Juno how to trade this stock? Here’s one way.. (December 26, 2014)
Juno ( NASDAQ:JUNO ), this is a stock that’s like new IPO you can see it; this is the trading history, and it’s has a heck of a move, 25 percent from when it opened up. So how are you going to trade this stock? There’s just not enough data to trade it responsibly. You can just buy it and hang on; I mean crying out loud it went up 22 percent in a day, on Friday, that’s manna from heaven, which is odd on Christmas.
You look at this, if you go down to say the 15-minute chart suddenly the stock is kind of tradable, it’s infinitely tradable. There’s the squeeze, over a day, forget about what the daily chart looks like, I would tell you right now, for the next several days or even weeks you don’t even need to look at the daily chart, there’s not enough data there, why do you want to look at it? What the heck are you going to get out of that? You’re going to get nothing out of that.
If you zoom in to say a 15-minute chart, you can see a breakout. Similarly here on the 26th, this was the opening move, the high of this period, 43.85. The stock didn’t trade there for quite a while until ultimately it did, then you get a nice big move, how many percent? Nice, because you set an alert. How are you going to get this type of information just trading a daily chart? I guess you could say the high here was 49.71 so I’ll buy at 49.72. Okay, great! Wouldn’t you rather be looking a chart like this where you can watch this run up?
The best technical setup for this chart right now, for this stock, would be for this stock to find some kind of settling out point, some kind of way for the stock to be trading sideways for a while, give you another volatility squeeze like this, and then you get the next breakout. Now alternately, this is like a really easy method: here’s the 20-period moving average, it’s the average over the last twenty 5-minute bars, you could do something like this, make this like a 10-period, how about a 5?
Even a 5-period moving average gives you a reference for where this stock is trading; it’s trading at a really, really fast clip, moving up really nicely. So if you use in this case a 5-period moving average then when the stock, and ultimately it will, when the stock starts trading below this 5-period moving average that’s when you want to start exiting your long positions. Excuse me, I’ve been saying 5-minutes, I meant 15-minute.
When the stock starts trading below the 5-period on a 15-minute chart that’s when you know the stock’s settling in. It’s not to say it’s going to be a big pullback but you’re trading this thing, buy low sell high; you think the stock’s moving higher. So when it’s starts trading below a moving average that’s been working then you know that it’s time to get out of that trade and start looking for another trade, perhaps on this same stock, that’s going to work.
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