Hello readers,
I apologize for missing the last few days. I have been really busy with some other projects. So, to make it up to you, I have three picks for today. I will be doing a Buy Pick of the Day, a Long Play, and an Overnight Trade of the Day. I think these three picks will get us right back into the swing of things. I am available all day for questions, and I hope to get some good conversations going today. Look out for the other two picks throughout the day.
Buy Pick of the Day: American Commerical Lines Inc. (ACLI)
Analysis: There is not a whole lot of analysis needed here. ACLI is a straight up trade. The best of its kind. Here is what we can see this morning. We have a market that is ready to open higher. We have stocks that have been beaten down into a bloody pulp for the most part of the past few weeks. Then, we have ACLI, who just reported an EPS that is nearly 2000% higher than expected. The company’s stock is up over 22% in pre-market trading. What do you think will happen on open. The thing is going to skyrocket for at least the first thirty minutes.
It will not be a small sky rocket either. This one is going to jump very quickly. Why? This is because everyone is going to want to get involved in it very quickly. That kind of earnings beat is amazing, and it can lift a stock 40% in a day. This one is up only 22%. In the 19s, the stock is jump hitting its upper bollinger band. This means that it has a lot more room to pop through. 
Yet, the even greater reason is low volume. This stock is extremely low volume, meaning it gets little interest for most of the days of the year. When thousands rush into a stock with very little outstanding shares…BOOM! This one blows up. Everyone will be scrambling to get the few shares available. That is why you buy very early and get out as quickly as possible.
This type of trade is applicable to a lot of stocks…not just ACLI. The criteria I have just listed does not happen everyday obviously, but I would venture to guess once a month something like this happens, so be on the look out for it.
The only other advice…
