ASPS | Stocks Trading Idea for Altisource Portfolio

Stocks Trading Idea for ASPS | Altisource Portfolio

This week, sitting at the top of the “Trend Change Lubricant” Top List from Trade Ideas technology is ASPS. With a float of only 18 million shares, 67% of that is held by short sellers. ASPS had plenty of time to recover from the steep drop in sympathy to news in another company. The chart shows an ideal setup for this type of trade; a narrow range base looking to move higher out of that base with a high short float % to help fuel the breakout.

Note- The average daily volume on ASPS is a bit low at 132k shares but if the stock breaks out, relative volume could tell the story. It would be nice to see relative volume readings above 2.0 if the trade triggers. This would mean the stock is doing double the normal volume for the day.  If not, use your own discretion on volume.

image of ASPS stocks trading chart

ASPS Entry Strategy

The entry is conditional of a trade at 22.12 just above the recent high of this tight range. The suggested stop is any trade below 20.45. The suggested target is simply a near term high at 25.35.  You can see on the chart below the graphical representation of risk and reward for this trade. As always use only the amount of shares that would equal your maximum dollar loss should ASPS trade below 20.45.

image of trend change scanner with ASPS highlighted

image of Trade Ideas banner

Footnote:  This is a table showing the maximum profit for all past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering the exit of these positions. The trades outlined in red eventually hit their suggested stop prices, so you can see the importance of timing and harvesting profits along the way when you can, especially those that move above 10%.

image of trade ideas trding profits for 2017
*Assumptions
Targets are not absolute. Targets involve timing. Profits can and should be harvested along the way.
Risk to Reward ratio ideal is 1:3
Trades of the week that do not reach entry prices are not considered live and are expired at the end of the current week. (ORCL and JNPR)
TOW Rules: 20% Rule.  If a performance is up 10% and gives back 20%, take the 8 and run. (Profit Save, Trailing Stop).
Stocks that gap up over the entry price are considered up to the discretion of the buyer as to the entry price (WETF)
Happy investing!
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Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

Trade Ideas

Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

    One thought on “ASPS | Stocks Trading Idea for Altisource Portfolio

    • hicham.itani@gmail.com'
      June 21, 2017 at 7:49 pm
      Permalink

      thank you
      keep up the great job
      you guys are amazing

      Reply

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