Rowdy's FDA Plays ... (and pinch plays, too)... - Page 7

Yeah, the "other board" has been buzzing about it since about 2 weeks ago. I'm trying to just stick to pennys or stocks under $1. If I can master those, the big board pinchers should be a cakewalk.

Feel free to discuss them, I'm just not trying to find them (or scan for them). WNR isn't ready, but should un-pinch pretty good when it is. On the other hand, it might be another SSW, which is another good reason to flip these pinchers or take profits as soon as you can.

I wouldn't consider a DENN a pincher right here, but it definitely formed a pinch in early March. This chart shows the early March time-frame:

http://stockcharts.com/h-sc/ui?s=DEN...d=p62788723030

There's a lot of pinches that formed in early March (stocks included) when the markets bottomed out. You could plug in $INDU (DOW), $COMPQ (NASDAQ), $SPX (S&P 500), or even XLF (which is a Financials sector-based fund) into that chart and see the same pinch occurring. The PPO is at a negative or oversold extreme while the ADX is at a positive extreme. The ADX indicator is not formulated for a negative (or minus) value, but above 40 is considered an extreme trend and difficult to sustain for a long period of time. Even when the Dow was plummeting, the ADX was rarely above 40.

DENN doesn't meet this "pincher" criteria currently, but it is very oversold and quite a few indicators hint that it could be turning up right here.

First, your assessment is correct; the only thing I would add is the -DI pinch that occurred ~ May 1st. Look at this link and notice how the -DI line on the top ADX pinches against the +DI line on the bottom ADX. That's a sell signal and as you can see, it's a good time to exit.

http://stockcharts.com/h-sc/ui?s=HGS...d=p32245211052

In regards to the latter part of your post, I've been trying to determine exactly how effective the 10EMA is as a buy signal or stop point. It works great for weekly pinchers but for the daily pinchers, I don't like it. It's a bit of a gamble since I don't have real-time level 2 most of the time, but I'm leaning towards just watching these setups for a volume spike and jumping in (as long as the PPO is bullish and there is divergence between the PPO/ADX). Hopefully, I'll post how that works out soon. I don't hold these very long due to the total disregard of fundamentals, so I will always exit on either a daily or intraday -DI pinch. I exit any setup when a -DI pinch occurs.

It's hard for me to comment on stops; I use mental stops and alerts for penny stocks because they're so volatile. I restrict the size of these positions based on volume and other factors, but I can pretty much lose all of these positions and it won't really hurt my capital too much. You just have to figure out what works best for you.

Potential Pinchers this week

Some new, some from last week. I like these 4 especially:

SNMX
SNBP
WGAT
WSTM

and these just need the volume:

CSKH
BEEI
DTMG
LUNA
GST
APSO
IMXC
AKYI
ANDS
FGOCE
EEE
YTBLA

Good Luck.

BLGM going nuts today, I threw a little at this.

I saw a block of ~80k go through at .062 and got in at .064. The bid and ask was going nuts there for a bit.

Well, it's setting up nicely on the daily chart, but I'd wait for more Accumulation for a swing trade position.

The 15-minute chart shows a -DI pinch, and the 1-minute chart shows a +DI pinch.

So if I wanted to flip it today, I'd go off the 1-minute; if I wanted to get out Friday, I'd got with the 5 or 15-minute and if I thought it had swing-trade potential, I'd go off the daily.

Just be aware that using an intraday chart for a swing -trade is a bit more risky (more like predicting or guessing...). I'm trying to work the kinks out of this type of trade myself.

I also have this bad habit of not referring people to support and resistance...

There's more resistance than support on the daily and not much of either on the intraday in this range, imo.

Intraday -DI pinch on YRCW; looking to pick up more here mid-to-low 1.80's.