rich by taking their profits early. Here are the 5 names that have made a mockery out of the bears over the past few days: click on the charts below to...
WATCH THE MICRO-SMALL CAP OIL & GAS NAMES FOR TRADING OPPS
As the trend towards increasing oil prices accelerates in 2011, there will be a tendency for traders to gravitate into more speculative names. A watchlist of micro-small cap oil/gas names should be a part of every traders daily/weekly or monthly routine. I'm already seeing the trend exhibit itself throughout the markets. Some of the largest gainers last week were moon shots in the micro/small cap oil and gas sector that took off from well established bases. This type of action will occur whenever a psychological price barrier ($100 crude oil) is breached. I've established a watchlist of a few micro-small cap names and passed it onto subscribers last night. I will be running scans on the market daily to turn up more opportunities. I think we're closer to a beginning in this type of market action as opposed to an end. Get it while the gettin' is...
*VIDEO* THE GUN – A TRADE IN OVTI SERVED ON A PLATTER
Please make sure to enlarge video to full screen by clicking the arrows located at the bottom right hand corner of the video...
THE OPPORTUNITY THAT IS BAKKEN
The Bakken Formation is an oil reserve that occupies parts of North Dakota and Montana. It is one of those things that everybody knows about, yet nobody really knows about. It's very well known inside of the oil/gas community, yet for the most part undiscovered amongst your average investor class. I'm assuming this is because a majority of investors are more focused on risk/reward plays such as gold, silver, popular tech stocks etc. that tend to cater more to their masochistic, self-destructive side. I'm a relative newbie when it comes to the Bakken Formation, but have been reading everything I can get my hands on regarding what has become one of the larger oil finds in recent decades. My thirst for knowledge about Bakken isn't because I want to be geophysicist or have an intense passion for the oil markets, but rather due to the fact that our largest and most profitable current holding is directly involved in Bakken. Therefore, I am eager to learn in order to grasp the full realm of possibilities with our current holding, as well as any potential future investments I will make involving Bakken exploration and drilling. One could write a book about the history, revised estimates over time, technical difficulties in recovering oil and technological advancements that allow for recovery in Bakken. I don't have the time nor the patience to write a book, and am probably under-qualified to do so. That's why I am going to offer a cliff notes version of the reasons why I feel the opportunity in Bakken is so spectacularly profitable. Whether past, present or well into the future, there is no shortage of opportunity. The possibilities that Bakken offers in terms of oil reserves have been known for decades. However, the technology has been absent to recover the oil from the rock formation. Advances in technology have been increasing at a fantastic pace due only to the fact that a surging price of oil has made the increased allocation into research and development by oil companies a top priority. It's a lot easier to justify hiring a bunch of expensive engineers to discover ways of getting oil out of an extremely difficult formation when the oil you are going after is priced at $100 as opposed to $30. Now that technology exists to recover the oil from the reserve, the question becomes how much oil exists in the reserve for oil companies to profit from? The question of existence and recoverable are two different areas entirely. There have been estimates of 500 billion barrels of oil below the surface at Bakken. However, the recoverable percentage has...
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DO YOU SUCK OR ARE YOU AWESOME?
There's a certain freedom that comes along with not caring. I'm not talking about not caring in a self-destructive sense, where you end up on a street corner with a crack pipe and a $20 hooker. I'm talking about having a sense of detachment from the results of whatever you're doing. There is some real freedom in that frame of mind. I have a difficult time caring for any one business or venture for more than a certain period of time. I become quickly bored as soon as I see that I am successful or even have the chance to be successful. And it's not just my own ventures. I've worked for a couple different Wall Street firms. In the first year at both firms, I was either going to be heading up a new division or being promoted to higher position. In both cases, I ended up becoming disinterested after achieving some level of success. I started an internet advisory service (I guess you can call it that, the word blog hadn't been invented in the late 90's) that became pretty successful. At its peak I had a few hundred members paying anywhere from $60 - $200 per month. The website is here thanks to waybackmachine.org (if any of you know me from this site, holla at me). It was a cool experience that probably could have become a lot cooler if I hadn't become bored with it. There wasn't much competition back then. It's not like the jungle of charts, opinions and blogs that are available on the internet today. I was getting pats on the back from traders around Wall Street. They were my members. They really appreciated me and what I was trying to do with the site. Lots of people did well. I would get "thank you" emails all the time. One guy wrote me to thank me for allowing him to start a business of his own due to his trading profits. That felt good. It didn't make a difference...I still ended up bored. And then there was my hedge fund. I made my hedge fund into the #1 ranked macro hedge fund in the country as of the beginning of 2004. Right after achieving that ranking and being showered with praise, cash and investors fighting for a position within the fund, I suffered two down years in a row that made me hate my life. Even my hedge fund (my supposed life long dream) became burdensome to me after a period of time. The pressure of having investors breathing down your neck. Having personal relationships with a lot of them and wanting...
TODAY’S THOUGHTS
"Today's Thoughts" is a nightly email that is sent to ZP Fire level members. Once in a great while I get a wild hair up my ass and decide to post them on the blog. Here you go: An important article to read on the blog tonight about core strategies versus periphery strategies http://www.zenpenny.com/?p=943 If you are able to develop a good periphery strategy to compliment a strong core strategy then it can be an immense help in increasing the performance of your portfolio. I will be focusing more on periphery strategies over the coming months. Of course, our core micro-cap strategy will always be our "go to guy". However, I think all members will benefit from the trading strategies, watchlists and eventual trading triggers than I introduce here. Our portfolio pulled another yawner today. We have been fortunate in that we haven't been bashed by the recent volatility in the market...that's a big positive. Being involved with a temporarily boring portfolio is much better than being involved in one that is losing money. As we approach the end of this trading week, I don't see any short-term or longer term setups that are tradeable at the moment. I could give out less than premium potential trades in order to satisfy the "trading hunger" that is within all of us...but then that would make Zenpenny like every other site out there...and that's not what I'm aiming for. I will only pass along trades when the potential risk/reward setup is such that it demands our attention and our dollars. At this juncture, none exist...and I ain't in the mood to try and squeeze some juice out of dry lemons. Not my game...and it shouldn't be yours...