Thursday, June 9, 2011

JVA day trading

  1. Range 9.06 - 12.85
  2. 52 week 3.67 - 12.85
  3. Open 9.12
  4. Vol / Avg. 3.83M/239,172.00
  5. Mkt cap 66.66M
  6. P/E 23.32
  7. Div/yield 0.03/0.99
  8. EPS 0.52
  9. Shares 5.49M
  10. Beta 2.24

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Amazing!!! What a move, just unpredictable. But it had the clues. The stock moved above the MA all day long. Heavy buying. 


1. Stock share number is 5.49 Million. this is the main reason for this stock to go up by 40 percent. Only stocks with low number of shares do that.  Similar thing happened with TZOO some weeks back because of the same reason. When there are few shares trading, the demand and price go up quickly. 

1. Stocked moved from 9 to 10, then hanged around this 9.75 to 10 range for 40 minutes until 10.10 am.  This is consolidation phase. Then moved from 10 to 11 from 10 am to 11 am. Then 2nd consolidation happened. Then moved from 11 $ to 12 $. Then stayed above 12 $ all day long. Altogether moved 42 percent in one day with heavy buying. 

2. Altogether when in heavy buying there are 3 consolidation phases. Then the stock stays at the top at around the price all day long after 12 noon. 

3. I got into this stock at 9.85, when the stock was consolidating in the 1 st phase, then the stock was moving between 9.70 and 10 for 30 min. Then panicked and sold for 9.85. After selling immediately it went above 10 and never came back.  I had to work today so did not have a chance to get back into the rally. 

4. This understanding about 3 consolidation phases. This graph is the same for all stocks the move above 15 percent in one day. The first phase, the stock opens high 5-10 percent, then heavy buying ensues. Stock moved to 15-18 percent, in this case. 
5. So the important observation I learned to day is that if the stock consolidates a the same price range for 40 min, this is the wait time. Do not sell even if you are in a minor loss position. After 40 min, if the stock moves down sell and if the stock moves up hold. 
6. The stock is above the 30 MA anyway. 

Interesting stuff. 



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1 comment:

Gade said...

If I shorted this stock which I tried to and luckily there were no stocks available, then I would have been turned to ashes.

Never Never try to short a heavily buying stock. This stock went up another 20 percent today. Pure speculation!!!!!