Some individual names are in full "melt up" mode. We started Telestone Technologies (NASDAQ:TSTC) last Wednesday, with only a starter position of 0.9% allocation - price $19.70s. I was hoping for a pullback to $19.00 or below to add to the position - laughable.
I keep waiting for some meaningful correction in Telestone Technologies (TSTC) and it just is not happening. Each time the stock hits any sort of support, it immediately rockets up - and I grind my teeth watching it. Therefore, with the drop the past 2 sessions, including nearly 5% today I am going to begin a starter stake of 0.9% exposure in the $19.70s to at least have some skin in the game. Much like some other issues I have added of late I am hoping it falls so I can add more at cheaper prices, hence I would not mind losing money on this first tranche.
It's not even a week later and the stock is up 21% in the $23.80s and already grew to a 1.1% allocation. I am not going to be greedy... if you annualize 20% in under a week... well you get the picture. I will sell almost the entire position just over $23.80.
The stock is in breakout mode so it certainly has a chance to keep running as small cap Chinese stocks are once more the center of attention, but the stock is nowhere near any support. With these very strong charts I start using the 10 day moving average - which is where TSTC falls back to on "corrections" ... and it is now nowhere near the 10 day which is under $20.50. We'll try to buy it back on any pullback (I suppose something under $22); if not - other fish to fry.