What’s working in this market when stocks continue to tick lower?
Of course, day trading is the way to go.
But there’s one thing you can look for in a stock that can cause it to buck the market trend…
It’s only one of the boxes we want to check when making our trading plan.
But if a stock has it, it can greatly increase its potential to run.
And when you combine this checked box with other factors and indicators, it can create even more successful trades…
And that’s what we try to do daily in the SteadyTrade Team — look for stocks that check these boxes and use tools to guide our trades.
So today I’ll break down what we looked at yesterday, so you know what to look for in stocks in this market…
What’s Creating The Biggest Spikers in This Market
Three of the most in-play stocks yesterday had one thing in common…
My number one watch was SOBR Safe, Inc. (NASDAQ: SOBR).
I liked that it’s a multi-day runner that’s been hanging around. It has a low float. And the company knows how to play the game…
The stock spiked last Monday morning on a press release … So what did the company do yesterday? It dropped another 8 a.m. PR.
My game plan was to buy a break above Oracle’s $3.17 resistance area. With risk at the next support level of $2.91 and a goal in the high $3s.
It was a solid plan that played out right at the open.
SOBR chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
My other top watch was Immunic, Inc. (NASDAQ: IMUX). I only picked SOBR as my number over IMUX because SOBR had a lower float.
But IMUX had a lot to like too…
It had a kinda low-ish float. And it had news of a private placement financing at a premium to what the stock was trading at on Friday.
So, someone was willing to give the company $60 million dollars … And I assume that person did their due diligence. But hey, just because you have money, doesn’t mean you’re smart…
I said to watch this one for any of our patterns.
Applied DNA Sciences, Inc. (NASDAQ: APDN) was the next big runner.
We didn’t even talk about this one in Pre-Market Prep or the SteadyTrade Team yesterday morning…
But about 15 minutes after the open it spiked up over 80%.
The Breaking News Chat team was all over it though…
The team alerted the company’s news before it popped and halted.
So have you figured out what you need to be watching for in this market?
Why These Three Stocks Ran
News catalysts can create some of the best spikers — even in a bear market.
All three of the top percent gainers yesterday had news…
That’s not a coincidence.
So when you want to find the best potential stocks to trade while the rest of the market goes to crap — look for news catalysts.
I scour the Breaking News Chat every morning before I make my trade plans … And I think you should too.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade