Re: Daytrading ALYD
I've gotten several e-mails for advice in how to daytrade ALYD. Prior to becoming 100% ALYD several weeks ago in anticipation of the NASDAQ listing, I had been trading semiconductor stocks (my "home" thread on SI is called "Stock Swap"). The semis are NASDAQ listed, "normal" P/E, high volume stocks with established trading patterns-- the opposite of what ALYD has. Therefore, I don't have a clue how to trade it.
I did study the IMRS and ZITL charts and although it wasn't a straight ride up for both, there weren't too many dips. In other words, I really couldn't say even in retrospect that one could have sold here and bought here to pick up a quick 10%. As for ALYD, certainly one could have sold at 22.5 and bought at 19, but the window of opportunity was slight and the stock closed at 20. Call it pure speculation on my part, but if you were a MM and you knew there were people who sold and were waiting to buy back at 18 or so, wouldn't you move the stock up a bit and "force" them to jump back in for fear of missing the next run? If so, then the volume should pick up when the stock hits 22 or so.
We all know there are more contracts coming and a NASDAQ listing. The more ALYD creeps up in price, the more momentum players it attracts, the higher the volume-- which is all the MMs want. Each new contract validates each new move up. Therefore, I see little incentive on their part to allow the price to drift down except suddenly during the day to kick in some stop orders and shake out some shares. Yes, there may be some opportunities, but without real time quotes in front of me, I'm not sure I want to temp fate.
- Jeff |
