HGSI Update

HGSI was an earnings play, we had several members make $500-$1000 in after hours. I would point out, that because of AH trade conditions and retail's willing ness to chase, that is usually where you will see maximum gains.

That being said, when HGSI was mentioned, I said this positive divergence could also be related to something else like a drug in their pipeline, FDA, etc. We saw something similar with the RIMM earnings which beat, but the next morning it dropped 9%, we held because the 3C charts still looked good, a few weeks later they had a MAJOR shake-up and replaced their dual-CEOs and RIMM rallied, we made money on that position despite the 9% drop.

So in short, I still like the looks of HGSI as a long trade, here are the updated and long term charts since earnings.

 Short term 2 min charts have shown continued positive divergences, it seems HGSI is being accumulated for something coming out.

 HGSI 5 min since earnings is leading positive even stronger

 The intermediate 15 min chart remains constructive and quite positive

 The 30 min chart shows the cycle from the turn down to a strong positive divergence

The 60 min chart shows more of the cycle with the mark up confirmation stage, the top and now strong 60 min accumulation.

 Bottom line, I still like HGSI as a long.