What's Hot & What's Not (12/15/06)
Hey guys,
Nick here to tell ya what stocks are hot and which ones need medical assistance...
What's Hot: AXR, GROW, IAAC, TSRA, OPTM, HXM, RENT,
What's Not: WTS, PSYS
By the way, today is options expiration day for contracts expiring in December. I sold all my December calls today for modest profits in: GTXI, MGM, IFF
By the way, I picked up some GUID (new IPO) at 17.10 I am also looking to add some other ones like GLS, AIMC, AFFY, DBTK, ISLN.
I am avoiding IPGP, and DCT for now as they do not show the technical patterns that I look for in new IPO's. IPO's like RVBD, OMTR, HMIN, DIVX, etc and other successful IPO's show distinct patterns when they IPO, which helps me predict their success.
posted by Nick M. @ 11:50 AM
3 Comments:
Hi Nick
Just got back from RI. Question I have for you is that what patterns you look for in New IPO's? I have never read about or come across anything that talks about patterns in IPOs? May be I need to learn something here :)
As far as comments on my blog go, I am not sure why you weren't able to leave a comment? Try again and if you aren't able to then let me know and I will see what can be done.
First of all, I want to stress that this pattern doesn't always have a 100% success rate, but it is fairly accurate. The pattern is really simple. It is just something that I noticed when I use charts from BigCharts.com
Here Goes...
In Bigcharts, make sure you put in the "money flow" indicator for one of the lower indicators. There will be a single small dot present-either above the 0 (neutral) line or below it. If it is above the 0 line, the IPO will have a higher success rate. If it is below, it may have a lower initial success rate. Now, realize that this is not a 100% accurate. Sometimes the money-flow dot can quickly change positions the next day, so you should check it out for the first couple of days since it can change.
As the IPO trades for a few days, this dot (on the IPO's opening day) will become a line.Then it will be easier to follow. One of the last few IPO failures such as NMX and HLYS have their Money flow line below the neutral line and consequently, they had crappy debuts and recent performance.
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