The stock market is closed today, but if you’re part of the “No Days Off” Club like me, you know there’s work to do.
Market holidays are typically good days to review and prepare for the short trading week.
And that’s what I want to do with you today.
Plus, I want to share with you my top idea heading into Tuesday.
Eye of the Oracle
I picked out three stocks with the juiciest setups on Friday and shared them with the Pre-Market Prep Crew.
The first play was in SciSparc (NASDAQ: SPRC).
Here’s what I liked about it:
- Former Runner
- Low Float
- Well-timed press release involving a hot sector
- The news was on Friday, typically a good day to squeeze shorts
- Strong pre-market volume
As you can see, for me, it checked a lot of the boxes. And I had no problems making it my top idea of the day.
The stock had a strong gap up in the pre-market, but once the opening bell rang, it was downhill from there.
I couldn’t have called it any worse.
But despite not doing what I thought it would do, it was a no-trade for me.
You see, I use Oracle to guide my entries and exits. The all-seeing Oracle triggered SPRC a buy only if it traded above $1.34 per share.
In other words, if it didn’t tick above $1.34 and you followed Oracle, you would have saved yourself from taking the trade.
My second idea coming out of Pre-Market Prep was in ShfitPixy, Inc. (NASDAQ: PIXY).
Here’s why I liked that one:
- Friday morning chat pump with a press release
- Former runner
- Nice spike in the pre-market
Not as many boxes checked, but still a solid stock to put on the watchlist.
But like SPRC, the stock spent the entire day drifting lower.
Another play that didn’t materialize.
Oracle had its buy signal at $9.45. But as you can see from the chart above, PIXY never got there, so this was another no-trade.
The third idea I shared with the Pre-Market Prep Crew was in IBIO, Inc. (AMEX: IBIO)
It had a press release mentioning it had an effective tool in the fight against cancer. The stock had massive volume in the pre-market, trading substantially higher from the previous day’s closing price.
Oracle signaled it as a buy once it traded above $1.64. This one did trigger, but it was later in the afternoon when the stock hit a high of $1.99.
Not a bad trade if you caught it, but your timing would have had to be excellent.
So what’s my takeaway from all this?
My daily watchlist doesn’t have to be yours.
But more importantly, just because a stock lands on my watchlist — it doesn’t mean I’ll trade it.
In fact, using Oracle would have saved you from getting into two failed setups in SPRC and PIXY.
Putting stocks on a watchlist without a trading plan attached to them is worthless. That’s why the Oracle levels are so invaluable. They take the emotions out of your decision-making.
Looking at the big picture, we’re not seeing a lot of follow-throughs right now. This tells me if you’re in a trade that’s working, look to take quick profits or set your stops higher to protect your gains.
Moving on to Tuesday’s action…here’s the top stock on my watchlist:
AMBRX BioPharma (NYSE: AMAM)
- It’s a low float
- Former runner
- It had a red-to-green move on Friday (bullish)
I would like it to show some strength on Tuesday and may consider it a buy if it can crack above the $3.50 level. But I’ll wait to see what levels the all-seeing-Oracle gives me.
Tim Bohen
Lead Trainer, StocksToTrade