‘To the Moon’ Watchlist: August 27, 2022

by | Aug 27, 2022 | Watchlists

Howdy, traders. It’s Bryce here. 

I hope you’re enjoying your Saturday. If you’re not, you should be. Yeah, the markets tanked a bit yesterday, and who knows what next week will bring. 

Here’s the thing: when you’re a trader, none of that matters. 

Your one job is to observe the markets and wait for your best setups to come to you. That’s why, red or green, I’m livin’ the dream. 

Today, I’m gonna share a couple of ways to trade both sides of a move. That means, whether a stock’s been red for a while and is ready to turn green, or it’s been green for a while and starting to reverse, there’s a move you can make. 

Let’s get down to business, and check out my big runners for Monday…

Red or Green, Opportunities Can Be Seen

A lot of traders think the best moves come on the very first green day of a stock, after a news release, or on the first red day…

This can be true but there are some key things you should look out for. Here’s how I like to trade the first green day pattern and the first red day pattern

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When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…

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That’s why he just recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.

In a see-saw market like the one we’re in, knowing both can be very helpful.

First Green Day: To make sure the reversal is strong, I prefer that it happen after a fairly large run. For example, I want to see a ticker put in at least two to three red days before turning green. Sometimes it can even put in four. 

Then that first green day, on high volume, is my time to jump in, risking my stop price at the point where it turns red again. This pattern can sometimes show up in large-cap stocks as well!

First Red Day: When a stock’s been running in the green for multiple days, perhaps rising 200-400%, and then it has its first red day on high volume, this is what I do…

I open a short position and use the previous highest price from its recent run as my stop-out price. That makes my risk crystal clear and makes me less nervous if it breaks the intraday high but quickly fails. 

Minerva Neurosciences Inc. (NASDAQ: NERV)

NERV has some nerve … dad jokes, anyone? Despite the Nasdaq’s near-4% plunge on Friday, NERV still put in a 58.19% gain, closing at $10.33.

It’s up 213.98% in the last five trading days. The company submitted a new drug application to the FDA for approval of a drug that treats symptoms of schizophrenia. 

And billionaire investor Steve Cohen’s Point72 purchased 470,000 shares before they applied. 

NERV jumped to almost $11.50 in after-hours before retreating a bit. The intraday high was $10.90. On Monday, watch for a break of $11 for a possible entry. If it holds up, it could see mid-$13s, mid-$14s, or even $15+.

Kiora Pharmaceuticals Inc. (NASDAQ: KPRX)

This one’s a true penny stock, kids, but it’s got potential for a day three surge. On Thursday, it closed up 100.91% on the day. 

On Friday, it pulled back, but not a ton considering Thursday’s jump. It closed at $0.22, down 15.23% on the day. 

It’s pretty much consolidating sideways and it needs to break the $0.29 mark, or better yet, make that $0.30 for a new high. 

If it manages to break $0.30, $0.40 could be in the cards. Keep in mind that this is purely a social media squeeze. So far, there’s no news on the company. 

OLB Group Inc. (NASDAQ: OLB)

OLB also had the nerve to defy the Nasdaq it calls home on Friday. It closed up 43.22% on the day at $1.69.

It hit an intraday high of $2.03, which is a key level it’s had resistance at since the beginning of 2022, and traded sideways for much of the day. 

If it manages to break $2 and hold that break, $2.50, $2.75, and above could be possible. 

OLB reported a share buyback program in mid-July and record revenue growth in mid-August, but nothing more recent than that.

Conclusion

Opportunities will pop up no matter where the market goes. They just change form. That’s why you need multiple strategies in your toolbelt to stay consistently profitable in all market conditions. 

Whether we’re trading biotechs with legitimate news, or looking at a chat-pumped chart from a purely technical perspective, it helps to have someone in your corner showing you the ropes in real-time.

Matt and I would love to be your right-hand mentors, and we’re inviting you to join our private chat room for just $9 a week for the first two weeks — we think you’ll be blown away by the value!

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Breaking News Chat is the alert service that traders can’t get enough of. Two former financial analysts scour the Stock Market and news for stocks that could potentially spike and alert the room allowing you the chance to get in on the action.

Check out the alert for NERV on August 24th: 

This is a tool you’ll want in your trading toolbox. 

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