On Friday, some traders thought Palisade Bio, Inc. (NASDAQ: PALI) was dead in premarket … It had a big squeeze then crashed and gave the move back.
So I can see why some traders might have thought it was over for PALI…
The company did an offering and that’s typically bad news.
And even without the offering, I typically don’t like stocks that give back the entire move.
But PALI was a little different…
So let me explain why I didn’t think it was dead.
And why I actually made it my number-one pick and trade alert for the day.
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Two Ways To Trade PALI
Looking at this chart of PALI in premarket on Friday, I can see why some people thought it was dead. It doesn’t look good….
PALI chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com
With just one red candle on the 2-minute chart, it gave back almost its entire premarket gains.
But if you didn’t think it still had the potential to squeeze — here’s your lesson for the day…
Even after PALI had a big red candle when the offering news hit….
- The stock was still up 30% for the day.
- It was still up 100% from Thursday morning.
- It has a low float of 1.47 million shares,
- It traded 10 million shares in premarket.
- It was a Friday before a long weekend.
So it had all the components for a potential squeeze. I laid it all out in the notes I included in my alert.
PALI wasn’t a dip buy on the bad news…
The plan was to wait for key levels to break. And approach it the same as we have been in the SteadyTrade Team for over a week now! It’s so important I put it in 96-point font.
Almost every day of the last week we had a midday or afternoon move.
Even though the signal price for my trade alert hit in the morning, my proposed risk level never got hit, so you still could’ve made a nice trade following that idea.
And, you could’ve made another nice trade plan buying the high of the day break in midday over $6.
And you could’ve caught a $2+ per share move!
With the afternoon trade theme staying strong, you could’ve made another midday trade in Kala Pharmaceuticals, Inc. (NASDAQ: KALA) for the third day in a row. (Although it has run so high now that it might be out of some traders’ price range.)
I hope you’ve caught some of these incredible afternoon moves we’ve seen lately. If you don’t want to miss another hot stock — subscribe to get my next alert delivered to your inbox.
Have a great day everyone! See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade