Howdy, traders. It’s Bryce here.
How’s your Saturday going? Personally, I’m pretty amped today! And it’s not because of caffeine … I just love it when the market shows up with opportunities for retail traders.
Personally, I keep my winnings in cash when I’m not actively in a trade. But if you’re a beginning trader and you have both a retirement account and a trading account, being able to trade small caps right now is a great hedge.
Most people’s retirement accounts are getting crushed. But with a trading account, as long as you’re staying disciplined and fully in cash at the end of the trading day, things should be okay for you.
It’s been a HOT week for small caps — here’s looking at you multi-day runners! And given the volume we’ve seen lately, it seems likely to continue.
Here are the tickers I’ll be eyeing next week for further BIG MOVES…
Mereo BioPharma Group plc – ADR (NASDAQ: MREO)
I’m gonna be honest guys, this one’s kind of a gossip play. What do I mean by that? A rumor got out that AstraZeneca plc (NASDAQ: AZN) might want to take over Mereo BioPharma.
And before you knew it, people on the internet started speculating about what other biotech companies might also want to acquire it.
The timing was a little too convenient since MREO had just received word from the Nasdaq that it had failed to hold a $1 minimum stock price over the last 30 days, putting it at risk for delisting.
MREO closed up 62.50% on Friday at 1.30. If the folks behind MREO want the ticker to stay afloat for a while, they might just issue more PR in the days to come. Keep your eyes peeled for fresh breaks over the previous day’s close.
Acorda Therapeutics Inc. (NASDAQ: ACOR)
Acorda Therapeutics is a biotech company that focuses on treating neurological function in people with Parkinson’s disease, multiple sclerosis, and other neurological disorders.
ACOR ran up around 40% on Thursday after announcing the launch of one of their treatments in the German market.
I was hoping for a day two push on Friday but the stock stayed close to flat. It closed up 2.67% at $0.64. It did touch an intraday high of $0.70, one penny below its closing high of $0.71 on Thursday.
On Tuesday, keep your eyes peeled for a break and hold of that critical $0.70 key level. If it holds that level, any further news could send it further up.
Electric Last Mile Solutions Inc. (NASDAQ: ELMS)
This is one of those ticker stories that make you chuckle as a trader. ELMS is an electric vehicle company that debuted as a SPAC only about a year ago.
Now, after recently filing for chapter 7 bankruptcy, it’s become a multi-day runner. During its short time as a public company, it also saw the resignation of both its Chairman and CEO.
Still, the stock ran up on Thursday and saw a second day push up higher on Friday. While it hit an intraday high of $0.50 on Friday, $0.45 is actually a key point of resistance it’s touched several times.
Look for a break of $0.45-$0.50 range on Tuesday. If it can hold it, $0.60, $0.70, $0.80 and above are possible. This could be great to scalp with a lot of shares — perfect for small accounts.
Conclusion
Small caps are proving that they have staying power. Will they keep breaking out this summer?
In my opinion, yes … but even if they don’t, it’ll present another great opportunity for serious traders to discover new tricks.
If you want to become a consistently profitable trader, your job is to respond to the markets. When small caps heat up, trade the best strategies. When they slow down, find the best teachers that can help you keep your trading game in tip top shape. That’s what we strive to achieve every week in Small Cap Rockets — I’ll save you a seat!