Back to back green futures, heres to hoping the market can hold the gap this
time unlike Tuesday and Thursday. U.S. stock futures rose on Friday, as
investors appeared to brush aside ratings downgrades for several major banks and
awaited U.S. consumer-price data. The U.S. economic calendar is fairly light on
Friday, with the November consumer-price index due at 8:30 a.m. Eastern time
Shares of Zynga Inc. will start trading on the Nasdaq on Friday. The social-game
maker priced its initial public offering at $10 a share Thursday, at the high
end of the expected range. This bodes very well for our GLUU swing, more on that
below. GEVO saw the news first in Sykes room and had to alert the deal with
Coca-Cola because it was one of the best catalysts Ive seen in a while. Sure
enough in at $6.10 out at $6.92 in less than an hour for about $1,700 profit.
Then as it shook out traders that afternoon I bought again just $.11 above my
initial entry on the pullback. My reasoning to buy again after winning is
simple, I figured a modest 8% gain (Open $5.73) was not a true reflection of the
impact the Coca-Cola deal will have on the stock. Goal is $7 -$8 short term with
a stop at or near entry. Here is Thursdays price action in 5-minute Japanese
candlesticks . GLUU market gap yes but then it traded down all day which
prevented GLUU from running. Today I think well see GLUU fair well but it could
get volatile so guard your position well. First thing Im hoping for is an
uptrend in the market. No more gap and fizzle like Tuesday and Thursday. With
Zynga pricing at $10 or the high end of its range it suggests a strong demand
from institutions which is great. Todays open for Zynga should be $13 or higher
I think and if the stock trades well meaning its not straight down then I think
GLUU could hit $3.60 today. Those are two big ifs but thats the catalyst Im
playing here. Goal is to be out today but if things look better than expected
theres a possibility of letting it ride into next week. GLUUs Beta is almost 2.5
so if it gathers steam watch out. Nothing has changed for LOCM, USAT or HKN so
read yesterdays updates for my existing thoughts there.
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