We were back on track in March with the number of trade ideas that have come through our software. However, this month as had more losers than winners. With the market being so overbought any pull back can be disastrous to our current positions when we are using tight 5-6% stop losses.
Our trading system mitigates risk by setting tight stops. With the recent volatility in the markets near the end of this month several of our open positions have been getting stopped out making March our first losing month since April of LAST YEAR! Folks that is one entire year without a monthly loss on our picks and that is something to be proud of! It's has been an incredible winning streak and we are expected to give some back every once and awhile so we are not worried about some red this month.
In this market or any market for that matter you will NOT win 100% of the time, if anyone tells you that they do - I would advise you to run because they are full of it! Our top priority here is to be as transparent as possible with our users which is why we have absolutely no problem reporting our losses or the fact that we had a bad month.
- Look out for a new message board / forum coming soon to the website. We are striving to build relationships with our members and a forum where we can share trade ideas, discuss our strategy and talk about any current or past trade ideas will be a perfect addition to this service.
- Be sure to look out for and follow our upcoming "Double Your $$" challenge where I will fund a live account with $5,000 at MBTrading.com and document the progress made using this trading software. I estimate that using this system and with a little luck we should be able to double this account in roughly 12-15 months. We plan to kick this off sometime in April or the beginning of May!
- We would like to welcome our new members that joined us in March. 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 March 2013:
MERU was called after the market closed on 3/5 with a closing price of $4.40 per share. MERU was one of the bright spots for us this month as it jumped quickly out of gate and began to make a very nice rise right from the start. We were able to open a position the next morning at $4.64 (which is a .24 cent gap up from the previous close) but it did not matter as MERU continued to rise through the day.
These are my favorite type of swings as we reached our 10% price target the VERY SAME DAY near the close and were able to exit the trade at $5.10 resulting in a nice profit. MERU has continued to climb even higher throughout the month realizing a maximum GAIN of 50% topping out at $6.95 on 3/28.
CDXSwas called after the market closed on 3/7 with a closing price of $2.34 per share. Stocks under $2 can be quite volatile as this one also immediately started moving higher on the open after waiting 30 minutes for a pullback we were able to enter the stock only .06 cents higher than the previous close at $2.40 per share. The very next day CDXS scared us a little bit as it had a correction of around 7%, luckily we had opened are position early enough the day before to withstand this - missing our stop loss by only a few cents. The next day CDXS took off and we realized our 10% profit a few days later on 3/14. As of this writing it appears we timed CDXS perfectly as once it hit our target it began to break down. We are happy to report that CDXS realized a maximum GAIN of 11% topping out at $2.66 on 3/14.
CVOwas called an hour after the market opened on 3/12, we immediately opened a position at $2.33. We really liked this one when the play was called but unfortunately it was sitting around some heavy resistance points in the 50 and 200 EMA's. The stock made a high of $2.40 that same day but that was all as it bounced off the EMA's and continued lower throughout the month. As of this writing CVO has realized a maximum LOSS of 21% percent on 3/27.
ACWwas called during market hours on 3/13 and we opened a position at $4.90 - only seconds from when the insider purchase information was made public. ACW was another picture perfect swing trade as it held a steady rise north allowing us to take our profits only 2 days later on 3/15. As of this writing ACW continued its upward trend realizing a maximum GAIN of 17% topping out at $5.74 on 3/18.
SYNCwas called after the market closed on Friday 3/15 with a closing price of $3.00. When the market opened Monday morning we opened a position only 5 cents above the close at $3.05. This is another trade idea that looked great but unfortunately it remained stagnant for most of the month, making only a small run up to 7% but eventually breaking down taking out our stop loss on 3/25. As of this writing SYNC has realized a maximum LOSS of 7% on 3/25
FOLDwas called during market hours on 3/18 and we jumped in a position right away at $3.30 per share. This was another play that had some resistance lines on the chart to deal with. At the time of the call the 50 EMA was sitting at $3.42 which proved to be a great block on the price as the high so far since 3/18 has only been slightly over that at $3.59. Unfortunately for us $3.59 is a 9%gain from our entry and our stop gain is set at 10%! We missed this one by a few cents and it has since trended down, eventually stopping us out for a small loss. As of this writing FOLD has realized a maximum LOSS of 9% on 3/25
SKULwas called after the market closed on 3/18 with a closing price of $5.33. The next morning this stock gaped WAY up, opening at whopping 8% higher at $5.76. Our software waits 30 minutes after opening to make a purchase for this very reason, often the price will come down from the open and we are able to get in a better price. That was the case here as we were able to open a position $5.63 still 5% higher than the close, but much more manageable. However, SKUL was yet another disappointment as $5.84 is the highest price we would see, occurring on the same day we opened the position. Since that time SKUL has drifted lower, finally stopping us out on 3/26. As of this writing SKUL has realized a maximum LOSS of 7% on 3/26.
KTOSwas called 30 minutes before the market opened on 3/19. Our software still waited 30 minutes before making a purchase allowing us to get into this trade at $4.98, which was only .12 cents higher than where it closed. KTOS is still open and this is another one that we like a lot. It is currently hovering right above its 200 EMA, which is FAR better than being below it like on some other plays we had this month. As always, we are looking for a 10% gain on KTOS, hopefully we will realize that soon.
TWERwas called after the market closed on 3/25 with a closing share price of $2.36. We were able to open a position the next morning at exactly the same price. TWER had a small run up to $2.42 before heading south. We were eventually stopped out the next day taking a small 6% loss on the trade. As of this writing TWER has realized a maximum LOSS of 10% on 3/27.
Any other picks that were called within 7 days of the end of the month and are still in play will be covered in the next newsletter. This month that includes: N/A
Even though March was our first losing month in quite some time I am not discouraged. The reason being that insider buying activity as picked up considerably since January and February. This is almost always a good sign, Officers and Directors are seeing VALUE in the market and the companies that they run right now.
As stated previously, we remain extra cautious in overbought markets so on market consolidation days where we see the DJIA down anywhere from 100-200 points it can sometimes take our stops out because most ALL stocks are down only to bounce right back the next day.
April is the beginning of earnings season so I expect to have less plays come through our software next month, but then we have May which was our best month on record last year so looking forward to see what we can do then!
As always feel free to contact us with any questions/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 KTOS.