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Monday, July 8, 2013

Stock and ETF newsletter 7/8/2013: $KNDI, $NOK, $RGC, $DIS, $SNV, $SVXY,


$KNDI

I was considering this as a day trade candidate but converted to a swing. The setup is just good. Bounced on the gap up zone and broke up the down trend with volume. The better thing is there is more than 10% short interest here. Really want to see a squeeze.
I stepped in for pure TA setup, not for the fundamental. From fundamental side, there is nothing changed to me. $KNDI still just integrates EV – no patent in battery, motor or any control module. I definitely don’t see it as a potential “Tesla”.
There are two main events that triggered the squeeze today one is the official 13G filing of 5% passive stack and another one is from the Twitter of Jone Carnes @carnesjon (alfred little): “13G filing shows Heights Capital Management (SIG) client purchased 5.8% @$6. Sell-off is overdone. I'm long.” Please notice that the $KNDI already announced the direct placement of $26.3 million in 6/26/2013 and published in its homepage in 7/1/2013. And also notice that Alfred Little was selling short $KNDI in June.
Bottom line: I am still holding full position in Long (with great cautious).
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$NOK

It continues its break up and moving higher. Holding pretty well. I’m still holding full position here.
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$SNV

Today news is out that government will have more strict capital requirement on banks. Basically moved from 3% to 5%. I don’t see it as a big negative and also don’t see a negative react in $XLF. I’d like to hold $SNV longer. The only concern here is $SNV may give in at this up up-trend line. Will watch it closely in coming trading sessions.
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$RGC $DIS

$RGC continues higher today and starts to challenge the recent $19 resistance zone again. The setup is definitely there and I really want to see it break up with good volume. The $DIS is also displaying encouraging potential break up movement. I just need to see some volume on both of them. Still holding full position in $RGC.
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$SVXY

I out all $SVXY today with good profit. It has been up 12% since the dip in 7/2. I just don’t want to risk the profit into the earning season.
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