4 Big-Profit Trades for 2014
The Profit Scanner has unearthed a set of major opportunities for the year ahead
The Profit Scanner powered by Recognia allows traders to effortlessly search more than 65,000 equities, futures and forex instruments worldwide to instantly uncover trading opportunities that meet your specific criteria.
This straightforward system is more than just technical analysis and chart pattern recognition; the Profit Scanner tells you exactly what you need to do to capitalize on what the charts are indicating, including targets and customizable stop-loss levels you can use to mitigate your risk.
We used the Profit Scanner to discover four major trading opportunities for 2014 — including a few names you probably wouldn’t have even looked at on your own. You can get in ahead of the crowd and watch as these stocks make big moves in the coming year.
First Magestic Silver (AG): Beat the S&P by the Second Quarter
Click to Enlarge In 2013, the S&P 500 returned about 30%; well, the Profit Scanner has found a stock that’s geared up to trounce that figure before the “sell in May” crowd starts packing for the Hamptons.
Small-cap silver play First Majestic Silver (AG) currently trades around $10.35, but its technical setup shows it could go to $15.50 in short order — just 70 trading days from when the pattern was identified at the end of 2013.
AG has formed a bullish continuation wedge, which indicates that after a temporary interruption, the prior uptrend is set to continue. A bullish continuation wedge represents a temporary interruption to an uptrend, taking the shape of two converging trendlines both slanted downward against the trend. During this time the bears attempt to win over the bulls, but in the end the bulls triumph as the break above the upper trendline signals a continuation of the prior uptrend.
The low-end target is $14.50, but that’s still 40% higher from current levels and far better than the S&P delivered in all of 2013.
TG Therapeutics (TGTX): A 136% Return in Two Years’ Time
New York-based TGTX is a clinical-stage biopharmaceutical company that focuses on cancer treatments. The Profit Scanner identified an astounding pattern that indicates if you get in now, you could more than double your money by the end of 2015. TGTX currently trades around $4.25, but its bullish bottom triangle technical pattern suggests it will more than double to a target between $9 and $10 in 339 trading days.
A bottom triangle formation appeared on TGTX’s chart on Jan. 2, and it tells traders that the price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. A bottom triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then, well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.
Alpha Natural Resources (ANR): Depleting ‘Natural Resources’
Click to Enlarge Finding the find sweet of shorting stocks takes some time.
Because the risk with shorting stocks is that, at some point, you might have to cover the shares and buy them back on the open market at whatever price they may be trading, shorting high-priced equities can be a very expensive proposition. However, the margin requirements for shorting stocks below $5 are astronomical. So, finding a bearish candidate that’s just right takes a lot of looking … unless you have the Profit Scanner.
We uncovered an inexpensive stock that the technicals indicate could drop as much as 80% by 2016. Alpha Natural Resources’ (ANR) chart is showing a long-term bearish continuation diamond pattern. From current levels around $6.60, ANR is set to slide to the Profit Scanner’s downside target of $1.25 to as low as 25 cents in 378 trading days (the bearish continuation diamond appeared on ANR’s chart Dec. 12, 2013).
A bearish continuation diamond tells us the price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend. The Bearish Continuation Diamond begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks downward out of the diamond’s boundary lines, it marks the resumption of the prior downtrend.
AMPD: The Next Tesla?
Click to Enlarge What trader doesn’t love the idea of finding the perfect penny stock, accumulating a large number of shares for just a couple of hundred bucks only and watching it soar to double, triple or quadruple its value? There’s no denying penny stocks are risky, but as a speculative trade, they can be a lot of fun and the Profit Scanner takes the guesswork out of it.
As 2013 drew to a close, the Profit Scanner found an opportunity in AMP Holding (AMPD), a nano-cap stock that makes modified automobiles with an all-electric power train and battery systems. Imagine if you’d gotten into Tesla (TSLA) at the ground floor, and that’s the kind of opportunity AMPD could be providing.
AMPD is in a bullish continuation wedge pattern that could take the stock from current levels to a target of 47-55 cents in just 116 trading days. At the low end of the range, that’s a nearly 250% return! At recent prices, it’d cost you about $135 to accumulate 1,000 shares.
Again, these are very risky trades, but a completely appropriate place for “Vegas” money that you can afford to lose.
The Profit Scanner powered by Recognia is a proven, powerful, easy-to-use investment research tool has been helping traders grow their wealth.
All in all, I expect a positive year for stocks, but I expect the market to become more selective. Keep your eyes on economic conditions and stock valuations.Continue Reading