Here are two bullish trades on stocks that look completely different. Check out Roku (ROKU) and Angie’s (ANGI). (February 21, 2018)


In this Chart of the Day, I am going to call an audible here, which I can do, I was going to talk about Angie’s List ( NASDAQ: ANGI ) and of course I will now but then I have got something else on Roku ( NASDAQ: ROKU ).

Angie’s List ( NASDAQ: ANGI ), I mentioned this yesterday, they are in a pretty meaningful, shall we say, short squeeze. You can see the volume here on this breakout from above the upper Bollinger Band. A high volume breakout here, earnings, Boom! They’re good. The stock moves higher here and now we are off to the races. If you are short this stock you are with a bunch of guys, who if you all decide that you want to buy based on the average volume it is going to take you almost two months to get that done.

The bottom line is if you close your eyes and you listen very hard you will hear bears screaming. I am looking at this stock and I think that it has even got higher to go. I think it is one of these where it is a little extended, I even mentioned yesterday that it was a little bit extended here. But when you have got this much short interest and a chart pattern that looks like this you have kind of got to buy extended stock.

I think you could even still buy it. You are definitely late, no question about it. But I would say if the stock goes above today’s intraday high of 15.17; I set an alert at 15.20, so if goes above 15.20 then the stock is on a bonafide move higher. You go ahead and buy this stock and then just have a reasonable stop loss set. That is how I would trade Angie ( NASDAQ: ANGI ).

Now Roku ( NASDAQ: ROKU ) has done really, really well lately. Not a huge percent gainer, from this level here at one point today it is up 20 percent, but this is one of those fast trading stocks. It is not a good thing to hold it over earnings. They reported after the bell. Nobody seemed to like them too much and this is what the stock is doing now; it is trading right around $39.00 to $40.00.

What I am suggesting here is, look and see how this stock trades tomorrow. Down from $51.00 to $40.00, that is over a 20 percent drop and it is right at prior support. This could be a really good trade. This could be a real good trade to the long side. I don’t know whether that is true or not, we will have to and see. But I am going to be looking to buy this on the big gap down. I just need to see it stay above $40.00 or so. And a couple minutes into the trading I need to see it above where it opened.

The stock is going to open up really ugly. If the stock is trading ABOVE the open, literally one or two minutes in, wait at least that long, if it is trading above where it opened at then you know the buyers are in control of the stock. We got a big pukefest first thing in the morning and now traders are coming to take this stock higher. If it doesn’t move above where it opened then don’t buy the falling knife. That is what losers do. You don’t want to be a loser so don’t buy the falling knife, wait for it. I will be in the forum doing this tomorrow; I am looking to make some money.

Free Chart

Leave a Comment