Trading News
May. 19, 20224 min read

Why I’m watching these three beaten-down tech stocks

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Written by Tim Bohen

There are roughly 16,000 tradeable stocks in the market. Our job as traders is to narrow it down and find 1-3 stocks to trade.

Now, that might sound intimidating, and it would be for me too if I didn’t have Oracle … my proprietary algorithm for hunting down stocks.  

But even with that … some days are harder than others… 

Lately, mornings have been tough. There haven’t been many great setups out there. 

Of course, there will always be one of our setups. But yesterday morning, nothing in penny stock land had me saying, “Oooohhh baby!” 

Most of the gappers were mediocre at best. 

So what do we do on market days like that?

Like I said yesterday, we have to think outside the box

Look for opportunities where they are — not where you want them to be. 

And right now, I see an up-and-coming ‘hot sector’ worth watching … Some SteadyTrade Team members and weekly watchlist readers have already been banking off these plays… 

I talk about these kinds of plays every morning here! 

What to Watch When Penny Stocks Suck

Yesterday morning I was watching penny stocks like Indaptus Therapeutics, Inc. (NASDAQ: INDP) and Inovio Pharmaceuticals, Inc. (NASDAQ: INO).

But as you can see, they did nothing all day…

INDP chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

INO chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

It was the second day in a row that I wasn’t particularly excited about any of the morning gappers…

But that doesn’t mean there are no trades — there’s always a trade…

And three ‘real’ stocks are starting to see a bounce… 

Beaten-down tech stocks like Affirm Holdings, Inc. (NASDAQ: AFRM), Upstart Holdings, Inc. (NASDAQ: UPST), and SoFi Technologies, Inc. (NASDAQ: SOFI) are getting high volume and volatile moves. 

Yesterday in my SteadyTrade Team morning webinar, I said to watch them all for weak open red-to-green moves.

And just look at yesterday’s morning moves…

AFRM chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

UPST chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

SOFI chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

These stocks are so volatile (and have so much range) that you don’t even need to risk swing trading in this market. 

They’ve been offering setups almost every day with this one simple pattern.

And they’ve had multiple dollar-per-share moves. 

Yes, AFRM and UPST are a little higher-priced. But if you have a small account, you can still trade them using the rule of 10. 

Learn more about the rule of 10 at the 4-minute mark of this video.  

If morning penny stock plays continue to suck, and Veru Inc. (NASDAQ: VERU) doesn’t have a Friday squeeze over $15 — those are the stocks I’ll watch today and into next week. 

Have a great day everyone. See you back here on Money Monday.

Tim Bohen

Lead Trainer, StocksToTrade