4 Speculative Trades to Start the Week

These are what I call the "Cats and Dogs Trades", meaning they are speculative because of price, volume or both. These trades in the past tend to yield double digit returns, but you are best off usually taking the profits or at least some of the profits once they hit the double digit area. After that, a tighter trailing stop for the remainder. They can be entered here for maximum profits, but your probabilities are a bit less or on a breakout where you lose some of the profit potential, but the trade is higher probability. Risk management should reflect the speculative nature of the trades, I never treat them like a normal full position, I usually reduce my risk by about half. 

ANX

 This is a wedging bull flag, volume looks right for the pattern.

 This is one of the few trades that has stayed in the trend channel for well over a month, so I provided a trend channel stop. If you buy a break out of the flag, then you'll probably want to lift the stop to just below the breakout area, although in this market I favor as wide a stop as possible given risk:reward ratios.

BPAX

 Another Bull Flag and volume looks right for the price pattern.


 These C&D trades often have gaps in intraday price which makes using 3C difficult with them, but there is a 15 min positive divergence which is rare to see not only in C&D trades, but within any consolidation pattern.

 As you can see, BPAX has puled back to the 10-day m.a., but the 22 day has held the trend longer. So once again, a wider stop may yield better results, it's all calculated in share/position size.

 The Trend Channel has also held this trade for nearly 2 months, I would personally consider the TC stop, however, I wouldn't want it at $2.20, I'd prefer a bit below or if the channel moves up some more, then a bit above, just not on the even number.

DYAX

 This is a bull pennant and very close to the apex which means it is close to a directional move. Volume is also correct for this price pattern.

 The Trend Channel has also held this trade for nearly 2 months and would be my choice for a stop.

 We have a nice crossover and a pullback to the 10 s.m.a.

VICL

 This is a trade we have been in and out of, I was suspicious of it nearing the end of its rally and closing in on a deeper pullback, RSI is also warning, but there could very well be more upside, I would watch RSI 14 for improvement if you enter this trade, otherwise, I'd keep a tight stop on it.

 Here's a 1 min positive divergence from late Friday.

 Here you can see the Trend Channel held the swing move up. I'd probably try to use the TC again, but maybe incorporate a tighter trailing stop if the trade hits double digits to pull out some profit.

Notice that if you used the 10 bar s.m.a. on an hourly chart, you'd be taken out of the trade a bit earlier, the 22 bar s.m.a. provided a little extra gain, but not much.