Here’s the recap on Lannett (LCI) (May 10, 2018)

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LCI MSNT LCI 

I covered Lannett ( NYSE: LCI ), a drug company, yesterday, noting that this was ripe for an oversold bounce. A really nice, what I thought would be a three-day move. Where you get this big, massive sell-off here, earnings, right? And then yesterday on Wednesday the stock actually gapped up a bit but then traded lower but then kind of recovered.

So my analysis was, I gave you three of them, you can review the video for those I won’t go into all the details again. One of them was if the stock starts trading above yesterday’s open, which is here at 13.95, if the stock starts trading above that then you can start buying the stock. Then if it trades above the high, we will call it 14.10, it is actually 14.08, then you go ahead and buy more. So you are getting an early start on it; in any event your stop, no matter where you are buying it, would absolutely be no lower than $13.00. Frankly, you would want it just very, very close to the low here.

So what do we get today? Boom! This is kind of a textbook case here. We will look at this on the 15-minute chart; here is the present day. You can see how yesterday the stock trailed down here and then started rebounding. It caught some volume and then trickled sideways the rest of the day. And then today, first thing in the morning the stock starts jumping up. The real buy signal was right here at 14.08, around then. And then before too long you have got at least a 5 percent profit, maybe more, it just depends how quick you were. Then you just kind of wait for the stock to settle out and it didn’t take too much time. Then you take your trade and you move on.

You don’t become a fanboy; I am not a fan of Lannett ( NYSE: LCI ). I have absolutely no idea what the fundamentals of the company are, what they do, couldn’t care less. Drug, schmug, I don’t know if they make opioids or oatmeal but I know this chart.

Now that you have taken this trade you take it off the table and you look for some other stuff because these types of trades come every day. Off the top of my head Monster ( NASDAQ: MNST ) is a similar type of deal, it’s not exact but it is similar. The real trade was first thing in the morning here. But you could see some more upside here, I got them every day. Every day I am looking at these and I have started to post a fair number of them at Stock Market Mentor.

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