AN OUTSTANDING TRADING OPPORTUNITY WILL ARISE FROM THE TOILET

Posted By admin on May 10, 2011 | 0 comments

I have gotten some questions about my intermediate term system of trading stocks. The next signal I get using the system I will post as a trade update.

It is basically a system that triggers off of range expansions with some volume filters. There are also a couple of fundamental considerations taken into account. Not overly complicated. It works well. Most importantly, it defines my risk precisely every second I'm in the position.

I am currently long this stock using the system for more than a week now:

USAP

I am adding SWSH to my watchlist. They are essentially a toilet cleaning and janitorial service. If you have ever peed in a urinal at Denny's then you have probably seen their products. I believe that a tremendous long opportunity for a short-term trade is developing here as the stock has an enormous amount of trader interest (short sellers especially) that is distorting its pricing. I am waiting for the pattern to develop over the next few days. I feel that the next move, regardless of whether it is up or down, will be a fakeout. The real opportunity will come after that.

SWSH