MCP

    Posted by matt on 21st of Jul 2011 at 04:34 pm

    MCP - rare earth doing nicely as well, broke the channel the other day and took out the downtrend line today and 50 day MA.  I like this as a longer term hold with a wide stop

    I also like the setups

    Posted by steve on 21st of Jul 2011 at 05:04 pm

    I also like the setups in REE and AVL as ones to watch.

    Steve, how would you approach

    Posted by oreo on 21st of Jul 2011 at 05:07 pm

    Steve, how would you approach AVL? I already own it but don't know if stops are appropriate with it's thin trading. I like the action today and wondered if you were approaching this as a longer term trade or have a target in mind.

    Hello oreo - these stocks

    Posted by steve on 21st of Jul 2011 at 05:11 pm

    Hello oreo - these stocks popped after call buyers stepped in MCP late today. Honestly, AVL looks like a reasonable swing setup here but one has to realize that this small sector is extremely volatile and subject more than others to gov't regulation. Thus, one has to decide what fits with there own style and risk tolerance. If swinging, I would make sure you do your due diligence on the company you elect to hold.

    Thanks for your thoughts Steve.

    Posted by oreo on 21st of Jul 2011 at 05:16 pm

    Thanks for your thoughts Steve. I had placed a stop at about 5.7 to give it a good amount of room but now just wondered if it would be appropriate to move that stop up or would the volatility take it out? I have done some fundamental research on the stock and they aren't yet profitable but have a lot of potential. I like it for a swing trade but just want to have some type of stop in mind and also wonder if it would be best to make it a mental stop so the volatility doesn't take it out.

    oreo - personally, I would

    Posted by steve on 21st of Jul 2011 at 05:31 pm

    oreo - personally, I would move it up to near 6 (mental or not) as it should not retrace past that level if it intends to go up now. I can always rebuy later if it fails here.

    Thanks Steve, that makes sense!

    Posted by oreo on 21st of Jul 2011 at 07:07 pm

    Thanks Steve, that makes sense!

    If you don't mind Steve,

    Posted by algyros on 21st of Jul 2011 at 05:39 pm

    If you don't mind Steve, could you also recommend a stop for MCP?  

    algyros - the stop would

    Posted by steve on 21st of Jul 2011 at 05:45 pm

    algyros - the stop would largely depend upon one's trading strategy and risk tolerance, but after today's action, I sure would not want to see it go below today's lows at 53.60.  Personally, I would watch these stocks closely if trading since they tend to be wild swingers since most investors have a hard time analyzing these companies. Should it get follow thru tomorrow, look to raise stops again and or consider taking some profits depending upon your strategy. 

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