You’ve probably noticed a couple of things about penny stocks this week.
We still look for the multi-day runners, but they’ve been few and far between. Also, afternoons have been slow. Remember, it’s just August trading.
Did Wall Street try to hide this AI “Second Chance” Opportunity?
Table of Contents
The Big Picture
A lot of people freak out when August rolls around. If you go back to June and July, some people were talking about a slow summer.
“Slow summer” is a total fallacy. There are really two, maybe three weeks where it’s slow. Guess where we are? This is the two or three weeks in August considered to be truly slow.
Now, that doesn’t mean there aren’t any trade opportunities. It’s just that the afternoons are thinner and there are fewer multi-day runners.
Why? For multi-day runners, we need sustained buying throughout the day.
Like I always say, tickers change but the patterns repeat. That applies to seasonality, too.
It’s Always Like This In August
In August, people tend to trade in the morning and then take the afternoons off. They want to enjoy the last few days of summer.
The August slowdown is not a reason to panic. It’s not a reason to get caught up in uncertainty or FOMO. It’s just a few weeks.
Focus On the Day One-ers
Right now, the best plays are the day-one stocks du jour.
Those are the big, day-one spikers that either start in after-hours and carry over to the next day, or move big in premarket and keep going.
How do we catch them?
Use the Oracle Tool
In my opinion, Oracle is the absolute best tool out there when it comes to the stocks du jour.
For example, I always include a watchlist stock here, right? Ideally it would be a multi-day runner setting up for another leg. Or a short squeeze. But in this great market?
Odds are, the best stocks today will be determined during premarket. That’s when Oracle does its magic, analyzing right up to the market open and giving entry signals a few minutes later.
How Do You Access Oracle?
Oracle is part of the Daily Income Trader (DIT) system.
Also, DIT members get a Pre-Market Prep webinar every trading day at 8:30 a.m. ET. We go over the best movers (all the day one-ers) every day.
Then, I give my tops: the 4 or 5 stocks showing up on Oracle that I think have the best potential.
When the Oracle signals drop a few minutes after the market opens, I add the signals to the Pre-Market Prep notes. It doesn’t get more straightforward than that.
My Take
When things are a little slower, it makes doing your watchlist in the evening a little challenging. That’s just the reality of the market in August. I’ve seen this for 20-plus summers and it’s a short blip in time.
While it’s a little slow, enjoy life and the last few weeks of summer.
Pretty soon we’ll all be locked inside against the cold. There’ll be so many afternoon plays and multi-day runners that people will start complaining about how busy it is.
Until then, stay grounded and focus on the day-one stocks.
Watchlist
ClearOne (NASDAQ: CLRO) moved big after-hours on Wednesday (August 5) after the company filed this 8-K with two announcements related to a reverse merger agreement:
- It entered into an agreement to cancel 437,500 warrants
- It hired a new Chief Financial Officer
CLRO, 2-day, 5-min candles, day-one runner with catalyst and chat pump
CLRO was also pumped yesterday by our favorite chat guy (long may he continue his scumbag ways). It was one of the tops, an early Oracle signal hit, and a double-tap backup at $11.70.
Again, this is a market for day-one stocks. If CLRO holds, look for continuation today or a day-three surge tomorrow. As I write, $7.58 (support) and $13.70 (major resistance) are key levels to watch.
On My Radar
- U.S. strength: Apollo Global Management is set to buy budget UK airline EasyJet for $7.7B
- NVIDIA’s next earnings release is August 26, which means this is likely to happen again
- The Google AI leadership shake-up straight from the science guy
- First batch of post-IPO SpaceX shares unlocked yesterday (I’d love to see it drop below $100 per share)
- Know what you buy: pre-IPO exposure isn’t always what it seems