Trading News
Sep. 27, 20224 min read

Three reasons to like ATXI

Tim BohenAvatar
Written by Tim Bohen

Yesterday we had a big winner in the morning SteadyTrade Team webinar…

But you didn’t have to be part of the team to get my game plan for Avenue Therapeutics, Inc. (NASDAQ: ATXI)

I sent an email to Daily Market Profit subscribers outlining my plan… 

It included a signal to get long at $5.50 with a risk level at $5. And my goal for the trade was $7+. 

But ATXI went way higher than that… 

It soared to over $11!

So what was this stock to soar while the overall market was in meltdown mode?

And why did I like it so much to make my number one trade idea BEFORE the market opened? 

What I Loved About ATXI 

What I loved most about ATXI was that it has a float of only 800,000 shares. 

I was losing my mind over it … It was my biggest dad joke of the webinar. I just kept repeating the float number over and over…

But I didn’t just find it because of its float… 

A SteadyTrade Team member brought it up when it was spiking in premarket after the Breaking News Chat team alerted that it was a chat pump.

Now remember, nine out of 10 chat pumps fail at the open … So I usually impose a strict post 9:45 a.m. rule on chat pumps. 

But I knew that if this micro float stock could survive at the open, we could have a big runner…

So I was willing to relax the post 9:45 a.m. rule

Why?

Because it has an 800,000 float! 

The Other Catalysts For ATXI

But float doesn’t matter unless you have enough volume to push it higher. That’s why I also liked that ATXI had float rotation. 

And it completed a reverse stock split last Friday… 

That was a hot theme in the market for a while. 

But you can see from this chart why I don’t encourage anyone to blindly buy a stock because of a split…

It basically tanked after the split, then went sideways on Monday…

ATXI chart: 3-day, 1-minute candle — courtesy of StocksToTrade.com

That’s why it’s better to wait for a day like yesterday when there’s a ‘why’ — a reason to buy the stock. Not just because of a reverse split.  

And the chat guy isn’t an idiot … He knows what he’s doing. 

He picked a micro float stock that’s basically loaded with short sellers to pump… 

So when volume comes in, shorts are forced to get out. And it creates a massive move in the process. 

Just look at the volume ATXI traded yesterday compared to the prior two days. 

It had massive float rotation. And when I see that in the morning, that means it’s in play all day, baby! 

I hope you were able to catch some of this incredible move. (You could’ve used this pattern to capitalize on it.)

Because while the overall markets have been ugly, we’re still finding big runners daily in the SteadyTrade Team

And if you don’t have the time to attend my twice-daily webinars, you can still get my number one and game plan every day…

Just like ATXI, I’ll deliver it right to your inbox every morning. You can also attend my live webinar daily at noon Eastern for my number one afternoon watch… 

Subscribe here for my next alert

Have a great day everyone. See you all back here tomorrow. 

 

Tim Bohen

Lead Trainer, StocksToTrade