Very thankful to have my trading head back on my shoulders. All of our home repairs are done and I see the results in my trading. When you have clear head it makes all the difference in your trading. It allows you to be present in price action and make the best entries.
In that past year I have really learned that low float stocks are great because they can offer amazing moves in price action. Of course, you have to be careful with them because the moves are not always in your favor. These big price moves come because the supply i.e. the float is not always that large and when people want it the price has to go up. A simple understanding of Supply and Demand.
Last week I stumbled on STMP with its big moves and kept it on my radar this week. The stock tends to have big runs in the afternoon after 1pm. The price action can be upwards of a $1 move at a time. This week alone I capitalized with the price volatility on this stock to profit over $9,000. When you spot a stock that is being actively traded it is good to capitalize on the moves while the volume is there.
STMP had negative press this past week trying to really drive the price down when they recommend it is worth $15. This did drive the price down to a low of $69 with a speedy recovery. Once it hit $69 I reviewed the 10 day chart. Down from $90 to $69 in 8 days means oversold to me.
Earnings are due to come out July 28th moved up date, and I anticipate the stock should uptrend until then. It just had a price target recommendation today of $150. I would not swing this to $100, however I did learn from my WYNN trade in the past.
With WYNN I bought it when it was oversold and then they had earnings and opened the new casino. I was in around $55 and thought I was conservative taking $6 a share profit. Oh was I wrong. It ran all the way up to 100 in a month and half. And WYNN wasn’t even a lower float stock.
So I have learned from WYNN and with a float of roughly 38 Million and Earnings to be announced July 28th I believe the price action should be volatile until then and look to recover some of the selloff down from $90.
My swing trades over the weekend are $TYPE (Oversold to me based on news), $ZFGN ( 52 week low this week) $PYPL ( void to fill above 37.52) and $SMCI as it is slowly filling a void.
I hope many of you checked out Trade Ideas Open house this past week. Their software is amazing and the support is unbelievable as well as the free trading room. That’s right FREE everyday.
As always I love hearing feedback from you. It makes my trading more personal and I like to hear how I can help you. If you have questions or comments you can contact me here or on Profitly, Twitter, Instagram, LinkedIn and Facebook.
This blog is for information purposes I am not a registered securities broker-dealer or an investment advisor. The information here is not intended as securities brokerage, investment or as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.