Look at Stratasys (SSYS). Here’s your trade. (February 03, 2015)
Everybody’s looking at energy, lets not, it’s a little boring. Lets look at Stratasys ( NASDAQ:SSYS ). This 3D printer was definitely printing a lot of bears between yesterdays really, really horrible earnings and todays open.
I want to look at this; this is dead cat versus dragonfly and they both kind of won. Dead cat bounce, not really, dead cat bounce is when a stock gaps way down and then starts retracing right away. A dragonfly doji is when the stock gaps way down, trades even lower, like way lower, has a really, really long tail, then chews up that tail and comes right back up to the top of the intraday range to close. A doji is when the open and the close are the same.
Here, not that much difference, 37 cents, opened at 57.00 closed at 57.36, which is higher than the open. The reason that I’m talking about dead cat bounce is this, again everybody’s looking at energy and that’s fine it’s about time that stuff started moving, but if this stock starts trading above it’s intraday high today of 57.75 we’ll call it 58.00, this could get a pretty decent oversold bounce.
Not saying it’s going to return to here, it probably won’t, but this is the type of opportunities you want to look for; the big gap down, continuation, then a reversal on massively high volume. What this tells you is this has totally been an exhaustion move for sellers; everybody finally said, “To heck with this, I’m out of here, let me get in to something else.” So watch how at Stratasys ( NASDAQ:SSYS ) trades if this moves back above 57.75.
If you’re a member you’re going to get an alert that comes to you from Stock Market Mentor if that alert goes off at 57.75; it will bring this video back to you. By the way if you’re not a member this is the type of thing that you get, not on every single stock and they’re not all buy alerts, but if there’s something technically that’s important that happens in a stock we set an alert on that and then you get taken to the relevant portion of the video.
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