This one particular play got me super amped last Friday morning.
Friday is one of my favorite days of the week to trade.
That’s because short sellers usually want to exit positions before the weekend … And that can create some epic short squeezes in recent runners.
But before one of my top watches could even get going, it got obliterated by bad news.
Luckily, I had a plan and a killer tool to keep me and SteadyTrade Team members safe. But even with the bad news, this recent big gainer might not be dead yet.
Read on to find out how I stayed safe from a 40% drop and my plans this week for this recent runner…
Where can you find the best news that can move stocks? Watch this video now!
My Top Watch on Friday
Before Sunshine Biopharma, Inc. (NASDAQ: SBFM) tanked 40% yesterday, I broke down my trading plan in the morning SteadyTrade Team webinar…
It was around 9:07 a.m. Eastern and SBFM was trading sideways in premarket. I liked it…
But on a trash stock like SBFM, I’m always more conservative.
So I wasn’t watching it for a dip buy … or for a weak open red-to-green move…
It was Friday, so for this junk stock, there was only one potential play…
I wanted it to pull back and suck in shorts — then I wanted it to blow through $12 and squeeze those shorts.
But about five minutes after I laid out my plan, bad news hit…
Breaking Down a 40% Loser
At 9:12 a.m. Eastern, the Breaking News Chat team alerted SBFM’s SEC filing.
If you were swinging this or trying to dip buy a $2-per-share drop, that was your cue to exit…
After the market opened, SBFM tanked another $2 per share.
But if you don’t have Breaking News Chat, you might not have known what happened to SBFM. Yahoo Finance didn’t have any news about the offering…
Finviz didn’t report it…
Even one of my favorite reads, The Wall Street Journal, had nothing…
I snapped those screenshots roughly 45 minutes after the market opened. When I checked back around 12:30 p.m., there was still no news.
That’s why StocksToTrade’s Breaking News Chat is such a game-changer for traders. Especially if you trade junk penny stocks…
These crap companies can drop offerings any time their stock price is up.
That’s why I had a specific plan for SBFM, even before the Breaking News Chat alerted the offering.
You must know what you’re trading and take it for what it is…
Am I happy SBFM got destroyed? No. But it was just a watch for a Friday squeeze. I didn’t take a loss. My trading plan and the breaking news chat kept me safe.
So does the offering mean it’s over for SBFM this week? Not necessarily. It could still get ugly for short sellers…
Some shorts are probably still in this from early last week. They’ll probably try to buy to cover on dips. Meanwhile, other shorts will likely add to their positions.
It wouldn’t surprise me to see SBFM grind all the way back up this week.
This isn’t a dip buy. But as long as it holds up, I’ll watch it for more potential squeeze action through key levels.
And if it dies it dies…
There’s no shortage of other plays to watch, like BRC Inc. (NYSE: BRCC) and Phio Pharmaceuticals Corp. (NASDAQ: PHIO).
PHIO was up over 100% on Friday afternoon. It announced positive preclinical data and was a Breaking News Chat alert winner!
Get this tool working for you already…
And if you love using trading tech, stay tuned this week. I have a special announcement you won’t want to miss!
Have a great Money Monday. I’ll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade