How’s it going, traders? It’s Bryce here.
I hope your Saturday’s going well. We didn’t close the week off with the kind of green action we love, but it’s not too surprising. Stocks ran up for weeks after a much longer slump, and now they to calm down a little.
So let’s take a moment to address the nuts and bolts. Traders often ask me what my favorite commission-free brokers are, so I took the time to answer that here.
It’s too early to tell if we’re in a bear market rally or a true bounce. Obviously, traders are hoping for the latter. But the good news is that small caps will find a trend of their own regardless.
Here’s what I’m looking at this week…
Social Capital Suvretta Holdings Corp I (NASDAQ: DNAA)
DNAA so a pretty big jump on Friday following the completion of its SPAC merger with Akili.
A key player in the deal is Chamath Palihapitiya, Founder and Managing Partner of Social Capital.
He’s a pretty well-known investor at this point and previous SPAC mergers he’s been involved in have seen decent runs.
The stock closed at $14.07, up 47.02% on the day Friday. It retraced around 50% from its high of the day during after-hours, as many breakouts do when consolidating sideways. Look for breaks of premarket highs and opening prices on Monday.
Axsome Therapeutics Inc. (NASDAQ: AXSM)
Not quite a small-cap but it was a decent and gradual runner on Friday. It didn’t pop and drop. It made a slow and steady ascent.
Let’s see which of those two facts traders focus on the most on Monday.
AXSM closed at $59.55 on Friday, up 40.35%. It’s coming out of a base around the $60 level. Watch for a break of Friday’s intraday high of $61.11.
Volcon Inc. (NASDAQ: VLCN)
VLCN ran on Friday after news broke that its pre-orders sold out its entire 2023 forecast.
Shorts managed to shave some gains off during after-hours though. That being said, longs in chat rooms were not giving up on it.
These days, all it takes is a good enough mob to get things back up again. So watch out for that Monday morning. This could be exactly what we need for a good squeeze.
The stock closed at $2.42, up 31.52% on the day. To play it safe, I’d definitely wait for a breakout of Friday’s intraday high of $3.34 to see if longs will win this one.
What I love about trading is that I’ve gotten to a point where I trust the process enough not to sweat the small stuff.
Market trends come and go. What matters is how you play them. Do you have a plan that stands up to all market conditions?
If not, we’d love to help you build one. Join Matt and me in the Small Cap Rockets Chat Room for just $9 a week for a couple of weeks and see how you like it — looking forward to sharing the best trades with you there!