Yesterday’s 200%+ gainer ran on news that I haven’t seen move stocks in over a year…
But now that macro headlines have changed and we’ve had this massive spiker — will COVID penny stocks be great again?
Or is VERU just another crappy one-and-done biotech?
Read on to find out what I think could be next for VERU and the entire biotech sector.
Before you trade any biotech stock — click here to learn the biggest mistake you MUST avoid!
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What Sparked a 200% Gain?
Even taking a small piece of this Breaking News Chat winner is a great gain for a small account. We haven’t seen these kinds of gains in a while…
But VERU wasn’t my top watch yesterday…
It has a large float, the volume was just OK, and I didn’t love the news.
As traders, we look for patterns. And based on recent history, COVID news hasn’t moved stocks in about a year. So I wasn’t overly excited about it.
But you have to respect how VERU played the game…
Management pumped out a COVID PR as worldwide headlines shifted from the Russia-Ukraine crisis to the lockdowns in China.
It’s scary news — and scary moves stocks.
But most of the lockdown headlines seem to focus more on the impacts to supply chains and manufacturing.
So was a 200% gain on COVID news warranted? The thing is, it’s not just about the news…
As day traders we want to take advantage of several factors:
And big runners like VERU are how hot sectors get started. That’s why I know my top watch for the rest of this week…
Seeing a 200% gainer on COVID news means all the degenerate traders will be looking for the next VERU.
It could be another COVID penny stock or another stock in the biotech sector.
As an example, look at Altamira Therapeutics Ltd. (NASDAQ: CYTO) yesterday morning…
It also announced COVID-related news. It had just made new daily lows when VERU broke through the $8 high of the day…
That’s when CYTO reversed. It followed VERU in sympathy and spiked over $1 per share — a 60%+ gain!
But COVID isn’t the only news moving biotechs recently…
Yesterday, Hoth Therapeutics, Inc. (NASDAQ: HOTH) gained over 100% in premarket after announcing its mRNA therapeutic reduced cancer cell growth. It was a top watch for a morning dip and rip. That plan kept me and SteadyTrade Team members safe.
But mRNA technology is a buzzword lately. And HOTH is still a big percent gainer with news and high volume. So it’s on watch if it hangs around.
Phio Pharmaceuticals Corp. (NASDAQ: PHIO) is another hot biotech. If you follow my weekly watchlist, you know why I like it.
PHIO was my top watch yesterday. I didn’t get the move I wanted, but the stock held up and traded sideways all day. It’s a great candidate for a potential day-three surge today.
Those are just some of the moves I’ll watch for. But remember the number-one rule about trading biotechs…
How to Trade Biotechs
You hear me say this a lot — biotech stocks are day trades only.
Because they’re super sketchy. So many biotechs only trade publicly because selling stock is how they raise capital.
And you must always be wary of potential offerings.
If you want the safest game plans every trading day — join the SteadyTrade Team.
I break down all the biggest daily percent gainers in my twice-daily webinars.
Hope to see you in the chat room!
Have a great day. See you back here tomorrow.
Lead Trainer, StocksToTrade