August 12, 2019
State of the Markets
The wreckage was significant this week mainly stemming from Mondays insane washout. Markets did show some promise and ability to bounce upwards though recovering a good portion of the early losses on the week to where markets in essence finished basically flat on the week overall. The intense volatility provided a ton of opportunity for us however as we were able to capitalize on violent moves both upwards and downwards. The markets are incredibly volatile and are hanging on to every word about trade, rate cuts, and now the Chinese Yuan value. Every evening at about 9:15 est the PBOC will come out and “fix” the Yuan to a value against the US dollar. This is significant because this week the PBOC has slowly but surely devalued their currency. This helps with Chinese exports and to offset the additional tariffs from the U.S. recently. It’s a massive whirlpool out there where the only thing that has been consistent is instability.
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Last Week Profits
Stocks To Watch This Week
Uber ($UBER) technologies released earnings Thursday afternoon and reported a terrible miss on EPS, and announced they had lost over $5 billion last quarter. This name traded insanely tight on Friday and wedged really well all the way into close and even into after hours. $39.50 is the majore support level that will signal and confirm further pain to the downside when it gives up. I expect this to trade as low as $36.50 this week based on continuation from last weeks earnings.
Overstock released earnings on Thursday afternoon and the stock originally got absolutely crushed to the downside, however the short float on this name is almost 70% which lead to an immediate short squeeze right at the opening bell Friday morning. The move from Thursday after-hours lows to ridays intraday high was almost +50%! This name has been running massively alongside Bitcoin especially this past week as there has been a mass move from capital within China to Bitcoin which people are terming as a “safe haven”. Sound backward and funky? Its because it is. This name is starting to get ready for us to work into a large short position, and potentially a starter short as early as this week. The key things we have to watch for are 1- the short float 2- the borrow fee, and 3- Bitocoin action. Based on those three indicators we should be able to safely start sizing in short here.
Arcadia Biosciences, Inc. ($RKDA) is an Agricultural Chemicals company in the Basic Materials sector. This low float penny stock had a fantastic day last Friday, after releasing news that their leading product got USDA approval for Drought Tolerant Soybeans. While this is a positive news catalyst, with a micro-float of just 2.79 million, any type of news would send this stock running. I plan to day trade this over the $5.05 critical resistance level for the technical breakout!
Yangtze River Port and Logistics Limited is a REIT company in the Financial sector. This low float penny stock soared on Friday, closing up +35% before running up even more during after-hours trading. The stock is moving purely on momentum at this point, so be careful when trading this! Definitely not a stock I plan on swinging, as this company is soon to be delisted after the SEC found some serious concerns with management. I plan to day trade this over the $0.85 natural resistance level for the technical breakout!
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