Tuesday, October 6, 2009

Spider Sense:

I mentioned PUDA as one I didn't own that looks good.   Up huge on Monday.   After a few years of trading and observation -- most traders begin to develop a spider sense (some call it 'instincts') and they just load up on a name because they know it's going to run.

Well, one stock I do own is INSM and today I started getting that feeling.  I added more shares today.  This is one of those deep value plays I'm following my new blog-friend Jae Jun into.  I knew when I bought it the technically were pretty crapola and sure enough, it dropped almost 10% after I bought in.

But when you start to see the charts getting bullish on a deep value name -- like ROIAK recently -- it pays to get heavy and then (here's the tough part) do nothing.

INSM has the mother of all gaps to fill (see my chart).   Good luck to all, and to all a good night.


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