Happy Saturday. It’s Bryce here.
I’ve got a confession to make …This market’s got me turning to the dark side. I did something I don’t usually do, and I enjoyed it.
Why? Because it built my confidence back up. It’s no secret that I’m a long-biased trader. Breakouts suit my personality the best.
And there are still long opportunities out there. I’ve actually got a couple on today’s watchlist. But in the spirit of meeting the market where the market is, I also went short on a troubled sector.
This sector was so hot in the summer of 2018. But now, its tickers have come way down from their highs.
So, let’s get into my favorite new ticker to short and the two tickers staying long and strong…
Neurometrix, Inc. (NASDAQ: NURO)
Neurometrix is a biotech company that develops and commercializes non-invasive medical devices to treat pain and neurological disorders.
On Thursday, the company announced that it received a nod from the U.S. Food and Drug Administration (FDA) for its Quell neuromodulation device. It’s designed to reduce the symptoms of fibromyalgia.
Traders love when biotechs get an FDA nod. It closed up over 76% on Thursday.
On Friday, it pulled back 21.64%, closing at $4.31. That keeps it in a sideways consolidation pattern from its Thursday opening price of $4.65.
It’s not a traditional day three surge since it pulled back some on Friday. But if the Nasdaq turns super green on Monday and more positive news comes out for NURO (like presenting at a conference), it could test resistance at $5.50 again, and maybe even break to $6 or $6.50.
Bright Green Ord Shs (NASDAQ: BGXX)
This is the ticker that pulled me over to the dark side. I mentioned my plan to short this baby on a recent episode of Small Cap Recap.
Bright Green is one of just a few U.S. federally-authorized cannabis manufacturers with a recent IPO. Given how terribly weed stocks have done lately, I predicted that insiders and institutions would dump their shares right out of the gates.
And sure enough, BGXX didn’t disappoint…
It fell 67.35% on Thursday, closing down at $15.70 after an intraday high of $39.65.
On Friday, BGXX closed down another 28.34% at $11.25 –– a fresh new low.
On Monday, I’m gonna watch to see if it makes a lower low or finds a bottom and bounces back up. This is a newer stock, so it’s just starting to form a pattern. Often, when a stock finds its floor price, it’ll test it for a second time before bouncing up again.
Once you know the range a stock likes to trade in, you can play it to the upside or the downside.
Immix Biopharma, Inc. (NASDAQ: IMMX)
Immix is a biotech company focused on Tissue-Specific Therapeutics that treat various cancers. On Friday, the company announced positive results from a preclinical trial of their soft tissue sarcoma treatment.
The stock jumped 34.36% on Friday, closing at $2.12 despite the Nasdaq’s poor performance.
IMMX is also a former runner, which can bring more traders back to the bids. When you have evidence that a stock has performed well in the past, you’ll have more confidence that it can do it again.
If IMMX continues its run on Monday, it would need to break $2.70 to get my attention. Remember that it hit resistance at $2.68 and $2.69 on Friday. If it gets past that hurdle, the next level of major resistance is the high $3 range.
Trading in a bear market doesn’t mean you should stop paying attention to trends. In fact, it might be more important than ever. There’s often a theme or a pattern behind the most successful trades.
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