We have been waiting for this for what seems like forever. Back in March & April the markets were becoming extremely overbought and continued that trend through May. Our picks were becoming few and far between as market caps became inflated, the picks that did make it through our Synergy Stock Screener never had much upside with the market already posting record gains on the year. It is a tough market to make money in and we have been running about even on our win/loss ratio at the halfway point of 2013. We have been hoping that the market would present some buying opportunities and it appears that we may be seeing that now or at least very soon.
We have felt that if we could get a proper pull back of 5-10% it would create some new opportunities for our trading system. The Dow Jones corrected about 5% which is a healthy normal correction. Personally, I would like to see the Dow Jones around 14,000 and in time, I think we will. This would represent a 10% pullback right in line with the rising 50 day moving average on the chart. I think if this happens we will see some major insider buying activity lighting up our automated trading software.
Due to this market correction we have had an unusually slow month of June with our software only recording 2 picks both of which came early in the month and have not fared the greatest.
The simple fact of the matter is; big money is not purchasing stock at these levels and likewise neither will our trading software.
· Our new message board /forum is now live! We encourage you to come on over and contribute to the community. Any time a new alert comes through our software I will post a message to the forum so that it can be discussed amongst our members. This forum will also be open to anything stock market related, or as a place to just chat about anything. If you have any questions about the service, feel free to ask about them there! I look forward to meeting some of our members and growing this community through our forums.
· Our "Double your $$" challenge account remains about even money. However, it will not take long to get this going in the right direction when some quality picks starting coming in after the market settles down.
· We would like to welcome our new members that joined us in June. We hope that you find this service useful and please feel free to contact us or post on the forums anytime with any questions or concerns that you may have.
A summary of our picks from June 2013:
XNPT was called after the market closed on 5/23 with a closing price of $5.39 per share. Our software waited 30 minutes after the market opened on the 24th to open a position in XNPT at $5.54. Over the next day and a half XNPT had a very nice increase in price on above average volume all the way up to a high of $5.94 per share. Unfortunately this was only a 7% gain from our purchase price, XNPT reversed course the very next day and dropped all the way down with the rest of the market to a low of $4.47 stopping us out of this trade for a loss of 6%.
CYCC was called after the market closed on Friday May 24th with a closing price of $3.25. The next Monday CYCC gaped up and started to run, our software was able to open a position at $3.50. That same day CYCC reached its high of the month at $3.64 before reversing course and eventually falling all the way down to $2.78. We were again stopped out of this traded for a 6% loss.
CALD was called after the market closed on June 4th with a closing price of $6.26 per share. CALD moved up slightly the next morning as most of our plays do and we were able to open a position at $6.35. CALD was alerted when the stock was nearing 52 week highs, which sometimes works out very well as it may be in the middle of a short squeeze, but can be difficult to trade because it has already seen a very impressive increase in price. CALD has however held up considerably well during the days when the Dow fell over 5%. CALD has moved about 5% both directions from out purchase and as of this writing is currently trading a $6.50 for a small gain. This trade is set to expire on July 5th, automatically selling at market if it has not realized it stop-gain or stop-loss target by then.
SNTA was alerted during market hours on June 7th while trading around $4.50 per share. Our software was able to immediately open a position at $4.57. We have played SNTA before and have had mixed results, this stock has a great share structure, a large short position and what seems like a lot of insider buying. However it is also very volatile and can move in either direction very quickly. In this case the stock could not get anything going and eventually fell lower with the rest of the market. We were stopped out of SNTA for a small 6% loss.
It should be noted that we were a bit to early on this one as more insider buying has been reported in SNTA and the stock price has seen a very nice recovery off of its lows, gaining more than 25% in a strong bounce. However our software waits for at least 2 months after the initial insider purchase to "replay" a security.
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
Although it was another slow month for our automated online stock trading system I am not concerned in the least. Swing trading is a marathon, not a race and there will always be some bumps in the road.
Because we follow big money transactions our system has a very unique way to mitigate risk. It's very simple; if smart money is not buying, our trading system is not buying. With markets overbought there simply is no value in many stocks right now.
The good news is that in the future (it could be late fall), I expect we will see the buying pick up again and we will be well positioned to take advantage of some great opportunities in the market. In the mean time, I encourage you to head on over to the new forums, start some great conversations and most of all - enjoy your summer!
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 CALD.