• Portfolio Management for December 4, 2017

    Friday's market dip on political news was a good opportunity for buying interesting stocks: AAOI and BEAT. Both are speculative trades as both stocks have been trying to bounce from lows.





    BEAT is probably less risky as it broke out already on the AAPL news deal and pulled back to the base of the breakout on a positive EV pattern.



    This is the EV pattern at the entry time.



    Note that the stop is about 10% below the entry price, which tells us of the risk and hence only 1/2 position was bought.



    AAOI rotates its entire float in six days, which can make price moves happen fast (up or down.) For now, AAOI is in a stable Supply zone: most recent buyers want to wait and see.





    This is the EV pattern at the entry time.



    RACE is continuing down for now, but could bounce on Monday after the Tax bill passed Senate (I doubt so, because the US$ should normally bounce against the Euro and RACE is a European company with a very High PE ratio. On the other hand, there could be speculative buyers believing that rich US individuals will rush to buy sports cars if the pay less taxes.)







    The trade ideas for next week are below. All attention will be going to the general market and not individual stocks.