Yesterday (May 27) during Premarket Prep, one stock was spiking hard. I’ll share the stock in a moment, so keep reading.
I commented that it went vertical right into major resistance. I also said it was probably a chat pump. A few people in the room made comments like I was being sarcastic, or joking. I’m not joking. When I smell a chat pump, I call a chat pump.
I still called it my top pick because it was the perfect recipe for a squeeze. That said, the last thing I would EVER do is chase…
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Table of Contents
The Big Picture
When Astrotech Corporation (NASDAQ: ASTC) announced that its Board of Directors “approved a strategic initiative focused on lunar resource development” it immediately started to run.
Now, there are a few things about ASTC you should know:
- It’s a classic, low-float ticker with a history of pivots to new industries.
- ASTC is a former runner in the space sector.
- As of yesterday, ASTC is also a quantum computing stock.
Now, if you’ve been following along, you’ll know that space stocks are hot because of the upcoming SpaceX IPO. And yesterday I wrote about why quantum computing stocks started popping last week.
So, ASTC is a classic example of a company putting their name where all the money in the markets is flowing.
That brings temptation to a lot of traders. It’s also why…
If I Miss a Big Move, So Be It
Again, ASTC was my top Oracle signal idea at the open yesterday. I’ll show you the chart in a moment because it turned into a perfect RCT setup.
But chasing when it spiked in premarket based on a sketchy press release and all the chat pumps that followed?
Never.
I joined “chasers anonymous” long ago.
You can chase if you want, but I won’t. With so many of these fast spikers, everyone remembers the one time it worked. They forget the 99 times it doesn’t
So, I might miss a big mover. But I’m not going to get bagged down a chat pump at 8:37 a.m.
No thanks.
You are free to do whatever you want. But I’m not playing something that works one out of 99 times.
My Take
Again, I think sometimes people think I’m joking when I call something a chat pump. I’m not joking. If you want to chase a stock like ASTC, you could make a case:
- Space news
- Quantum news
- Low-float
- Former runner…
I’m not saying it’s bad. But I learned my lesson on chasing long ago.
I believe it’s my responsibility to lead by example. Between joining chasers anonymous 15 years ago and trying to lead by example…
It’s my opinion that there’s a better way, including with ASTC yesterday.
What is it? Simple: Make a plan.
Watchlist
ASTC turned into a classic RCT setup yesterday. Here’s the chart:
Source StocksToTrade, ASTC 5/27/26, premarket low float runner, RCT setup, short squeeze
The pink lines on the chart represent the RCT, which was in at $6.41 x $6.04. You can see that the stock never hit the risk ($6.04) as of when the chart was created around 3:00 p.m. ET.
Now, the plan would have been to take profits when it hit the major resistance (MR). That said, the stock just kept going so the MR flipped. Experienced traders could have scaled out of this one for a very nice win.
I hope you see how a trade plan, which includes an entry, risk, and target, is much better than chasing. You can trade RCTs every single day without running the risk of blowing up. And when you get a killer one that never even sniffs the stop…
Yeah, buddy. That’s how you grow an account.
On My Radar
- I’ve recommended this book before, but I’ll mention it again because you should have a basic working knowledge of technical analysis.
- Hobbit holes for the apocalypse? I’m good, thanks
- Competition in the AI coding space is heating up.