Trading ended on a high note last week…
The job numbers came out and the markets reacted positively.
So what’s in store for stocks and trade opportunities this week?
Nobody knows for sure.
We’ll react and follow our process for any opportunities we see…
But I have a thesis I hope plays out this week.
And if it does, it could mean more trade opportunities and bigger runners — get ready for it!
What I’m Looking For This Week
About two weeks ago there were plenty of penny stock runners…
It kicked off with TransCode Therapeutics, Inc. (NASDAQ: RNAZ) having a massive move on September 25.
RNAZ chart: 3-month, daily candle — courtesy of StocksToTrade.com
Then Soleno Therapeutics, Inc. (NASDAQ: SLNO) had a whopping 538% move the next day.
And it offered more trading opportunities a few days later…
SLNO chart: 3-month, daily candle — courtesy of StocksToTrade.com
Femasys Inc. (NASDAQ: FEMY) made its move on the same day SLNO skyrocketed…
It gained as much as 400% on its first green day. Then it turned into the single hottest stock to trade for the rest of the week…
FEMY chart: 3-month, daily candle — courtesy of StocksToTrade.com
But last week, the market mood changed…
It was quiet. There wasn’t anything truly great.
I still showed up for my webinars every day. We went over our process and had a few ‘buy in pre, sell in pre’ trade opportunities…
And there were trades if you adapted and were quick to get in and out.
But what was missing in the moves was follow through…
Very few morning spikers held their gains throughout the day. And there were no multi-day runners.
That’s because the one thing the market hates is uncertainty … And there was a lot of that leading up to Friday.
Traders were taking less risk.
Everyone was anticipating and waiting for the job numbers report.
That’s because it was the report that the Fed was eyeing to see where they should go with interest rates in the future.
When the numbers came out the markets took a nose dive in premarket. But from there they went on a wild upside ride.
I don’t know if it was shorts getting squeezed or traders thinking the news was priced into the market…
Or if it was because now that the numbers are out, there isn’t uncertainty anymore.
I hope it’s the latter…
Because now that there isn’t uncertainty, traders might take on more risk.
So what I’m looking for this week is to see if my thesis is correct…
I’ll look for more volume in small caps and see some big movers come back into the market.
I’ll also watch to see if stocks can have more follow-through and if we start to see multi-day runners again.
This is how you continuously adapt to the market environment.
If you want to follow along and navigate the market in real-time every day — join our free live training sessions throughout the day.
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Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade