SPNC

[Ramsburg]

Profile: The Spectranetics Corporation engages in the development, manufacture, marketing, and distribution of single-use medical devices used in minimally invasive surgical procedures within the cardiovascular system in the United States. It offers its devices in conjunction with its excimer laser system.
Website: http://www.spectranetics.com
Market cap: 336M

Trading Idea:
SPNC had a recent rally, after releasing good numbers for Q2. The stock opened a big gap up and is now trading with low volume and seems unable to consolidate the recent gains at these levels.
We expect some correction from here, probably a fill the gap move, nevertheless SPNC is still trading near the recent highs, so the risk / reward on this short is acceptable and an easy trading setup can be placed.

Trading Plan:
Sell Short SPNC today at or near the open, and set a buy to cover stop level at $13.52 for this position.

Regards,

[nullzero]

Looks good ramsburg

[Ramsburg]

Update:
What strange technical behaviour for the last 2 sessions: a reversal candlestick on Thursday, followed by a bearish session on Friday. The overall shorting pattern is still there, so the trading plan will be the same for now:

Trading Plan:
Hold SPNC short with a buy to cover stop @ $13.52

[Ramsburg]

Update:
The company posted the delayed 10Q filling with some minor corrections from their previous guidance:
SPECTRANETICS CORP Files SEC form 10-Q, Quarterly Report
- SPNC technical pattern is still showing signs of a need correction; we expect it to fill the big gap between $10.98 and $11.81.

Trading Plan:
Hold SPNC short with a buy to cover stop @ $13.52

[Maestro]

I failed to short-sell SPNC the other day. What do the charts say: is id still a good short play today?

[Ramsburg]

I failed to short-sell SPNC the other day. What do the charts say: is id still a good short play today?

Hi Maestro,
SPNC is acting kind of neutral for the last few sessions, it was unable to perform a new relative high like the broad market, but on the other hand it didn't start the filling the gap move yet. I think our plan is tight and still has a good risk / reward ratio at this point.

Update:
No special update today, we'll stop this position if it performs a new relative high above $13.50.

Trading Plan:
Hold SPNC short with a buy to cover stop @ $13.52

[Ramsburg]

Update:
Yesterday's session was bearish for SPNC, not being able to perform with a overall market rally in place. Volume remains low, now we just need a drop bellow $12 to see if we start getting some downside momentum. Let's wait...

Trading Plan:
Hold SPNC short with a buy to cover stop @ $13.52

[Ramsburg]

Update:
SPNC made the lowest close price of the last few weeks, some technical indicators are now showing clear weakness, and the technical pattern is now looking as broken symmetrical triangle or some kind of island reversal top, in either case it doesn't look bullish at all.
We'll stick with the same plan for now.

Trading Plan:
Hold SPNC short with a buy to cover stop @ $13.52

[Ramsburg]

Update:
Finally the move that we're waiting for... After several sessions showing weakness, SPNC had its first sell off into the gap area and downside momentum is high.
Our goal was a fill the gap move, so we'll be setting a buy to cover limit order near the low range of the gap to close this position if we get the chance near $11.00.

Trading Plan:
Hold SPNC short with a buy to cover limit order @ $11.05 and buy to cover stop @ $13.52

[Ramsburg]

Update:
Another bearish session for SPNC, the stock has now filled half of the gap area. We'll stick with the same plan.

Trading Plan:
Hold SPNC short with a buy to cover limit order @ $11.05 and buy to cover stop @ $13.52

[Ramsburg]

Update:
SPNC had a small consolidation near $11.50 and dropped again to new short term lows. Downside momentum is stable, so we expect to close this position soon according to our trading plan.

Trading Plan:
Hold SPNC short with a buy to cover limit order @ $11.05 and buy to cover stop @ $13.52

[Ramsburg]

This short Position was closed today @ $11.05 following our trading plan.

SPNC finally filled the gap as expected, the downside momentum was really high today, taking SPNC significantly below the gap area and our exit price, at the end of the session the stock recovered and closed near the highs of the day and above our exit price. Volume was strong and above average, suggesting some kind of selling exhaustion here.

We'll keep SPNC on the watch list.