I sent this stock to my subscriber list on Sunday afternoon as a Speculative Stock of the Week. This is a new feature, high risk, high reward, based on my Trend Following trading algorithm. In the case of the above weekly chart (I'll name the stock, eventually) there is the added characteristic of a mechanical Buy signal based on five waves down, a divergence in the Elliott Oscillator (bottom panel) and a break-out above the down sloping trend line (using trend following signal as trigger in lieu of trend line break-out).
This was a $5 stock a decade ago and in the mid-$3's as recently as 2008. It also has consistent insider buying from it's CEO for the past three years.
Finally, I am using a low-volatility setting on the trend algorithm, meaning its harder to generate signals, so those that are generated exhibit much better staying power. In other words, last week's Buy is significant in terms of intermediate to longer term price appreciation, not a guarantee, just a highly persuasive suggestion for a speculative run.
