Hey, gang. Matt here.
2021 is almost over, but the markets are heating up just in time for the Santa Claus rally!
Let’s go over three tickers I’m watching closely heading into the end of the year…
Exxe Group Inc. (OTCPK: AXXA)
AXXA has been the runner to watch in the OTC markets ever since it went from 2–7 cents at the beginning of the month.
A series of super clean breakouts — followed by equally impressive holds — puts AXXA near the top of my watchlist for the end of the year.
I didn’t trade the big move on Monday, December 13. I’m SUPER bummed about this.
There’s no excuse. The price action was perfect, and it was horrible for me to miss it. Just look at this beauty…
(AXXA 10-day chart, courtesy of StocksToTrade.com)
After that, I watched a backtest of 5 cents, which we got on Thursday, December 16. All in all, AXXA is holding up nicely after such a large initial move. This could indicate that the chart’s heading higher.
That being said, I’d be more intrigued if AXXA got pummelled back to 3 or 4 cents — the support zone near an older breakout.
If we get that nice dip, I’ll watch AXXA for a potential trade on a rip-roaring first green day.
Icoa, Inc. (OTCPK: ICOA)
AXXA’s insane move is heating up the OTC markets, and ICOA is another stock benefiting from the price action.
(Please, Santa … bring OTCs back for good!)
Just look at ICOA’s end-of-day breakout on December 13. Then notice the chart’s follow-through on December 14 as well…
(ICOA 10-day chart, courtesy of StocksToTrade.com)
It’s worth paying attention to this. We haven’t seen this kind of price action in the OTC markets since early 2021.
This bullish move in ICOA is an example of my bread-and-butter, textbook setup. I’ve probably made half of my lifetime profits on afternoon OTC breakouts like this one.
I didn’t capitalize as much as I should have on ICOA because the volume was weak. But I was probably overthinking it…
While low volume can be a concern, I shouldn’t have let it color my thinking on this setup.
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If it holds there, I’ll watch for a similar afternoon breakout in ICOA toward the end of the year.
GameStop Corp. (NYSE: GME)
In a little less than a month, legendary meme stock GME has gotten CLAPPED from $250 all the way down to a demoralizing low of $136. This is utter destruction, folks.
When red-hot momentum runners get clobbered back to earth, there’s usually a wild first green day looming on the horizon.
This is exactly what we got when the stock market attempted to bounce on December 14 and GME got its first green day in style, touching $150. Here’s the chart.
(GME 10-day chart, courtesy of StocksToTrade.com)
I took a very small piece of GME that day … It was another textbook trade.
WARNING: Notice the pattern. I only trade my ideal setups!
Now it seems to be holding $150 nicely — a hugely important psychological price level. If the Santa Claus rally is strong this year, I think GME could present juicy setups.
Remember: Never discount a former runner! And GME might be the biggest former runner of all time…
Conclusion
We’re getting down to the wire for 2021, but the Santa Claus rally has just begun.
Take these charts into consideration. Be sure to keep your eye on them in the final days of the year.
But most importantly, happy holidays, everyone! Have an amazing break, rest up, and get ready to crush the close of 2021!
To the moon!
Matt Monaco