for those in the PCX long, here’s a sub-target that i added between T1 & T2, since there is a substantial percentage differential between those two target levels. i have also added a couple of objective stop levels below; stop 1 would be a relatively tight stop just below T1 while stop 2 would be a more liberal stop place a couple of cents below that support line. congrats to those who caught it and although this one still has a lot of potential, do not become complacent with your stops as this one can reverse on a dime. unfortunately, it’s still too early to tell if this is just a technically induced short-squeeze boosted by momentum traders or the beginning of a more lasting bottom.
also, remember that a good percentages of my trade ideas often reverse after hitting their target(s) to the penny. therefore, i like to set my limit orders just below to avoid missing a fill. on a low priced stock like PCX that is liquid, one or two cents below the target level should be sufficient. however, if PCX had a spread larger than a penny (difference between the bid and the ask), then you would want to place a stop even lower since a tag of 1.57 before a reversal would likely mean that only those BUYING the stock paid 1.57 while those selling at the same time would have been filled at the lower bid price. always make sure that you are aware of the spread when trading a stock, especially low priced stocks. when possible, i prefer using limit orders to buy and sell stocks with a spread of more than a penny and often i will split the difference between the bid and the ask. using market orders on thinly traded stocks can result in very bad fills, often well away from where you expected to buy or sell the stock. again, not an issue with PCX though, as the liquidity seems to be fine on this one lately.