Perfect World - A Swing Trader's Wet Dream

I have traded this stock a few times in the past but now I want to focus on it again. Let me be the first to say THIS STOCK HAS VERY VIOLENT MOVES AND NOT FOR THE FEINT OF HEART. If you are a solid long term, long haul investor , extremely risk averse, I STRONGLY ADVISE YOU TO STAY AWAY.

With that said, check out this Chinese video game developer Perfect World (PWRD). They are makers of popular RPG's (Role playing games) exclusively in the Asian markets. They have no subprime exposure, not levered to the U.S. economy, does not lend money, has a very solid subscriber base, and have blockbuster games that are MEGAHITS in Asia. Being Asian myself I can say definitively for Asian people outside the U.S., video games are just not just "games", it is a culture. This mentality allows companies such as PWRD to have consistent revenue flows. They also file regular quarter earnings report. Check out their website here @ http://www.wanmei.com/index.htm Very impressive work they do. The company also have partnerships with Intel and Nvidia who helps them develop their 3D modeling technology.



Notice these monster weekly moves. I mean you're talking from the high teens / low 20's all the way up to the HIGH 20's to even possibly 30 before pulling back. All this happens within DAYS or in this case, my ideal time frame in 1-2 weeks.

This stock defies all chart patterns. Price action can violate moving average support just as easily as they breakout. But from my observation in this stock from the past 6 months, it has always presented great opportunities to load up in the low 20's (anywhere below 23) and great sell or short opportunity near 30. You need some serious balls of steel to sack the volatility. But it can pay off very handsomely. I've traded this before at 20 dollars on 3,000 shares and booked profits at 30 in 2 weeks. You do the math.

It made a gigantic move up again today (up nearly 6% intraday at 10:35AM PST) so I'M NOT telling you to go all in today and buy. But just wanted to post this up. If you got a serious tolerance for volatility and risk, STUDY THIS CHART AND THE COMPANY NOW so you can be ready to pull the trigger when the opportunity presents itself. And you can be damn sure I will be watching very closely to pull the trigger on this baby again - Short or Long. And when I do, you will know about it.

-DL