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SynergyTraderPro.com offers a unique, fully automated online stock trading system focusing exclusively on executive stock purchases that are recorded with the SEC using the Form 4 document that business insiders are required to file when making any type of stock transaction involving the company... More
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  • Synergy Trader Pro February Overview 1 comment
    Mar 1, 2013 9:31 AM | about stocks: VTUS, HA, LPHI, NSPH

    As February winds down and comes to a close we are still left wondering what the markets have in store for us during the next several months. February continued the trend with a slightly below average number of picks on the month. We normally average around 5 stock picks per month and we registered 4 picks in February, only 2 picks better than our historically slow month of January but not terrible by any means.

    This leads me to believe that corporate executives and 10% share holders remain skeptical of this rally and are expecting to see a correction coming in the near future. With the looming budget cut deadlines approaching at the end of the month coupled with the Federal Reserve unable to make up their mind on QE - or no QE - we may be beginning to see the catalyst to the downside that we have been expecting. The markets remain in extremely overbought territory and must correct themselves at some point. The question in our opinion is just when that occurs. The last week of February did in fact see a minor pull back that tested the 50 DMA on the DOW, however we remain skeptical that this was the correction we are looking for - but it is a step in the right direction. We will see how early next month plays out and hopefully we start to see some insider buying activity pick up again soon.

    We try not to predict market direction - we just play along with what the big boys are doing, right now they are not buying stock so as always time will tell when we start seeing more insider activity.

    Our online stock trading system mitigates risk by setting tight stops (6% in an overbought market to be exact). With the recent pullback on the 20th and 21st we were stopped out of 2 of the 4 positions we had open. Of the remaining 2 positions, one has had a sizable gain of which we have already taken our profits and the other has remained stagnant. On the whole we expect to exit February neutral without any significant gains or losses to our bottom line.

    As always, we would like to welcome our new members that joined us in February. We hope that you find this service useful and please feel free to contact us anytime with any questions or concerns that you may have.

    A summary of our picks from February 2013:

    (VTUS) was called after the market closed on 2/6 with a closing price of $2.56 per share. The stock opened up just 1 penny higher the next morning and we were able to open a position at $2.59. (NASDAQ:VTUS) stayed in a very tight range for 3 days until we finally got the pop we were looking for. Two days later on 2/13 we reached our target price and exited the position for a small but efficient 7% gain in only 5 trading days! As of this writing (VTUS) has realized a maximum GAIN of 22% topping out at $3.18 on 2/28.

    (NASDAQ:HA) was called after the market closed on 2/7 with a closing price of $5.70 per share. The stock gaped up 10 cents at the open, after waiting 30 minutes for a pullback we were able to enter the stock a tad below the open at $5.78 per share. Unfortunately (HA) has had a stubborn wall of resistance in the form of a 200 day EMA sitting at $6.00, the stock has touched this line several times, but so far as been unable to break through. Our software will hold a position for 30 days and sell automatically if a gain or loss is NOT realized. We are looking for $6.18 on (HA) but time is running out as it will sell automatically on Monday 3/11. As of this writing (HA) remains in neutral territory without any substantial gain or loss.

    (NASDAQ:LPHI) was called during market hours on 2/13 while it was trading near its lows for the day at $3.78. Our software immediately was able to pick up shares for $3.80. A surge of volume came in and lifted the share price to a high of $4.02 on the day, putting us only .04 cents away from our 7% target of $4.06 in only 30 minutes! Unfortunately this spike was as high as it got and it slow drifted lower over the next several days. We eventually were stopped out during the market downturn on 2/20 for a 5% loss on the trade. As of this writing (LPHI) has realized a maximum LOSS of 10% bottoming out at $3.41 on 2/20.

    Although (LPHI) will go down as a loss, it was an excellent pick that showcased why we prefer to use an automated online stock trading strategy. The insider purchase information was made public at exactly 2:43:26 EST (as can be seen here).

    The very SECOND this information hit the wires our software was able to: scan the stock, determine it passes as a valid trade per our requirements AND make a successful purchase at the asking price - all within 42 SECONDS! This allowed us to enter the trade BEFORE the rush of volume came pouring in driving the stock up approximately 6% in only 30 minutes.

    Below is a small screen capture of our trading platform showing exactly when the trade was placed. This is why we use automated stock trading solutions.

    (click to enlarge)

    (NPSH) was also called during market hours on 2/20. The news hit the wires at 9:58:11 EST (which can be viewed here) while the stock was trading near $2.00. Our software is designed to give a little more leeway in terms of a percentage gain/loss cushion for securities priced under $2.00. Unfortunately we were forced to open a position at $2.03, plus this was a peculiar time to have a pick come through as the market was in a free fall. (NSPH) made a brief move higher to $2.07 the next day but the drop in the overall markets finally took hold and sent (NASDAQ:NSPH) tumbling down as well forcing us to stop out at 5% when the stock hit $1.93. As of this writing (NSPH) has realized a maximum LOSS of 7% bottoming out at $1.88 on 2/21

    An interesting thing to note about (NSPH) is that had we been able to enter this stock under $2.00 our stop loss would have been greater than 5% and as of this writing we would still be holding a position. However, the important thing to keep in mind is that this is a trading system.

    We are proving that over time, this stock trading strategy produces many more winners than losers. By limiting our losses and taking our small gains as they come, we WILL make money using this online stock trading strategy.

    Any other picks that were called within 7 days of the end of the month will be covered in the next newsletter.

    This month that includes: N/A

    As you can see, February was an interesting month. Based solely on insider buying activity I think that we have a somewhat clearer picture that the markets could be in for a medium sized correction. Hopefully the red markets we saw at the end of the month WAS the correction. Like I stated in the introduction, time (and insider buying) will tell!

    Although we leave the month neutral in gains we are happy because we were able to limit our losses by using a trading system that does not allow our emotions to get in the way leaving us in a vulnerable trading position.

    As always feel free to contact us with any questions or suggestions. Our goal here at Synergy Trader Pro is to build relationships with like-minded traders who seek a systematic and automated way to trade the stock market.

    Disclosure: I am long HA.

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  • axnjaxn
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    Comments (3) | Send Message
     
    the $LPHI trade...that was prompted by an Insider buy? Are all your trades prompted in similar manner ? First time here !
    4 Mar 2013, 07:46 AM Reply Like
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