Update to Watchlist for 23 December 2013: ALRM, BLPG, MPEL, TRX, UBQU

Since my watchlist from last night was pretty short, I decided to go digging around for some other tidbits that looked interesting and came up with the following charts that I hope you’ll find of use: ALRM, BLPG, MPEL, TRX, and UBQU. Be advised when looking at these that MPEL and UBQU are OTC (over the counter) stocks. If you don’t know what that means, I’d advise you do some research before you consider putting money into them, as they operate a bit differently than exchange-traded stocks, and they tend to be extremely volatile.

Note that volatility is not a bad thing, as volatility is what enables us to make money in the market in the first place. You simply have to be prepared and understand how to deal with extreme volatility so you don’t lose a ton of money and all your hair.

ALRM, which is on the NASDAQ exchange, has just tagged the mid-line of a channel that started in August 2015. I’m not 100% enthused about mid-channel entries, as sometimes they’re just a point where price pauses before dropping down to the lower channel zone, but it’s a very low-risk entry for a potential 20-30% gain. Entry = 27.31, protective stop ¬†= 27.16.

BLPG is one of our two OTC stocks today, and is making what looks like a nice bounce from its lower channel boundary with a potential gain of roughly 80% to mid-channel and about 190% to the upper channel boundary. I don’t know if all brokers treat OTC trades the same, but mine doesn’t allow a market or stop entry, only a limit buy. So in this case I’d set the limit order (which means the price has to be equal to or lower than) 0.032 with a protective stop set at 0.025. Again, manage your risk with a modest position size on these so you don’t get creamed if the trade goes against you.

MPEL (NASDAQ) is making what looks like a nice bounce from its lower channel boundary, with an estimated gain potential of about 15% to mid-channel and 35% to the upper boundary. Entry = 15.73, protective stop = 14.89.

TRX (AMEX) just tagged the bottom of what looks to be a nice trend line (and, by extension, the lower boundary of a long-term and very wide channel), which also happens to be a decent support zone. That adds up to a nice inflection point and a low-risk point of entry. The potential gain is around 125% to the mid-line and around 265% to the upper boundary. Entry = 0.44, protective stop = 0.40.

UBQU is our second OTC stock for today. It’s in a newly formed channel, but it looks fairly clean and we’re getting a nice bounce from the lower boundary. Potential gain is about 60% to mid-line and about 150% to the upper channel boundary. Entry = limit order of 0.014, protective stop = 0.009. Remember: modest position size!

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