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Monday, July 8, 2013

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


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).


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


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.


$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.


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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