The no brainer play of the day is brought to you by the letter P for Profits and the symbol $. China Precision Steel, Inc. (NasdaqCM: CPSL) is without a doubt the highest probability runner here on the back of China commodity stocks ripping higher. Look at the charts of Sutor Technology Group Limited (NasdaqCM: SUTR) and China Direct Industries, Inc. (NasdaqGM: CDII). Both stocks are ripping over the last week and well on their way to 50% or more gains.
China Precision Steel, Inc. is in the right sector being: Steel. Look at steel stocks like United States Steel (NYSE: X) on the charts. This stock has soared as well. The last arena to conquer for a short term swing trade is China steel plays. With most of them already running, the last one is China Precision Steel, Inc. While it trades at $2.25 I have accumulated here and below over the last week in anticipation of this eventual run. Time will tell if I am right but with the moves in SUTR and CDII, I think it is a ticking time bomb. Of course this is just my humble opinion.
The sympathy play is one of my favorite high percentage plays that I utilize. I am giving it an extreme upside bias with a target at $2.75. However, I do believe it has a high probability of getting over $3.00. I will look to start taking profits as it gets into the target area.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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