David at the Oxen Group recommended four trades for us over the last four trading days. Here’s how they worked out:
| gps | $16.99 | $17.67 | 4.0% | |
| tm | $80.77 | $81.72 | 1.2% | |
| srs | $18.06 | $18.60 | 3.0% | |
| dug | $16.68 | $17.35 | 4.0% |
The new stock trade for today is a short sell in TLAB. Sell within first 10-25 minutes. I’ll post more details in the morning. – Ilene
Short Sell Recommendation for TLAB:
The Oxen Group, for Thursday, is playing its buy as a short sell for tomorrow on Tellabs Inc. The telecommunications provider is set up for a perfect intraday short sell. To begin, Tellabs will be suffering from the Cramer Effect tomorrow. The
stock was recommended by Cramer on Mad Money last night. The stock jumped up 4% in after hours on the positive recommendation and no other news that would affect the stock. That kind of jump signals that this stock is ready for a major gap up. The Cramer Effect, however, is not a phenom that lasts long. We are thinking it will last long enough for you to sell at close to a daily high, and the stock will pullback from that point. For one, futures are already down in pre-market trading. The only large indicator is jobless claims, which could be powerful but not enough to match the other side of this setup, Tellab’s technicals. The stock is heavily overbought on slow stochastics, and it has a diverging K & D on fast stochastics in a downward movement. This means that the stock is trending down in the shorterm with selling, and it is picking up at a more rampant pace. The stock just passed back inside its upper bollinger band today, as well. It all points to some major profit taking at the beginning of the day, setting up a short sell. Further, if the market is bearish, which it looks more likely to be, then that will benefit the pullback even more so. Get in early on this short sell!
Entry: Recommend selling within first 15 minutes after slight runup.
Exit: We recommend exiting after a 2-5% increase.
Upper Resistance: 5.00 – 5.20
