Robert Edwards'  Instablog

Robert Edwards
Send Message
Contrarian daytrading technician who specializes in micro scalping of stocks (using 1 minute bar charts), swing trading of stocks overnight, weekly stock option premium selling, pre-market and post-market psuedo market maker and stealth trading activity, and selling commodity option strangles... More
  • Stocks For Trading: TSLA, BITA, TWTR & ANGI; Watching FEYE  1 comment
    May 23, 2014 9:17 AM | about stocks: TSLA, TWTR, FEYE, ANGI, BITA

    TSLA Bottomed Post Earnings and Just Keeps Rallying

    On May 11th, I wrote an article, click here, recommending TWTR, TSLA, and ANGI. This was just a couple days after TSLA had sold off post earnings to just under $180. In that article, I explained how TSLA was in my buy zone. Well, it has since rallied straight up towards $205. Check out the daily chart here:

    (click to enlarge)

    I predicted TSLA would be a buy in the $165 to $190 buy zone, before it ever fell to those prices. Every dip to $190 and below turned out to be a buy! And if it was true in the past, all the more in the future! When I predicted $190 and below would be support, there was no chart action to confirm that $190 and below was a value area for Tesla Motors. Now there is plenty of chart action showing how well TSLA is supported at $190 and below. The last few days TSLA has even filled the large gap under $200, that occurred right after earnings. This is extremely bullish action. All dips now towards $200 and below are a buy! TSLA is probably the best stock idea I have right now!

    Bit Auto (NYSE:BITA) Has Recovered To Above $40!

    I call BITA the mini-Tesla. They often seem to trade in parallel. For anyone who doesn't like trading in a $200 stock, they can still win big by trading Tesla's little brother, Bit Auto (BITA). Check out the daily chart of BITA below. I have been recommending buying BITA in the low $30 for a couple months! It has worked out great:

    (click to enlarge)

    Twitter (NYSE:TWTR) Is Finding Support Under $31

    (click to enlarge)

    My last article mentioned how TWTR appeared to bottom on the dip below $30, closing at $30.66. TWTR rallied to above $34 just three days later. I was fortunate to sell in the premarket above $34 on May 12th, when TWTR topped out. I have been buying on dips during the entire 8 day selloff since. Although TWTR keeps falling, I have yet to hang any shares on the dip. I have been successful because I scale-in buy, averaging down, and then take quick partial profits on every 15 to 30 cent rally or more. Though I have been profitably trading TWTR this way, it can at times be quite frustrating. Lefty6x6 said it best when he blogged, "Trading Twitter is like trying to push a marshmallow up a hill". True indeed!

    When TWTR traded to the low of $29.51, it closed that day at $30.66. However, it gapped up the next day, opening at $31.48 and then only trading down to $31.13 that day. Well, a couple weeks later, after topping out around $34, TWTR finally filled the gap yesterday when it traded down to $30.52, and then bounced back to a high of $32.25, finally closing at $31.52. To have such a strong rebound off the lows yesterday is quite impressive. I would have preferred TWTR closed above $32, but it at least closed above the opening price of $31.33, and is back in the mid $31s. If TWTR can stay above $31, it should now work back towards $34. Hopefully it can take out the $34 resistance, and begin filling the large gap area from $36.10 to $38.75.

    ANGI Remains A Buy at $10 And Below

    (click to enlarge)

    Looking at the weekly chart of ANGI, one can see how ANGI had support just below $10 in the past. That support continues today. I am looking for a spring back to $12 in the near term, and eventually much higher prices. This stock is on the speculative side, and trading it is not for the faint of heart. Keep your position small and take partial profits and you should be fine!

    FireEye (NASDAQ:FEYE) Appears To Have Bottomed

    (click to enlarge)

    It is rare to see a momentum stock fly so high to then crash and burn, like FireEye (FEYE) has done. Look at the weekly chart above and see the meteoric rise from $20 to $97.35, to then be amazed by the drop to $25.58. In the past two weeks, FEYE has bounced well off the lows and has likely bottomed. I would be a scale buyer in this stock and believe all dips are a buy! Either through a buyout or improving fundamentals, FireEye should "Rise Like A Phoenix" from the ashes. Because the large share lockup was ending, FEYE began falling in price, and the momentum got carried away to the downside. This is the kind of stock that can bounce $20 in a week. Do not be surprised if we are trading in the $50s in the short-term. I am going to predict that this stock will see $60 before it sees $20. So at $32, it is showing very good value. I have not bought any shares of FEYE since it bottomed, other than for a momentary scalp trade. I have recently been hoping for a drop into the high $20s or lower to get in. As time goes on and stock continues to climb up out of the hole, a move much under $30 becomes less likely.


    The thoughts and opinions in this article, along with all stock talk posts made by Robert Edwards, are my own. I am merely giving my interpretation of market moves as I see them. I am sharing what I am doing in my own trading. Sometimes I am correct, while other times I am wrong. They are not trading recommendations, but just another opinion that one may consider as one does their own due diligence.

    Disclosure: I am long TWTR.

Back To Robert Edwards' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • UncleSam187
    , contributor
    Comments (238) | Send Message
    There are quite a few "momentum stocks" that are crashing and burning lately... maybe not as large a % as FEYE, but...
    FUEL, LOCK, DATA, SPLK, DDD, XONE, RKUS, to name a few..
    disclosure: the only one i've bought is RKUS
    23 May 2014, 10:09 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.