There were five stocks on the watchlist for Thursday, and three of them ended up being solid plays. The ones that were not were HGG and GLBL. GLBL could have been a solid play if you played the continuation play, but it would have been higher risk than I would be willing to take, unless there was a nice setup on the intraday chart. HGG started with close to a 2% gap up at the opening bell, which would all but eliminate my confidence in the stock continuing positive momentum. Not to say that this is not a good setup in other context, but in terms of the bouncer play, if a stock is already up more than what you expect to get out of a play, then it is time to look for other options. The successful plays for today were EROC, BAS, and CHBT.
EROC was successful if the reverse bounce play was employed. The stock had a low of $9.95 after breaking below the signal level of $10.15
BAS had a low of $23.37 after breaking below the signal level of $23.69. The stock closed up for the day which shows why it is important to take profits when you have them. No strategy guarantees a stock to fall and continue to fall.
CHBT had a high of $8.10 after breaking above the signal level of $7.89.
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