C&D Trades (Long)

Well I've run about 6 different scans, went through 300 charts, came up with a 1st round of 64 candidates, narrowed that down to 32 and that down to 14, out of those 14, I found a mere 5 trades that look good, I will say that I'm pretty shocked, I expected to have more like 30 or so, but going through the 32 stocks in a narrowed down watchlist, I found a lot of these Cats and Dogs trades are already burned out, meaning they drove them up and got the heck out of Dodge taking their profits with them, not at all what I suspected I would find.

In any case, here are the 5 C&D trades I think have a good chance. Remember, these are trades that can move very fast and put in some spectacular gains, very few are lasting trades so I generally take at least partial profits on any double digit move, especially if it comes in a single day. The rest of the trade (if it still looks good-decent volume, closes near the top of the range, etc) should be put on a tight intraday trailing stop. The ideal situation is to get enough profit to take your original investment off the table and let   the profits run. Don't underestimate their ability to move, they can easily make 30-50% 1 day moves and several hundred percent in a run, but don't fall in love, know when to take your winnings.

DRRX

 This one saw a capitulation event, it doesn't mean this is the bottom, but it can run a bit from here. There's a nice RSI divergence and some recent activity flirting with a breakout from the range on slightly larger volume, they usually start with slight changes in volume before the huge volume days present themselves.

 The volatility stop here is $.74, although you may want to wait for a breakout and place a stop near your entry, you need to definitely set alerts for price starting to move and move quickly.

I looked at all of these with 3C and they all show some positive signs, anything that didn't, didn't make the list.

DHT

 We already had 1 trade in this shipper, they went nuts a couple of days ago and pulled back, I think they'll see another run . There's an RSI positive divergence in the base area and volume has been courting longs lately.

 This one also has a very clean X-over unlike many others, this is one of my favorites, it may still see a pullback to the 10-day m.a., I would seriously consider buying on a pullback to that area, even on an intraday basis, otherwise a move above the high of 2 days ago would make for a good entry, again, I would consider my entry level or just below as a stop.

 Here's DHT on the Swing layout, the stop here is at today's low, which also works.

GERN

 Another capitulation event and positive RSI in the base area, it has seen some initial movement on some volume and pulled back on lighter volume, I like this one in this area, of course the first hint of a move through the trend line and I'd be a buyer with a stop just below the trendline by several cents.

 Here's the Trend Chanel stop, depending on your position sizing, this wider stop could also be used if you were to buy in the area rather then wait on a breakout move to start, in which case you NEED real time price alerts.

GSIT

 This one has been flat for a long time and is just showing movement, it pulled back a little and is starting to move again. I would consider a stop just below Tuesday's low.

 The Swing Layout has the stop in the same area I mentioned above, so that confirms what my thoughts were for a stop, a slight pullback intraday would be helpful in buying this one or phasing in with an initial entry here with a little room in case of a pullback or on a breakout move.

SCHS

 This has a nice little base look to it and volume is certainly courting traders running volume surge scans. I like this one in the area as well.

For me the Swing layout stop is a little deep unless you sacrifice some shares for the wider stop. I want to see this move, so I would consider an end of day stop just below today's lows, not at them as you never want your stop in obvious places like that or at whole numbers.

If you have questions on any of these, shoot me an email.