Just a quick update to my readers before Thursday’s open. Impac Mortgage (IMPM) had a pullback today after the move up on Tuesday. We opened Wednesday with a gap up and I sold some shares to rightsize my position a bit and lock in some realized gains. We didn’t have a lot of buyers at those high levels so we went back down to Tuesday’s highs fairly quickly. Throughout the day, we seemed to build support levels around $4.30 and $4.40 and I’d like to see us gap up again Thursday morning and create higher support levels from there. IMPM is now starting to move like a larger cap stock and not giving the fast 100% gains it once did starting the middle of last year. However, we had significant buying support around $4.30 and $4.40 and the L2 didn’t show strong selling pressure until $5.50 for most of the day. I interpret that as we have patient long-term buyers looking to build up their positions rather than buying up too quickly, exhausting their cash levels, and not being able to buy more if it dips. I always recommend buying in increments. The hourly MACD finally turned to a downtrend around 1pm (Eastern) on the chart but switching to the 15-minute mark shows we leveled off during the last hour and this could indicate we are about to uptrend early tomorrow. The last hour was strong, outside of the last 10 minutes so I feel good about what Thursday brings as of right now.
IMPM Chart (Click to Enlarge)
I’m expecting more buyers to establish positions and help us work our way up to the $5 mark before breaking it. I’ll look to rightsize my position further in case we struggle to continue momentum up. I don’t want to be highly invested in IMPM for the long-term since the economy still isn’t too favorable for them. However, after the dust settles, I tend to reevaluate my position and possibly add if it starts to trend back towards the new 50-day moving average.
In other news, Cord Blood America (CBAI) made a move up after a bullish interview with Matt Schissler, CEO, was released on Tuesday afternoon. We moved over a penny from when I said I started buying around $.0082 the other week. Pretty nice gains, huh? If you had been apart of the chatroom during the day, which is completely free, you’d realize I informed the present company that the Bollinger Bands and MACD indicated a swing was ready to take place and good news would fuel it to the upside. We received the unexpected good news in the form of an interview on Tuesday afternoon and saw that move up. Now we are creating support levels around $.0096 and $.0098 with the MACD starting to level off according to the 15-minute marker. If it continues to level off early tomorrow, we could see the hourly MACD continue to increase therefore prompting us to move another leg up.
CBAI Chart (Click to Enlarge)
If we receive acquisition news or good financials within the next 30 days, we could see significant upside potential from these levels. I will monitor the chart and look to add on weakness but might also lock in some profits on strength if we extend ourselves again on another jump. My style is to trade around a core position and lock in as many realized gains as possible with buying on dips and selling on strength to rightsize the position.
As always, do your own homework to make sure you are prepared for tomorrow. Good luck out there.
Mike
At the time of publication, Kudrna was Long IMPM and CBAI but positions can change at any time.
