May 20, 2019
Hello there! Below is your edition of this week’s newsletter. We hope you have a great trading week!
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State of the Markets
It was an UNBELIEVABLE work for bringing in over $7,000 in profit. I traded the same stocks both long and short, in a sniper-esque ways which is a sign of peak trading. Really, really happy about how i was able to read the market momentum and volatility. I have been almost entirely momentum trading. Which is different from catalyst trading. What I mean by this, is all I care about is range and momentum, i don’t care about the catalyst. A stock could have realeased a bullish catalyst but due to momentum and volatility I could be banking on it to the short side. Stay closely attentive to alerts this week because we are having some incredible success.
WRITTEN BY: CQB/KAF – Stock Moderator
Beyond Foods ($BYND) is making a splash as 2019’s hottest IPO. The stock IPO’d at $25 and saw as high as $96 last week. I habve recently sized into a hefty short position and this week is finally the week it pays off. I am in short over 700 shares with an average in the mid 80’s. My price target on this ultimately is as low as sub $40, but i will take some profits off the top under $60. This is the week we should see the unraveling begin. The stock recently fell under an extremely critical level of support of $88. It also just so happens that Citron, the notorious shorting company, released a massive short report on BYND on Friday as well with a price target of $65. This name is heavily, heavily over valued. Valued even more than the industry its self. It’s what I would call an A+++ setup to the short side. In the short term it may do some more squeezing and even touch the $100 level. But all i care is where this will be 6-months from now, and that’s sub $40.
Bridgeline Digital, Inc. ($BLIN) is an Application Software company in the Technology sector. This micro-float penny stock began to reverse out of its two-week downtrend on Friday, as you see from the breakout that resulted in a high of $6.00 at market open. It attempted to break back over its $5.80 critical resistance level a couple of times later in last Friday’s session, but failed to do so and made new lows into close. It got a walk-up after-hours Friday evening though, coming back to re-test that $5.80 resistance again. I plan to day trade this over the $5.81 critical resistance level. This is a very low-float, volatile stock, so adjust your position sizing accordingly!
Outlook Therapeutics, Inc. ($OTLK) is a Biotechnology company in the Healthcare sector. This low-float penny stock has been in a bit of a parabolic uptrend since its earnings release last Wednesday beat expectations. Since the earnings release last week, the stock has went from lows of $0.85 to a high of $2.72 on Friday. It has since sold off, but held the $2.00 natural support level perfectly for the bounce towards its $2.30 natural resistance. I plan to day trade this over that $2.30 natural resistance level for the technical breakout pattern!