Apologies for the late letter …
I was transfixed yesterday and this morning by the move on ReShape LifeSciences Inc. (NASDAQ: RSLS).
The stock spiked 175%* Yesterday evening.
And most news services had absolutely NO CLUE why it was running.
Here at StocksToTrade …
- We knew why it was running and
- We had eyes on it right when it started to move.
The larger market doesn’t know how to follow small-account profit opportunities like RSLS.
Everyone else is concerned with stocks like NVIDIA Corporation (NASDAQ: NVDA), because that’s where all the money is. NVDA (by itself) has a market capitalization of $2.8 trillion.
Comparatively, a stock like RSLS barely registers for major media outlets. RSLS has a market capitalization of only $10.3 million.
But for small-account traders like you and me, these small-cap stocks can offer PERFECT profit opportunities.
The stocks spike +100%*, and traders can play the volatility for a quick short-term profit.
Take a look at the chart below of RSLS’ after-hours spike. Every candle represents one trading minute:
RSLS chart intraday, 1-minute candles Source: StocksToTrade
Yes, it’s easier said than done.
That’s why I’m here: To show you how traders profit in this market.
The 175% RSLS Spike
Contrary to what some media outlets will say, the 175% after-hours spike from ReShape LifeSciences Inc. (NASDAQ: RSLS) has a major catalyst. This price action isn’t random.
Take a look below at the screenshot that I took this morning, I blocked out the news outlets’ name so as to not embarrass them…
As a stock trader, it’s important where you get your news.
This is a prime example!
Take a look below at the alert we got from StocksToTrade Breaking News:
RSLS chart intraday, 1-minute candles Source: StocksToTrade
The details of the news aren’t especially important. But there are two major points that make it a HUGE bullish catalyst.
- Allowance for its U.S. patent application.
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- For a penny stock, any positive interaction with the U.S. Government is a good catalyst.
- The intragastric device that treats obesity.
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- There’s been a curiously bullish trend in the market right now that follows diabetes and weight loss stocks. Another example, we saw Hims & Hers Health Inc. (NYSE: HIMS) spike 30% last week after announcing home delivery of GLP-1 injections.
Considering the speed of the Breaking News notification, traders had all evening to play this runner for a profit.
Now, there’s still a possibility we see an opportunity today and throughout the week …
RSLS is still holding some of its gains. But it’s nice to get there first with Breaking News before the bagholders pile in!
There’s after hours resistance at $0.55. That’s our breakout level.
Watch for the stock to make its way toward $0.55 while using existing resistance and support to push upward.
If the stock falls off a cliff, the play is dead.
>> Then we wait for the next Breaking News alert <<
Keep an eye out for more volatility during this shortened trading week.
Have a great day everyone.
I’ll see you back here tomorrow!
Tim Bohen
Lead Trainer, StocksToTrade