Yesterday, social media names like Snap Inc. (NYSE: SNAP), Twitter, Inc. (NYSE: TWTR), Pinterest, Inc. (NYSE: PINS), and more, lost roughly $200 billion in market value…
And while some traders might look to buy the dip in some of these beaten-down names, I’ve been able to stick to the same penny stock plays and patterns I’ve traded for years.
Even in this wild and volatile market … penny stocks remain consistent.
And yesterday’s action was no different.
My number one morning watch offered both aggressive and conservative traders a chance to profit…
I outlined my ideas in the SteadyTrade Team morning webinar and alerted Daily Market Profits subscribers.
If you missed it, here’s how it played out and why it worked…
Why I Watch Multi-Day Runners
On Monday, my top watches were monkeypox plays like SIGA Technologies, Inc. (NASDAQ: SIGA) and GeoVax Labs, Inc. (NASDAQ: GOVX). But they didn’t do much that morning….
SIGA chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
GOVX even had a hard pull back and halted to the downside…
GOVX chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
But as the day went on, GOVX got more and more interesting…
Right around the 2 p.m. window, GOVX broke through the high of the day and squeezed up to $2.80 — a 50-cent-per-share move!
GOVX chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
Now that brings us to yesterday…
GOVX was still on my radar as a monkeypox play. Then in premarket, they played the game…
The company announced cancer news. (Remember: ‘Scary’ news moves stocks.) The Breaking News Chat team alerted it 30 minutes before the market opened.
GOVX was trading around $2 per share when the news dropped. And about 20 minutes later, it spiked huge.
When I saw it in the SteadyTrade Team morning webinar, I said it must be a chat pump…
Sure enough, the chat guy was long.
The stock went red-to-green and I immediately warned everyone who traded the premarket move not to get greedy.
Buy in pre, sell in pre.
But if you missed the premarket move, it wasn’t over. I mentioned that If GOVX became a chat survivor, it could be a 9:45 am dip and rip. Just like CBIO on Monday.
If you were feeling FOMO, remember you didn’t have to enter early. (At the market open, there are still seven hours left in the trading day…)
And if you had the patience to wait, GOVX didn’t disappoint yesterday…
GOVX chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
Why did my GOVX trade idea work so well?
It checked a lot of the boxes…
- Irrational short squeeze on Monday (a sign of trapped short sellers)…
- Premarket press release…
- High volume (find out why it matters here)…
- Red-to-green move…
If you learn the process and put together the ‘why’ before you make a trade, then you’ll be ready to catch the next big spiker.
If you’re in the SteadyTrade Team, I’ll help you build a case for each runner in my twice-daily webinars.
But if you’re not, you can still use StocksToTrade’s Breaking News Chat to get news and chat pump alerts. And get my ebook to learn my repeatable trading patterns.
Study up, use the right tools, and practice. That’s how you get 1% better every day.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade