Tuesday, November 15, 2011
PEIX - On My October 3rd Bottom Scan at $.27
PEIX closed at $1.33 today. Such a beautiful move off its lows and while the stock remains overbought, it has some serious momentum on its side. This stock was on my October 3rd Bottom Scan at $.27 a share or only $.02 away from its 52 week low.
Trading stocks that have large, deliberate moves to the downside can make for great trades when they finally rally as PEIX has done.
My bottom scans are not a perfect science. What they do offer are stocks that potentially are poised to rally off their lows. Some of them continue to fall while others can and have rallied sharply the very next day. PEIX did not rally the day after it came up on my scan, but it did offer those who did not know about the stock a chance to look at it and see if they want to trade it for a recovery rally. Those that did are up some 400% today.