Dummy Trade of the Day - U.S. Global Investors, Inc. (Public, NASDAQ:GROW)

In reviewing my watchlist over the weekend, I noticed that GROW was setting up as a potential doji morning star reversal pattern from a key support level. If it could open slightly higher than Friday's close, I would stalk it for a potential reversal. I was happy to see the gap up on the open and waited for a perfect entry. It took quite some time but once it managed to break through the 10 and 20 MA, I started looking for a low risk entry. Following the break, price consolidated above the converging MAs on low volume. As soon as price took out the high of the 17th bar, I went long. I took my profit on the first sign of weakness, because GROW has a wide spread and I didn't want to give too much back.

At the end of the day, GROW closed a little too low to qualify as a doji morning star, but the strategy was a profitable intraday.

SNDK was another watchlist stock. I figured it had one good day left before it started to consolidate its recent gains. SNDK gapped up on the open and carved out a wide range bullish stick. After the OR, it started to consolidate the gap on declining volume. I took a low risk entry on a break of the 4th bar high. My target was $45.25, but we didn't quite make it, so I let it go at $45.00.