Buying A Beaten-Down Tech Stock

Featuring Dave Floyd

Technical analyst Dave Floyd, founder and president of Aspen Trading Group, is bullish on Applied Optoelectronics (AAOI), which serves as a fiber network supplier for clients that include Facebook and Amazon. Under the right circumstances, Dave believes that shares of AAOI could rise by nearly 70%. He takes to the charts to illustrate his trade. Filmed on June 18, 2018.

Published on
21 June, 2018
Technology, Trading, Micro
7 minutes
Asset class


  • TM

    Troy M.

    24 9 2018 01:02

    0       0

    Hey Dave, what is your timeframe on this trade? I'm also curious where your technically relevant stop loss is placed? Thanks!

  • FH

    Franz-Xaver H.

    24 6 2018 21:21

    0       0


    I agree that it's good to have both the technical and fundamental aspects on your side. So I would feel uneasy to buy a stock with such a huge > 70% short interest. Without knowing the shorts motivation it's just impossible for me to trade it. Holding it for weeks or even months you said.

  • TM

    Troy M.

    23 6 2018 04:45

    0       0


    This stock is up 19% already from where I bought it after first reading and agreeing with your analysis in Q2 Killer Charts. Thanks! Do you frequently use trailing stops, and if so, how do you determine where to place them? Also, where does Elliot wave fall in the range of somewhat reliable indicators?

    Have a great weekend.


  • ss

    sid s.

    22 6 2018 01:11

    2       0

    love this guy.

  • PC

    Peter C.

    21 6 2018 19:40

    1       0

    Does anyone know what the narrative is for the shorts?

  • KS

    Kathleen S.

    21 6 2018 18:23

    6       6

    The markets are fake -- they move based on what a central bank says. How can anyone trade these markets when they are not real, it is all luck and a narrative. And the narrative is controlled -- there is nothing organic or real about these fake markets-- for example when the Swiss Central Bank can print money out of thin air and buy FaceBook or Amazon stock we have left reality and I refuse to place bets in a rigged game. Good Luck to everyone else.

  • CT

    Christopher T.

    21 6 2018 12:23

    3       0

    good trade