Hello, hello! It isnt often I put out a free alert but I think Ive found a
winner that could turn another 20% short term, possibly sooner. Yesterday I put
out JVA to my paid list at $7.53 after buying 1,000 shares which I still own. I
have a goal of $.50 to $2.50 per share on its way to $10 short term, possibly
more but Im not a greedy trader who usually looks for 10% on trades. My
reasoning is simple and logical. 1. Coffee, the commodity, is down about 28%
since its peak in May meaning traders can take advantage of the drop in coffee
by looking at coffee retailers. 2. JVA took a hit on the chin after their most
recent earnings at which point its fallen from roughly $18.50 to its low today
of $6.90 meaning its definitely oversold. The markets have been choppy to say
the least recently but JVA is starting to establish support and make the turn.
Once a bottom is in, short sellers start to watch much closer. In addition, I
think we start to see the markets head up into the end of this week. 3.
Technically, JVA is printing a hammer candle rejecting lower levels with support
at $7. Now its not a perfect hammer in which the lower shadow would be 2/3s the
size of the real body but as of this report its pretty darn close. If we close
at the HOD today then I suspect itll be enough to attract bottom feeders. 4.
Most importantly, short interest on this stock is big. I have two brokers and
have not been able to get shares at either for quite some time now. This fact
means any turn on the chart could cause shorts to start locking in profit and
their covering would bode well for early entrants i.e. my $6,200 LOCM win gaming
the short squeeze just days before it ran . Now if you dont know what it means
to be short and why theyd be looking to cover soon, then email me at
jason@jasonbondpicks.com and we can chat about that. So here is the trade idea
if youre interested. Mind you, I have 1k JVA at $7.53 and am looking to add 1k
more before getting $.50 to $2.00 per share out of this trade short term. First,
JVA must hold $7 to stay in play. Yes there is support below but Ive learned to
keep my losses small and let me winners ride. Today marks the first turn on the
chart since it tried to rally around $11. With the MA(200) at $9.98 thats at
least 20% profit from here. If you keep a tight stop of $7.38 or todays support
youre looking at excellent risk to reward. Keep in mind, JVA is a tiny market
cap of $42 million so buying market isnt always wise, better to use limit orders
on a stock like this, unless its flying that is. Good luck, hope to see you in
chat soon. The Teacher!!! Jason Bond
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