One of the greatest things about this wild market is the opportunity for supernovas.
It’s that time again, folks … Welcome to the latest edition of Bohen’s Take.
In this edition, I’ll share with you how I’m living through these crazy pandemic times…
… my small, quiet act of rebellion in the spirit of the Founding Fathers…
And I have an awesomely simple, breaking-news virus play that shot up over 300% in a couple of trading sessions. Gotta love those supernovas!
Plus, I’ll tell you about the coolest addition to the StocksToTrade platform in years.
Let’s jump straight into it…
Table of Contents
What’s the Haps?
Well, gang, I’m trying to make the most of the lockdown life.
I’ve been remodeling our kitchen into a classic farmhouse style. I’ve gotta say, it turned out beautifully — the fam and I are really happy with it.
Apart from that, the weather’s warming up around here, and the air quality has been beautiful. It’s an amazing time to get outside and enjoy nature.
Now, as a day trader and a man with many hobbies, I’m definitely someone who can stay busy and entertained while locked up at home…
But, as a red-blooded American, I’ve gotta say, the lack of freedom to go out and about our lives doesn’t sit well with me.
So here’s my quiet act of rebellion … I decided to grow my beard out until our governor gives us back our freedom. Check it out:
It’s part rebelling against the state and part using this opportunity to grow an epic beard. That’s a win-win in my opinion. What’s also a win-win for savvy traders?.
Catching Volatility Supernovas
On the stock market front, I’m sure it’s not news to anyone that the markets are volatile. There are tons of setups for ready and active traders…
Not sure how to play this insane volatility? Check out the “Volatility Survival Guide” I helped Tim Sykes make. This video lesson is great for this crazy market and for learning how to trade through any volatility. Plus, I share key tips on how to get the most of the StocksToTrade scanner…
That’s key in spotting those supernovas. Did I mention it’s no cost? Go get it now!
It’s been a wonderful thing to see students in StocksToTrade Pro, as well as my friends, like Sykes, do so well despite the rocky overall market.
Setup of the Month: Supernovas
It doesn’t take a genius to know that virus-related stocks have been the hottest plays recently. So many runners lately have been supernovas. And no big surprise that the setup of the month is a virus ticker…
This month’s top setup is for Sorrento Therapeutics Inc. (NASDAQ: SRNE), a biotech firm based out of California.
On the morning of May 15, the company had a press release indicating that it was making some major progress on a COVID-19 vaccine.
Here’s something key … Once you spend years reading press releases from biotech companies, you know to not get too excited about them. Most of the time, they’re just hot air…
But that can still create awesome volatility and monster price moves. Just like we saw with SRNE.
The stock gapped up from $2.50 to open at $4.43. By the next trading day, the stock was trading at over $10 at one point.
The intraday price action was clean. This was an easy-to-trade uptrend, with higher highs and higher lows. Plenty of meat on the bone for nimble traders watching for a solid news catalyst play. But here’s what’s really notable…
What’s Behind the Huge Volume in This Volatile Market?
The big stand out was the sheer amount of trading volume in this stock.
Remember, this is a $5 to $10 stock … On the Friday of the announcement, over 500 million shares were traded, then huge (yet smaller) numbers traded on subsequent days… In the week after the announcement, the stock probably traded a billion shares…
That shows how many traders are out there. It may be because of the commission-free trading brokers. Or because of the stay-at-home orders and more people trading. Or it could be because the president always talks about the stock market…
Personally, I think it’s a combination of all those and more … and it can all add up to those supernova plays.
SRNE was a stellar virus play. I love volatility, but personally, I’m kinda sick of all things virus related … Thankfully, we’re starting to see some other sectors come to life, with more non-virus setups.
Let’s hope the next edition’s setup of the month is in a non-virus sector…
This month’s StocksToTrade feature is incredible!
Over the years, we’ve routinely added new features to StocksToTrade, and they’re always cool and useful.
But I don’t remember any new feature being as cool as what we’ve recently added to StocksToTrade…
I’m talking about the Breaking News chat room.
This is an add-on option for StocksToTrade subscribers. It’s a chat room run by two seasoned Wall Street pros who scour market news all day. They alert the chat room when an ultra-exciting, actionable news story pops up.
The Breaking News chat makes it a lot easier to stay on top of the most pressing news stories that can move the market. It can really help traders find fresh and solid trading setups.
Both Sykes and I absolutely love this feature. It’s now a part of the trading day … And we’re getting some awesome feedback from students and StocksToTrade subscribers.
Come check out a trial to see how much it can help you with breaking news plays … And hopefully, you’ll catch some of the supernovas we’re seeing with this insane volatility!
What I’ve Been Reading
I’ve got two things I’ve been reading that I’d like to share with you this month…
It’s all about having a full life … by having a multifaceted life.
It’s all too common for traders to get obsessed with the markets. Then it’s all they think about, and their lives become one-dimensional. And dare I say, I think it’s unhealthy.
I love sitting in front of the screens watching the market for hours each day. But it’s imperative for me to get outside almost every day. I need to be active. I need to have activities that don’t revolve around trading.
And these non-trading related activities and interests often have a positive effect on my trading. Which brings me to…
Here’s the book I’m currently reading: “Designing TWA” by Kornel Ringli.
It’s about the fascinating design process of the TWA terminal at the JFK airport in New York.
Regular readers of this blog will know that I love the 1950s Americana aesthetic. I even stayed in the hotel that’s located right inside the TWA terminal.
How does a book about all this improve my trading? A lot of ways.
It’s a book about an eccentric genius designer doing something iconic while battling through the resistance that comes with doing something unique.
You could argue there’s somewhat of a real-life Ayn Rand “Fountainhead” kind of story at play here.
It’s great to get an insight into the mind of someone who created something great, and it’s a lesson in history.
As traders, we’re individuals striving to master our craft. We can find some of the best lessons in learning from other people who are masters of their craft. Yep, even if they’re not traders themselves…
“Designing TWA” is a great book. I recommend you check it out — especially if you love architecture or design.
That’s all she wrote, folks.
I hope you’re all staying healthy and sane while we battle through these unique times.
My advice to you is to use this time to improve. Be active, improve your health, become a better trader, learn to read charts better — there’s so much you can do.
This is truly one of the best markets for active traders I’ve seen in years…
For one, we’ve now got the awesome Breaking News chat room on the StocksToTrade platform. You’ve gotta check it out if you haven’t already.
But there’s also the volatility and incredible amount of awesome trading setups we’ve seen in the past few months.
So many of us in StocksToTrade Pro are loving this market. It’s truly been a great time, and I’m grateful for the amazing experience in a struggling world.
Ready to take your trading to the next level? Join us inside StocksToTrade Pro, our elite trader education community.
I love the new Breaking News Trader chat! I’m spending less time reading the news stories and more time watching for supernovas. How much time do you spend reading stock news? Leave and comment and let me know!