Wednesday, December 23, 2009


I banked some serious coin yesterday in ATHX, eventually amassing 12,000 shares before it hit $3.85. This is a particularly rare setup that I see once every few months or so. Here's how it works:

1) The stock gaps up HUGE, typically a 100% 1-day gainer.
2) Stock fades throughout the day and closes much lower than the open, but still way above the previous day's close.
3) The next day starts with a large gap up within the previous day's range and must always be followed by significant pre-market volume.
4) Buy when the current and previous day's highs are breached on heavy volume.
5) Enjoy the ride. Take what the stock gives you, but don't get greedy.

This stock was the day's example of pure emotional madness. Make sure you're on the right side and never, ever get caught up and trapped in the mania.

Many folks on twitter followed me in and made bank. Congrats to you:

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