The old adage "Sell in May and go away" does not appear to be ringing true in 2013! Our software has been rocking this month, and as of this writing Synergy Trader Pro has alerted 8 plays with one of those going for an outstanding 42% gain over a 30 day period!
Not all is roses and sunshine though as we are STILL pushing new highs on what seems like every other day and in my opinion, this is just not sustainable - a huge market correction has got to be on the horizon, the question remains not if but when. However, as John Maynard Keynes has been quoted saying; "The markets can stay irrational for far longer than we can stay solvent". So with that we will continue to view the market as bullish until it isn't!
With the increase in insider buying it leads me to believe that we will continue on this path for the foreseeable future, sure there will be some pull backs along the way but on the whole it appears big money thinks that this bull run will continue and I won't argue with an executive putting $300,000 of his own money on the line - in fact we will be buying right along with them.
Speaking of small pull backs in the market, there have been several small corrections this month and our picks have held up incredibly well. With only a 6% stop loss on these trades we do not have much room for error so withstanding a -200+ day on the DJIA is really saying something about the quality of these picks. Historically the summer months have been the most profitable for our trading system and so far 2013 appears to be no different. We are off on the right track this May and think this trend of solid 6+ picks will continue through the next several months.Latest News:
- Lookout for a new message board / forum coming soon on the website. We are striving to build relationships with our users and we feel a forum where we can discuss our strategy as well as current or past trade ideas will be a perfect addition to this service.
- Our "Double your $$" challenge account is going strong. As of this writing we have closed two 10% winners and just one 6% loser. We currently have 4 trades still in action which could go either way, we estimate the over the 30 day cycle the account should have increased $300-$400 or a full 6-8%! Feel free to play along as right now ALL of our picks our being sent out via email in real time. Just sign up for a FREE account to get started!
- We would like to welcome our new members that joined us in May. 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.
(NASDAQ:MTSN) was called after the market closed on 5/1 with a closing price of $1.44 per share. (MTSN) gaped up over 10% on the open and continued to run without looking back. Synergy Trader Pro does not chase stocks on the open, thus we were unable to open a position. (MTSN) eventually topped out at $2.25 19 days later for an incredible 42% GAIN from the point where we would have purchased if the software had purchased this security.
We still track the results on our website even though the software did not trade on this particular pick.
(MTSN) is a great example of how our software attempts to mitigate risk. The next day when the market opened (MTSN) soared 13% higher. Our software waits 30 minutes after the open to purchase a stock in an attempt to catch pullbacks from securities that "gap up" such as (MTSN) did. However our software DOES NOT CHASE, meaning that when it is time to buy, if the stock is still 10% over the previous days close it will place an order at 5% above the previous close. If the stock never comes back to that point within 3 days we are forced to abandon the play and move on to the next one.
(NASDAQ:DEPO) was alerted just before the market opened on 5/13, previously closing at of $5.13 per share the day before. (DEPO) also gaped up in the morning, after waiting 30 minutes we were able to open a position at $5.32. (DEPO) hovered just under the 20 day moving average before finally breaking through the 20, 50 AND 200 day moving averages before topping out at $5.92 on 5/24 for a maximum GAIN of 11%
(NYSE:CVO) was alerted during market hours on 5/14. We love the picks that come through during market hours because it shows the true power of automated trading, we also do not have to deal with those nasty gaps at the open which can sometimes cut 5-10% into our trade margins. (CVO) was trading around $2.20 when the insider purchase hit the wires and Synergy Trader Pro was able to immediately open a position at $2.25. Over the next hour (CVO) had a huge buying surge hitting $2.34 in short order. However, over the coming weeks it continued to drift lower. We really liked this one, everything seemed setup to be a great trade. It just goes to show you can't win them all. After getting rejected at 20 and 50 day moving averages several times we were stopped out for a 6% loss on the trade.
(NYSE:IMN) was also alerted during market hours on 5/14 when it was trading around $3.74 per share. Once again when the insider purchase news was made public, (IMN) immediately shot higher, all the way up to $3.96 within the next 30 minutes. Synergy Trader Pro was able to open a position at $3.80. (IMN) has had a steady march higher over the month - gaining just a little bit at a time. We finally closed our position for a 10% gain on 5/28. As of this writing (IMN) has realized a maximum GAIN of 11% topping out at $4.22 on 5/28
(NASDAQ:FTEK) was alerted before the market opened on 5/17 with a previous closing price of $3.62 per share. (FTEK) gaped up the next morning, after waiting 30 minutes we are able to open a position at $3.84 which cut 6% into this trade right from the start. (FTEK) moved all the way up to $4.01 that same day before slamming into the 50 day moving average. So far (FTEK) has had a hard time getting passed the $4.00 mark. It currently seems to be consolidating, we are we are confident that it will move higher in the near future. This trade is still live and we are set to take our gains at $4.22 or cut our losses at $3.61.
(NASDAQ:HA) was alerted after the market closed on 5/20 with a closing price of $5.50 per share. After waiting 30 minutes after the market opened on 5/21 we were able to open a position in (HA) at $5.57 which was a fantastic price! The very next day (HA) exploded moving up 9%, touching the 200 day moving average. It has since pulled back and consolidated some but I am confident that within a few days (HA) will move past the 200 day moving average giving us the opportunity to clear out of this trade at $6.12. If not, we will cut our losses at 6% or $5.24.
Although (HA) is not in an industry where we typically see a lot of insider buying, we have played this one before - back in February of this year and were successful with it. The stock failed the 200 day moving average in March and is primed for another run up again.
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: (XNPT) and (CYCC)
Although we have several plays still in action I feel very confident that if we survive the major market corrections our picks will eventually trend higher allowing us to take our gains off the table. Be sure to check out the "Double your $$" challenge blog for the latest updates on our quest to double our account using the Synergy Trader Pro software over the course of 12-15 months. We are currently in the black on the account and confident that trend will continue.
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.