Cvtx Strong Buy

Right now I see a possible double top forming on the daily and the 5min chart with fairly strong resistance right above at 12 area. I also see a cup formed on the 60 min with no handle yet. The stock also closed right at the 200dma. Too risky to enter now IMO as there is no continuation pattern to lower risk. Best case scenario is CVTX pulls back slowly to the 10.50 area on decreasing volume and breaks through 11.50 on the 3rd try. Even on this ideal 3rd try triangle breakout situation my target wouldn't be more than 14.00 - 15.00 area. This area is equal move resistance as well as 52 week high.

Cheers!
 

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Wow, guess this is a daytrade stock. Screw going long. in again at $11.86 for 2000 shares. This is like a journal now, so I'm gonna stop posting.
 
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You know that Cramer is in on this on meaning that it will probably have a few more up days to go before it takes a dump. I would just get in on the pullback today and then see what happens in the days to come. I say that it probably has another dollar or two up from here. Probably 10-20% and then it will dump or it may even go higher depending on how far Cramer wants to push this thing. There might appear more articles about it on the street.

A lot of money can be made by simply longing the speculative Friday stocks on Monday at 10:30-11:00am. You basically wait about 1 trading hour for the speculative fever to cool off, then long it.

In this situation, I would think that now the price got over that lip you see on the chart above then we at least have 2 points up. I say it will probably get to 14 dollars in the days to come where a possible pivot point might exist.

I wouldnt long all speculative Friday stocks, just ones that make *obvious* sense on the chart and then quickly dump about 3% before what I believe the target price to be and then move on to the next Speculative Friday.
 
CVTX is a great example of Cramer's speculative Friday plays. These things usually last a few days beyond the pump. Today we are up another 4%. I suspect there will be some profit taking on Weds, but it may just get to 13 dollars. People might take profits on Weds-Friday so they can free up cash for another speculative Friday.

If you play this right, then you will have a 5-10% week every week off of Mr. Cramer. I'll repeat my thesis here, loud and clear.

1. The chart and fundamentals have to favor the play.
2. Dont get in during afterhours. Wait until 10:30am on the Monday after the speculative Friday and "buy the dip". Hold until Tuesday or Weds, but get out definately before Thursday.
3. Bollinger Bands seem to work well. Price doesnt live far above the top band (for long).
4. Use common sense and take into account other events like earnings calls (remember Dick's).
5. Take into consideration such metrics as the number of shares in the float, # shares shorted, etc. Can the stock be easily manipulated by a small crowd of buyers? Will the pump set off some short covering?

In regards to the fundamentals of a Cramer pick. I would never long anything that seems "Gonzo" like he once picked some company which involved an energy beam that troops use on the enemy.

CVTX may go higher after Thursday, but why take the risk when we have another speculative Friday each and every week.
 
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