CHEETAH TRADING SYSTEM – Page 2

Vonage Holdings Corp VG Stays Alive Today

February 7, 2012April 7, 2011 by Tom

VG managed to hold key support above 4.5 today similar to the way the sp500 managed to REJECT under 1332 today. So I like the symmetry. I also like the fact that we have a small reversal hammer in VG today and a volume shrinkage of 50%, essentially creating a bullish spring. So still long … Read more

VG Vonage Holdings Pulls Back to Support Today

February 7, 2012April 6, 2011 by Tom

I am already underwater on Vonage Holdings by 2.56% today after today’s drop to support. I would like to see VG hold 4.5 support for an eventual move higher. Ideally there will be no close under 4.5 in the next several trading days.

In hindsight entry should have been at the lows of today rather than the price action of the last few days.

It is possible that VG is currently doing a similar Wyckoff low volume retest to the one that occurred in the SLV ETF several days ago. The low volume Wyckoff retest in silver led to the recent huge upside move. Certainly VG is not worthy of comparison to SLV in a literal sense, but price and volume on the most basic level is essentially the same whether we are talking about tech stocks or obscure commodities.

I do see that VG has an unconfirmed earnings date of May 2, 2011 which may complicate matters a bit. Still for now I stay long VG and see if it can hold 4.5 support on a closing basis.

Long VG Vonage Holdings Today at 4.68

February 7, 2012April 4, 2011 by Tom

I went long VG today at 4.68 as Vonage Holdings seems ready to break above the recent triangular down trend line and trade a full candlestick body above this down trend. I would like to stay long VG for a week or two or three as a possible swing trade.

There is nothing ‘magical’ about this trade, but it appears to be a small to mid cap stock that is in a growing business with some near term momentum. So this is a trade, nothing more. I am not looking for a miracle here, but would certainly like to see some nice upside going forward.

VG has had about a 1.5 month sideways consolidation up until today and is constructive for a new move higher. The major challenge level is the 4.94 swing high on high volume that occurred on 2/15/2011. I suspect there will be a bit of selling near that level and maybe even a handle of a cup and handle type situation developing.

I am willing to take ‘pain’ slightly below 4.5 assuming that does occur, but would then like to see a quick resumption of uptrend.