It's usually slow here at Synergy Trader during earnings season; but my goodness this is ridiculously slow! I think this is just a testament to how over bought these markets truly are. We are at record levels WITHOUT the proper economic data to back up the price we currently see in the markets, thus big hedge funds and insiders are hesitant to put money on the table until the markets have a substantial sell off or we start seeing better economic data.
Needless to say this month's newsletter will be a short one. Not all was lost however as our software did make one alert towards the end of the month. We called ALXA after the market closed on 7/26 and traded on that alert Monday morning. We are currently in ALXA at $4.60. This stock has had a few pops in price but thus far has been unable to sustain anything and we are currently about even on the position ($4.66 as of this writing). ALXA reports earnings on Aug 9th and we are hoping that will be the catalyst in this trade, this security has a LARGE short position (22% of the float!) so any good news here could cause a massive short squeeze and increase in price.
Another talking point this month was SNTA, a stock that we alerted early last month when it was trading at 4.57. SNTA traded down 6% and we were stopped out after a few days. However, soon after our software sold the position more insider buying came through the SEC and the stock has since catapulted over 50% to over $7.00! Since our software uses an automated systematic approach to trading we sometimes miss these big moves and get stopped out early before a big move, the markets are unpredictable and we take our profits and cut our losses at predetermined intervals.
To anyone that bought SNTA on our alert and continues to hold, congratulations! I would advise taking some profits but I also think this has much more room to run!Latest News:
- 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 among our members.
- 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 July. 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.
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: ALXA
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 and participate in the stock market discussions.
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 ALXA.