How I Called a +1,099% Winner

Is it possible to predict a +1,099% runner before it happens? No.

We don’t predict, we react. In fact, if you’ve been around for a while you know that I would never tell you to hold a scammy pump through a +1,000% move. I’d be screamin’ at the top of my lungs telling you to lock it in based on your trade plan.

Wall Street tried to buy my market-crushing secret.

But I’m NEVER selling. Here’s why…

The Big Picture

That being said, it’s fun to look back when the call you made a week early plays out perfectly. Especially since most traders had forgotten about it.

StocksToTrade Advisory members saw China Pharma Holding, Inc. (NYSE American: CPHI) on the July 15 midweek watchlist.

I called an entry at breaks over $1.60 for a follow-through technical play. $1.60 was the Oracle resistance point as seen on the chart below (the bright green line).

Here’s the power of resistance points.

When they finally break, they’re explosive.

Now, a lot of times it’s only a matter of hours, and CPHI took four days. But instead of a 100% or 200% move like we see regularly, all that pent-up pressure got released…

CPHI turned into a 1,099% runner from the breakout…

What You Should Know About CPHI

First, it’s another low-float China scam stock similar to Zhengye Biotechnology Holding Limited (NASDAQ: ZYBT). I recently used ZYBT as an example to show when a loss is a good trade.

Second, there were a bunch of volatility halts during that big run on Tuesday (July 21).

Again, I would not encourage anyone, no matter how experienced, to stay in a stock doing halt after halt.

The only way to trade it responsibly and professionally is to make a trade plan, take your shot, and follow the plan. Win, or lose.

So, to be clear, nobody made 1,099% on CPHI.

I’d guess the only people who even considered holding for that long were bagholders from one of the previous CPHI pumps. Hopefully anyone in that position had the sense to get out.

Third, the company did exactly what you’d expect in this situation:

• On July 21 the company commented on the unusual market activity. This is a classic “there’s nothing to see here” disclaimer with these pumps.
• On July 22, it did an offering, raising $5 million to stay alive.

There are many takeaways here, but there’s one I believe every trader, new or experienced, should implement right away if you’re not already doing it.

CPHI makes my case for why you should build, and maintain, a rolling watchlist. Smart traders use a rolling watchlist. CPHI is a perfect example of how big a secondary move can be, even if you’ve put a stock on the backburner.

My Take

My friend, if you’re reading this and you’re not already a StocksToTrade Advisory member…

The best time to join StocksToTrade advisory was when we first started it. The second best time is now.

I’m not saying we have +1,000% calls every week. But I believe STA is one of the finest introductory trading education memberships anywhere. Learn more about STA and what I call Money Mondays here.

Watchlist

After the closing bell on Tuesday, Super Micro Computer, Inc (NASDAQ: SMCI) announced it expects gross margins to double due to a “record level” order backlog worth $60B.

SMCI hasn’t seen as much long-term upside from the AI infrastructure buildout as other data center stocks. The revenue news is welcome and could help it begin to trend upward.

On My Radar

• Advanced Micro Devices (NASDAQ: AMD) is investing up to $5B in Anthropic in return for the frontier AI company using AMD GPUs.
• Intel (NASDAQ: INTC) posts Q2 earnings after the bell today
• Blast from the past: recently I went off on the HOPIUM about OTCs coming back. Seven years ago I went on a similar rant and said “maybe consult your crystals about OTCs coming back.” One of our members made this: