Two big board trade ideas today

Published: Wed, 11/23/16


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Hello fellow investors / traders,
 
I hope you've all been doing well in the markets. This post election run has certainly got some legs to it. It may be getting a little overextended so please be cautious with your positions, but an extension of the breakout to all-time highs, at least in the short term, is certainly possible.

We have a couple of potential trade ideas for today - one a short term bounce play, and the other a potential longer term swing play.

Let's start with the swing trade idea first.

TowerStream Corp (TWER)

TWER closed yesterday at $0.55 - a whopping 95% off its 52 week high. You can see the steady prolonged sell off in the chart below. 

There is the possibility we could see one more day of accelerated downside, but I like the risk v reward at these levels - especially if we get a gap down today.

Therefore I wouldn't necessarily go all in at these levels, but look at add to your initial position as we see some upside confirmation.

Back in June TWER made a prolific 100%+ move in one day. At its current price, we think a 100%+ move in the short term could be even more likely.



TWER recently announced some improved earnings that saw Q3 net profit increase to $525k, its customer base increase 18% and its long term debt reduced by 14%.

Check it out in more detail at http://finance.yahoo.com/news/towerstream-adjusted-ebitda-increases-525k-141500181.html

According to Yahoo Finance, TWER has a market cap of less than $5 million, and a tiny float of under 4 million shares.

What's even more striking is the short interest. TWER has a short interest of around 1m shares - that means 24% of its float is short.

I believe we could see an epic short squeeze coming soon.

The short interest in TWER is huge, and when there is sentiment reversal and/or a catalyst, and shorts start to cover with momentum traders jumping in, this rally could be big and fast.

Towerstream Corp (TWER) is a leading Fixed-Wireless Fiber Alternative company delivering high-speed Internet access to businesses. The Company offers broadband services in 12 urban markets including New York City, Boston, Los Angeles, Chicago, Philadelphia, the San Francisco Bay area, Miami, Seattle, Dallas-Fort Worth, Houston, Las Vegas-Reno, and the greater Providence area.

You can learn more about TWER at their website http://www.towerstream.com/


Now let's turn our attention to our other day/short term trade idea.

DryShips, Inc (DRYS)

Let me be clear, this is a day/short term trade idea only. I'm not interested in the fundamentals of the Company.

Check out the chart below, DRYS ran from around $4 to over $100 in just a few days, but then came crashing back to earth over the past few days.



I think this could be set up for a substantial "dead cat bounce" today. It closed at $6.22, just above its low of the day $6.10 - so this will be a key area to watch today.

This trade is risky, but because it's fallen so much from its highs, I think there could be some short covering that momentum traders will pile into. 

Two things to be careful of trading DRYS - a gap up that is sold into at the open, and a morning selloff.
 
 
All the best out there today.
 
 
To your trading success,
SmallCapMomo.com

 
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