Why I Bought $SGYP Synergy Pharmaceuticals Today – Video Recap

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Synergy Pharmaceuticals Inc
NASDAQ: SGYP

Good afternoon Traders!

This was a tricky week with choppy markets driven by news out of Greece. We had a bit of a recovery on Tuesday but Wed and Thur were choppy again. Pre-market we had a few gappers this morning but I noticed the biggest gappers were stocks surging up pre-market on news of either a merger or a buyout. I typically avoid trading buyouts because they trade on higher volume but rarely have very much range. On a buyout or a merger the price has usually been determined and that reduces the potential for price action. The exception to this rule is when there is speculation that the government may not approve the merger or buyout due to monopoly laws, or when there is speculation that there may be a bidding way for the company.

Lack of Momentum Means Tough Trading

Unfortunately today the stocks surging up were primarily on low volume and with catalysts that didn’t interest me. I did like the look of SGYP this morning for a long over 9.52. I called this out in the morning as a potential gap and go trade. I apply my Momentum Trading Strategies to these stocks that indicate they will open higher pre-market. I bought SGYP right under 9.50 and sold half for a small profit and the other half for a small loss. The stock is extremely choppy does a lot of whipsaws. It ended up running a bit after I sold but I think I did the right thing by bailing out and taking the small loss.

 

SGYP5

SGYP Synergy Pharmaceuticals Inc

Over the last few weeks SGYP has been extremely active proving that despite the 80mil share float it can put in big moves. Unfortunately the stock has also been extremely difficult for day trading because it’s a crowded name. This means lots of traders are jumping in and out and this makes it more difficult to have clean moves.

The best chance for successful trading will be after the holiday weekend starting next Monday with the pre-market session and then the opening bell at 9:30.

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Ross is a US equities trader with a focus on short term momentum bursts. He obtained his Bachelors Degree in Architecture and began his career working in Manhattan at a design firm. During that time he invested part-time, actively followed the stock market, and focused on refining his trading skills. After 10 years of part-time trading Ross knew the key to success as a full-time trader would be Risk Management, Choosing the Right Stocks, and Trading the Right Chart Patterns. He focuses each day finding stocks trading on heavy volume due to a catalyst such as press releases or earnings. He trades these stocks using simple geometric patterns and strict risk management techniques. In 2012 Ross began teaching the fundamental elements of trading in his Live Day Chat Room He continues to trade live in his chat room and teach trading courses in the evenings. Ross is the chief editor at Warrior Trading News. You can contact Ross at ross@warriortradingnews.com Legal Disclaimer – This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author has no business relationship with any company whose stock is mentioned in this article nor is receiving compensation from any of the companies mentioned.

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