|A gizzard trader looks for stocks that|
1)are under 12.00
2)have had a terrible past
3)usually have 80 million shares outstanding or less
4)do not have a lot of debt
5)have a recognizable pattern(double bottom, head and shoulder bottom,ascending triangle, etc...)
6)have had a 1 million share trading day in its recent past
7)are spurned by most professional traders
8)do not have sizeable overhead to overcome
9)provide an opportunity for a 25%-200% return in a short period of time..
10)are usually found in a hot sector
1.Bull Popper- a gizzard that has spiked upward with 3-10 million shares traded, and now is in pullback phase...The gizzard trade calculates how far the stock will pull back before rebounding...The bounce is the popper.....
A. The stock moves up over a course of one-three days, 40% or more from its closing price on the day before the move....
B. The stock has to make its breakout during the trading day, not a gap up..
C. Once the stock reaches its high, remember that number..
D. Now subtract the closing price(the day before the move) from the new high...Multiply that number by 66%....Take that number and subtract it from the number of the new high...This will give you the pullback area, and where to buy the stock for the bounce..
E. Now subtract the difference between the pullback area and the high, multiply by 25%...Take that number and add it to the pullback area, for the target on the bounce....Remember, once the momentum dies on the bounce, get out, even if it doesn't reach the target area...
2.Overhead-Large volume areas of the past that create resistance to any sustained upmove..
3. We are familiar with all Cooper and Connors trading strategies and sometimes seek out their strategies for finding stocks with potential for upmoves...Examples: 180's, Expansion breakouts, 1,2,3,4's; Vthrusts, Jack-in the Box, etc...
4. We are followers of Pring, Murphy,Edwards and McGee...
We are pure technical traders....We are not fundamental traders........