Wondering whether squeezes work? Check out Renren (RENN) (January 05, 2013)
RENN
I’m Dan Fitzpatrick at Stock and OptionMarketMentor.com on Saturday, January 5th. I want to look at Renren ( $RENN Renren Inc ). This is a Chinese Internet company and I’ll show you why I’m looking at it. See how far this thing has fallen, $8.00 all the way down to less than $4.00? So it’s taken quite a haircut, but the stocks coming out of a volatility squeeze, I’ll stretch this out and you can see the volume; volumes heavier than average, it’s not like a really, really super spiky like it was here, but it’s above average, meaning that this stock is under accumulation, a couple million shares traded. If we see zoom out to about this level you can see that this stock, it’s just kind of been coming in for a landing, you know, just gradually, I guess you could call this a base, but it’s really just kind of been more of a downtrend, which finally we’ve landed and now it looks to me like Renren ( $RENN Renren Inc ) is starting to push higher. I think this is a stock that you can buy right now; you can start scaling into right now. Now they don’t announce earnings until sometime in March, but they did announce a buyback in late December, so I think there’s going to be some upward pressure on this stock, or put another way, to those who use the hope strategy, it’s come down enough, and so now the stock looks like it’s probably going to move higher and turn that 50-day moving average up. So look, one thing before I let you go, other than the fact that my voice is really, really bad today, I’m teaching an option course on Saturday, a week from today, it’s called “High Octane Options,” and I hope you check it out, it’s a really, really good course, I know what’s going to be heavily attended, the good news is you don’t have to get there early to get a seat because it’s streaming, it’s online, I’m on camera wearing my entire suit, and anyway, I hope you’ll check that out. Free Chart