I might be in one of the most dream locations in the world right now (Tuscany)…
But that doesn’t mean I’m taking a break from this incredible small-cap market.
#NODAYSOFF!
Do you like my trading office today??? I’m trading from a truly dream location and taking solid singles in plays.
I took 25% on Catheter Precision Inc. (VTAK) pre-market the other morning and 40% on Focus Universal Inc. (FCUV) the day before.
Same setup both times: Low-float stocks, garbage companies, heavy volume, breaking through former resistance while shorts panic.
This market is handing out these plays back to back right now, more than I can even trade.
I missed a couple of others while I was busy with the ones I caught. That’s fine. There’s always another one.
But if you sit around waiting for a clean, perfect breakout, you’ll miss every single one of these.
All you need to do is this:
• Know the key price levels (support and resistance).
• Watch the volume.
• And most importantly … be on the front side of the move when it explodes.
That’s the same trading formula I’ve used to make $8 million.
Here’s how it works…
25% on Catheter Precision Inc. (VTAK)
Why did VTAK spike?
That’s the number one question I’m getting.
It’s a recent runner. It went from about $0.88 to around $1.60, a nice double, on news that they were sponsoring a PGA Tour player.
The news is laughable. Short sellers are saying, “This doesn’t deserve to go up. This is a piece of crap company.”
I agree.
But that doesn’t mean it won’t go up.
You have to stop being so narrow-minded, the way too many shorts are, and take advantage when there’s a play, when there’s a pattern.
I missed the first spike.
But when there’s a big spike, recognize where former resistance is, because former resistance often becomes a launching pad once it breaks.
VTAK triple-topped around $1.58, $1.61, and $1.65, call it $1.60. Then it tried to bounce to $1.56 and failed.
The night before, it only got up to $1.40, nowhere near resistance. Yesterday it was a rocket ship.
When I saw it break above that $1.40 level, it went on my watchlist.
It’s a former runner after all, it could keep going. The volume was so big that even after it hit $1.60 and failed, I thought it had more in it.
There was one little red candle on the chart. That’s where I entered.
Source: Stocks To Trade
Someone said, “Tim, it failed at resistance.” Yes. But this is why I love 4, 5, 6, 7 a.m. runners.
Shorts are on their back feet because nobody knows how high it’s going.
It ended up near $2. But the shorts don’t know if it’s going to $3, $4, $5, or $6, so they can’t short aggressively even when a stock fails at resistance.
That’s how these early spikers go parabolic.
The goal on a recent runner like that is 10%, 20%, maybe 30%.
I just saw the biggest percent winner in the market, and the biggest percent winner tends to keep going.
40% on Focus Universal Inc. (FCUV)
I did the same thing with FCUV.
I missed the early run-up (crazy schedule out here in Europe), but this was a clean breakout play.
Reverse split, very low float.
It consolidated all morning in the low $4s, then the volume spiked big.
It teased $5, failed at $5 a couple of times, and I entered in the $4.90s when it finally pushed through, around 11 a.m. Eastern.
I didn’t KNOW it would break out. But it had such a solid base that if I’m wrong, I’m wrong for three or four minutes.
Every time it failed before, it failed for about four minutes. So I risk losing $0.05, $0.10, maybe $0.20 a share for a few minutes.
And when it actually broke, that was the biggest volume candle of the day.
I bought the middle of that candle. That’s when shorts are getting squeezed, when breakout buyers like me are stepping in.
I’ll be honest, I got a little lucky that it halted.
When these low-float names halt, shorts panic (thinking it could go to the $6s, $7s, $13s, $20s). I gave it four minutes around the $5.20s, held, and sold well into the spike for about 40%.
Source: Stocks To Trade
Exits and entries are everything. Lock them in for SINGLES, over and over again…
Close Misses on EHGO and RDGT
Eshallgo Inc. (EHGO) started spiking right in front of me while I was filming a video. I missed the start of it.
I’d actually been in EHGO two days ago, but it did nothing, so I got out. Then it ran without me. It happens.
You’ve got to be there when these volume spikes come, but you won’t always be.
Ridgetech Inc. (RDGT) was the same story two days ago. It ran from the $1.40s to $4.50 (and I missed it).
I saw it, but I underestimated it. I was even highlighting it on Twitter in the $3s and $4s. But I didn’t want to chase.
I said, “Don’t chase it in the $3.30s.”
I thought that was the top. It’s back to $1.50 now. If you’d shorted, you’d have been right that time (but that’s a dangerous game).
You don’t know where the top is.
That’s how a short squeeze works.
It consolidates and consolidates until anybody with a brain thinks it’s over, then it squeezes to new highs, and the biggest volume candle of the day turns out to be the top.
Be careful when these get overextended. Lock in your gains quickly.
As you can see, the play is the same every time.
I don’t want to be on the backside of these. I want to be on the front side when it’s making new highs and the volume is exploding.
Missed one? Don’t sweat it. There’s always another one coming.
You’ve just gotta follow the formula…
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
