GAPPERS---------
too risky to play due to LARGE AND HUGE SUDDEN DROPS IN PRICE if the stock is having an OFFERING. I am not adept to reading SEC filings to the extent of researching and identifying SEC Filings disclosing OFFERING/Dilution/ATM/Financing information.
Gappers typically all happen during pre-market (i am typically not awake and alert at this point.
stock's move quickly / highly volatile at market open where it matters most / my stats show i perform poorly in premarket, generally speaking).
GAP FILL SETUP:::: In the pre-market, anything that is over 100% and starts gapping and holding -- that's called a GAP FILL strategy (b/c it closed above the open). -Dux
TRACKING STATS ------ Min 51:20----Min 1:12:45 ----- PART 4 ---- TRADING TECHNIQUES ....Categorize my statistics based on Grittani's Trading Tickers 1 (PART 1) DVD in it's last 4 minutes! how he does it there is exactly how i gotta track stats and summarize them then into categories into a separate stat sheet!
- is the stock's [operating income] in the negative? (if yes, that's bad)
- is the stock's [net income] in the negative? (if yes, that's bad)
- is the stock's [cash equivalents] less than its [operating expenses]? (if yes, that's bad)
- does the company have any ability to [raise additional capital] or [grow] their business on terms acceptable to them, or at all? (If not, then the company is a short-selling play).
- Does the stock have good news?
- is the stock holding above the 100-day MA (moving average 100-day period)?
- what is the SHORT FLOAT INTEREST of the stock? (is it above 20%; if so that might scare me from entering long for a bounce)
- is the stock uptrending, or downtrending?
- The day before the stock GAPPED UP, did it have a strong close the day prior? Buy into the strong close at the end of the day; the stock gaps up overnight into the next morning, and you sell into strength. -Bohen
- How has the stock reacted to good news historically? (explain the consistent next 5-10 day candles following the stock's supernova/spiking)
- did the stock rid of all of its BAGHOLDERS when it gapped/spiked? [Min 20:40 | Min 30:30 | Min 36 - Min 40 | Min 50 | Min 58 -- https://youtu.be/zvs_8zF-i1E]
- what day of the week is it?
- is there such thing as TURNAROUND TUESDAY? track like this: https://bit.ly/3xy73Go
- is the stock a CHAT PUMP?
- did the stock have a positive news catalyst?
- did the stock have an OFFERING / WARRANTS? (reason for it's tanking / gap down) Min 35 --- RolandWolf finds his edge by looking at the SEC Filings... Roland's process takes him 3-5 minutes to determine if there's something in the filings he can use as an edge.... He looks for: [i'm just looking for Warrants] [I'm looking for ATMs: at-the-market offerings] [anything where there's going to be some dilution] [I look at the revenues quickly to see if they make any money whatsoever] [if they have any cash; if they're bleeding cash] ----- and if any of the certain criteria I look at come up, particularly as a buyer (long trader), you'll see things that directly impact that chart.... there'll be resistance on a chart and there's a reason for that (be it warrants or whatever it is), and it's not 100% of the time a concrete thing but it at least gives me some sort of idea as to if i can buy the stock or not -- www.youtube.com/watch?app=desktop&v=XY76jXe-Fk4 ..... #RolandWolf #warrants #offerings #revenue #dilution #ATMs
- did the stock release bad news #bad PR? (reason for it's tanking / gap down)
- did the stock hold it's PREMARKET highs after it GAPPED?
- was the stock an earnings winner?
- did the stock close strong on the previous day, and then not GAP UP the next morning? (if yes, then you have to sell #bearish)
- is the stock SSR (a short-sale restriction)? SSR restricts short-selling on downticks on stocks that have gapped down or have moved very fast down (more than 10% in a trading day). . . this was implemented back in 2010 to help prevent flash crashes and very fast decreases in stock prices. . . this means that short-sellers cannot short into the bid, they have to be bought into, to short sell. . .
- did the GAP UP / GAP DOWN trade (at market open) in the direction of its GAP?
- what % did the stock GAP? (should be >10%) (Min 58: https://youtu.be/zvs_8zF-i1E)
- a GAP for large-cap stocks, can be smaller: around 1%-4%... a GAP for penny stocks should be ideally 10% or more.
- Min 15:50 ------ on MID-CAP / LARGE-CAP STOCKS, anything that GAPS 4% or more, the stock will usually TREND in the direction of the GAP: GAP AND GO (which happens within the first hour in the market) | but any GAPS under 4%, that's a GAP and FILL and the stock will probably retrace back (which takes a longer time) <------TEST THIS THESIS [track samples] ---- youtube.com/watch?v=sWyWxajIP1A .....
- How did the stock perform the next day in the morning? did it GAP UP/DOWN? was it a DIP AND RIP? was it a WORG?...After a big run/SPIKE/GAP UP on Day 1 (or any day), you can expect to see some profit-taking and pressure from short-sellers... THIS LEADS To the stock being a watch for a [dip and rip] or a [weak open red-to-green] move the next morning... this pertains to a stock with NEWS, LOW FLOAT, HIGH VOLUME, and HEAVY FLOAT ROTATION. -[Bohen commentary]
- if a GAP UP on day 1: did the stock have a ton of short-sellers in it, and thus GAP UP ON DAY 2? I always want to know where the high is for a stock because that’s where shorts most likely have a stop. -Bohen
- how does the stock usually act, in it's past, when it GAPS UP / GAPS DOWN? does it give it all back the same day, or continue spiking on day 2, day3, day4....? based on the VOLUME it also had that day, heed that.
TRACK: up 30% on the day, minimum pre-market volume is 500k; there's certain red flag criteria which i can't give away but you'll figure those out yourself... figure out other certain statistics on the stocks, like Floats, market caps, distance from the 200 SMA, distance from the 200 EMA, short float %, insider percentages, institutional ownership... So these are stats that I track... and once you have a database of 300 tickers, then you'll be able to see which ones performed better and which didn't, and then you can filter the criteria for the ones that performed best for your strategy.. it all comes together once you have 300 data point samples in your excel file....... you gotta see the data happen in real time... it's all about putting the work in and doing it yourself.. you really gotta put the work in if you want to be successful.
- which tickers gapped (ticker symbol)?
- how much did they gap up (%)?
- what was premarket volume?
- what was the sector?
- what was the gapping stock's previous day's close like?
- ▶ did the stock gap MORE on days where it was CLOSING LESS STRONG the day prior? [in other words, if a ticker already has sellers in the close, there's going to be less sellers in tomorrow's open]
- ▶ did the stock gap MORE on days where it was CLOSING STRONG the day prior?
- did the GAP UP in premarket result in a 9:45am DIP AND RIP?
- did the GAP UP in premarket result in a AFTERNOON VWAP HOLD breakout?
- Is the company a biotech? (biotechs have poor fundamentals, meaning stock will likely tank on a day 1 spiking)
- is the company doing / done an OFFERING (SHELF OFFERING or ATM OFFERING)? [(search S3 or S1 form; check PROSPECTUS for 'SHELF' terms to see amount stated under 'common stock' 'preferred stock' 'debt' 'warrants'; then see if this is all in effect by clicking the FILE # and if 'EFFECT' is not written as its filing title/header then the company cannot yet use their MIXED SHELF yet) if a company has a lot of cash, has no need to do an offering, and has good fundamental news , then swing the stock long].
- average % Gain from market OPEN [was the %change >100%?]
- what was the avg HIGH TICK on the day, when the stock closed ABOVE its open price.
- what was the avg LOW TICK on the day, when the stock closed ABOVE its open price.
- what was the avg HIGH TICK on the day, when the stock closed BELOW its open price.
- what was the avg LOW TICK on the day, when the stock closed BELOW its open price.
- what was the stock's RVOL? [was the RVOL >5?] [current volume ÷ 10-day avg volume = RVOL]
- what was the % the stock closed below it's open price?
- what was the previous day's volume (prior to the gap occurring)?
- did the stock close below it's open price?
- what is the average GAP of the price overall (historically, what have the gap% been?: HOW TO CALCULATE A STOCK'S GAPPING %: previous day's closing price compared to the GAP's opening price) -- use https://percentagecalculator.net to calculate the difference between the CLOSE price and the GAP'S OPEN price.
Min 28 ------- finding an edge (an edge is something that repeats over and over again) ... data / stats tracking --------- youtube.com/watch?v=0NFcSBobv2g .......!!!!!!!! #statistics #dilution #gappers #gapups #shorting
If a stock gaps up and holds support, you've got a very easy risk level. -monaco
KEYS TO LOOK FOR ON AN END-OF-DAY GAP UP INTO THE CLOSE: I will buy stocks closing strong on the day... into the market close! with the anticipation that it will gap up.. i will look to buy strong stocks into the close, with the anticipation they will continue to drive up the next day... these stocks will have GOOD NEWS (earnings, etc), lots of VOLUME), would have supernova'd into the close, low float,,is up 100%+ in a day -- recognize this and sell into the spikes. -Bohen
STRATEGY::::::: when a stock spikes/gaps up (esp. on positive news), watch for a [dip and rip (after 9:45 am)], and an [afternoon VWAP hold breakout (after 2 pm); do not hold low float afternoon VWAP plays overnight however #caution]...... if it pulls back (and sucks in shorts), look for [a breakout] over that level........ The lower the float of the stock (<40M) the better, (the lower the market cap (<500M) the better). If it is a chat pump, that's even better.
Swing traders ------ Swing traders buy penny stocks that are holding gains and closing strong on the day. These traders love to sell their stocks on overnight gap ups or the morning spike. Which is why many times when penny stocks gap up overnight, they tend to sell off on profit taking.
The BEST and WORST catalysts ------------- Any forward-looking statement that has a hard date (i.e. stock "$___ has a news Conference next Friday.." (it's probably going to gap up leading into the event; but don't hold the stock into the event; that's a "BUY THE RUMOR, SELL THE NEWS" situation.... Avoid FDA catalysts, those are a waste unless it's phase 3 as that's the phase that really only matters and those ones are so rare too, and they just never even run... The best catalyst of all is SECTOR MOMENTUM (once the sector gets hot, everyone knows that it's in the hot sector and they run #SympathyPlays...
Swing traders love to sell their stocks on overnight gap ups or the morning spike. Which is why many times when penny stocks gappers gap up overnight, they tend to sell off on profit taking.
Min 7 ------- When a stock closes strong on the day, and then doesn't gap up the next morning, then you have to sell; not only you, everyone's selling -_- ------- www.youtube.com/watch?v=oDjD0VJhmWc ..... -[Matt Monaco & Bryce Tuohey]
A morning spike (gap up) --- shorts are getting squeezed...... then it takes a few days and it crashes down..... -Tim Sykes
________________________________________________OFFERINGS, WARRANTS, FINANCINGS, DILUTION, ATM
A stock has probably had a financing when it has a gap down... and a reverse split if it gaps up automatically from 20 cents to $1.80... -Dan Irish #gapDown
if a company cancels their OFFERING, meaning "no more shares are going to be issued", the stock can then GAP UP (leading to gap-ups). -Grittani #offering #gapUp
WHAT MAKES A STOCK TANK/GAP DOWN: 1. bad #news, or 2. the stock does an #offering
Min 3 -------- OFFERINGS, WARRANTS, FINANCINGS --- those are the three things that can really mess with the technical analysis. . . the stock instantly drops 70%+ in one candle, on WARRANTS and OFFERINGS (impossible for you to get out of the trade). . . . www.youtube.com/watch?v=_nJx2gsKKAg........... #Dux #GapDown
I don't like swing trading BIOTECHs because all it takes is for them to put out a negative press release and I've seen these things gap down 80%... that's not really something I want to keep my capital in overnight; i want to be able to sleep at night. -Dan Irish
Buy into the strong close at the end of the day (literally, the last 10 mins of the day (circa 3:50 pm); the stock gaps up overnight into the next morning, and you sell into strength. -Bohen
Monday gap-ups are notoriously known for being very good in spiking (when consolidation with volume happens on Fridays based on a stock's being up from a First Green Day a couple of days prior at the least), so long as it holds on Monday morning over the previous Breakout level. -[Marianna commentary] #mondays
OVERNIGHT::::: it could gap-up the next morning (take profits after morning gap-up / morning spike; or take profits the prior day as the AFTERNOON VWAP HOLD BREAKOUT happens).
VIDEO: USING SPIKEET TO TRACK GAP UPs STATISTICS [#gappers #gapups #gapdowns #backtesting #shorting #shortselling]
- Min 2 ------- creating the criteria to find GAPPER data --------- www.youtube.com/watch?v=H_U24p5h1O4 .......
- Min 10 ------ Min 12 ------ assessing the performance % of the gappers ------ www.youtube.com/watch?v=H_U24p5h1O4 .......
- Min 15 - Min 19 ------ creating a short-selling strategy (based entries and exits automation) of the gappers % performance -------- www.youtube.com/watch?v=H_U24p5h1O4 .......
- When tracking VOLUME, always track both of these:::::: [VOLUME in premarket] and [VOLUME end of day].......
- What was the stock's OPEN price?
- What was the stock's CLOSE price?
- What was the stock's HIGH TICK price?
- What was the stock's LOW TICK price?
I ALREADY WATCHED EVERYTHING BELOW!
Min 11:30 - Min 14:30 ------------- consider setting up a scanner that tracks GAP UPs on stocks with catalysts ---------------- www.youtube.com/watch?v=yFoBnM0iSlc ..................
HOW TO TRACK A GAP AND CRAP PATTERN (example)
if i want to trade Gappers, THEN THIS IS HOW I WOULD TRACK: ... if i want to short gappers, then have a criteria for scanning, being: it's up 30% on the day, minimum pre-market volume is 500k; there's certain red flag criteria which i can't give away but you'll figure those out yourself... figure out other certain statistics on the stocks, like Floats, market caps, distance from the 200 SMA, distance from the 200 EMA, short float %, insider percentages, institutional ownership... So these are stats that I track... and once you have a database of 300 tickers, then you'll be able to see which ones performed better and which didn't, and then you can filter the criteria for the ones that performed best for your strategy.. it all comes together once you have 300 data point samples in your excel file.. you gotta see the data happen in real time... it's all about putting the work in and doing it yourself.. you really gotta put the work in if you want to be successful. [SOURCE: min 36, www.youtube.com/watch?v=7ITsJr1hjl8].... #KrisVerma #Bohen
-
MY SPREADSHEETS GOTTA BE PERSONALIZED TO ME: If you're using my spreadsheet 6-months from now, you fail... get started to get an idea, but if that spreadsheet is identical to mine, you fail. it's gotta be customized to you and that comes from putting in the reps.... -[Bohen and Kris Verma commentary]............Min 31 -------- understanding stock variables that run identical to one another and play out the same #MarketAdaptation ------ www.youtube.com/watch?v=sT_pwCKEJ_Y ......... #TrackStatistics
Buy the rumor, sell the news -------- GAP AND CRAP pattern explained --------- why a stock rises and then craps out on good news (b/c the price is already priced in -- everybody already knows the news/rumor) --- when good news is announced, the stock drops (this is b/c the news was already priced in ahead of time) ---------- Min 3:10 -------- www.youtube.com/watch?v=tT0EZNSR6Q0 .......... #earnings........
Stock splits tends to die out once they actually take place. They’re usually ‘buy the rumor, sell the news’ events… -Mark Croock [he spoke this in reference to the current market environment, but it's still something i shall potentially heed nonetheless]
BUY THE RUMORE, SELL THE NEWS: Something as small as a contract rumor could drive a crazier price action than an actual contract. All the hype can create momentum, which is great for traders... All Aboard the Hype Train Hype and speculation provide trading opportunities.
Swing traders ------ Swing traders buy penny stocks that are holding gains and closing strong on the day. These traders love to sell their stocks on overnight gap ups or the morning spike. Which is why many times when penny stocks gap up overnight, they tend to sell off on profit taking.
I will buy stocks closing strong on the day... into the market close! with the anticipation that it will gap up.. i will look to buy strong stocks into the close, with the anticipation they will continue to drive up the next day... -Bohen
I don't like swing trading BIOTECH because all it takes is for them to put out a negative press release and I've seen these things gap down 80%... that's not really something I want to keep my capital in overnight; i want to be able to sleep at night. -Dan Irish
A stock has probably had a financing when it has a gap down. . . -Dan Irish
A stock that gaps, typically keeps on gapping... And you could say that the opposite way -- a stock that doesn't gap, very rarely will gap. .. . . Cause stock's like to repeat themselves; it's the same patterns over and over again... -[Matt Monaco]
OTC MARKET GAP UPS (Friday spikes, Monday morning spikes | weekend holds)
I love OTCs (over Nasdaq or any other exchange) because they don’t trade very much premarket or after hours … a few orders sneak through.
By and large, if a company has good news overnight or premarket, everyone has to buy right at the open. This is what I love. (this allows OTCs to really surge predictably).
One of my favorite strategies is buying a stock with good news on a Friday / Friday afternoon and holding it over the weekend.
As people read about it over the weekend, they put in their buy orders -- all the buy orders stack up on Monday morning, and you can just sell into the spike.
This creates a little bit of an opportunity where there’s no pre-market trading, and that allows for a more predictable GAP UP or morning spike based on supply and demand. -Tim Sykes
-
The hype-believers or newbies looking for a lottery ticket see the news after-hours. But they can’t buy. So, they put in an order to buy as soon as the market opens. Those orders stack up — demand is high. And that can create a GAP UP where the stock opens higher than it closed.
Min 21:30 ------- Grittani on OTC stocks (gap ups) | they're much better at holding their gains..... HOLDING OVERNIGHT: Grittani prefers holding #OTCs overnight (not listed/Nasdaq stocks). I think it's a lot higher odds when you see an OTC closing strong on the day, that it will GAP UP and have another strong day. OTCs are very technically pure (clean charts). With listed stocks, it's much more of a toss up; take the trade, but manage your risk. If the stock GAPS DOWN the next morning instead of GAPPOING UP like you expected, you just gotta get out ---------- https://youtu.be/mDrcRDcjRCw ......
ANSWER: 100%. I love OTC stocks because they’re less choppy. OTCs don’t trade premarket or after-hours, so a lot of the orders pile up.
Let’s say an OTC company has good news overnight or before the market closes. If anybody sees that news and wants to buy anytime in the next day, all of those buy orders pile up and try to get executed right at the market open at 9:30 am.
This usually creates a GAP UP or a morning spike as the market makers like to spike this stock when there’s say 200 different people who want to buy, and only seven people who want to sell. That’s versus Nasdaq or other exchanges where they trade pre-market. They’re usually more liquid. They’re easier to get executed.
Even if you put in an order on an OTC stock, you might not get executed for a few minutes. It’s a much smaller exchange, and that can lead to good and bad.
The good thing is if a stock does have good news — if there are a lot of buyers — it pushes the price up. And if you’re already long, it’s just like surfing. You’re riding a wave of buyers.
But it’s bad if you’re trying to sell into a panic and you can’t get out because everyone else is trying to sell too. So you have to think about the differences between Nasdaq or listed stocks and OTC.
The First Green Day pattern is more predictable with OTC stocks. Why? OTC Stocks Don’t Trade Premarket..... Because with listed stocks, you never know what will happen in extended-hours trading.
If you hold the FGD pattern overnight on a listed stock, you need to be present during extended hours. You need the ability to trade in extended hours and watch the stock to protect yourself..... With OTCs, less meticulous, uneducated traders see the price action/news after hours. They get interested — but the market’s closed. So they place a market order that gets executed at the market open. This can create a GAP UP. For this reason, an overnight hold on the FGD pattern tends to be more reliable with OTCs.
IF A STOCK GAPS UP, AND HOLDS ITS SUPPORT LEVEL #OTCs
If a stock gaps up and holds support, you've got a very easy risk level (and you can just basically click the buy button) #lol -Matt Monaco
STOCK GAP DOWNS CAN BE POTENTIAL BUYS
When you have a gap-down and the stock's trying to come back, they actually have a tendency to fill the gap.. don't expect necessarily that the gaps will be filled, but they will try to make an attempt..... -Sykes
OTCs TEND TO GAP DOWN (THE PLAYS CAN BE WEIRD | BE MORE CONSERVATIVE ON "WEIRD" PLAYS | MAKE A MENTAL NOTE ON THESE ONES)
The thing is down 80%. . . it GAPPED DOWN 80%. . I know some people were long overnight. . . that's the risk with OTCs. . . On any play, especially these sketchy OTCs, you can have these big gap downs. . . -Sykes
Min 8:30 -------- WHEN YOU GET THE GAP, SELL THE GAP::::::: when it gaps up 10%-40%, you sell::::::: sell the GAP UP for OTC stock moves -------- www.youtube.com/watch?v=441zuv1YJes ........
There are millions of trading patterns... So how can new traders find what works for them?... keep it simple.
1. the OTC gapper: OTCs can be great for traders with small accounts.
[a big percent gainer … It hits multi-month and multi-year highs. When this happens, it tends to show up on everyone’s scanners. Traders are buying into that close. Then it proceeds to trend up all day].
2. the morning panic dip buy:
[an OTC gapper for four days in a row ... Once the stock has gapped up, it goes red and crashes hard. Look for the turning on the level two … They see bidders step in and a green candle on the five-minute chart. That’s what traders key in on].
OTC up-listings are great catalysts [super rare though, they're not common].....
Then one day before the conference call, it started spiking on heavy volume, from the $1s all the way up.
Then you have the big crash from $5 down to $1. It actually was a good dip buy. So you could say it’s a #4 to #5 pattern, if you’ve used my seven-step framework. But the whole run-up from the $1s to the $5s was momentum buyers, hot sector, hot market, short squeeze.
Heading into the conference call, it actually dropped quite a bit … You didn’t know what was going to be said. It was already up. It was quadruple (in basically two days). Sure enough, during the conference call, I think it was the president who resigned. It was crazy.
Normally in a conference call, you announce good news. But it was one of the worst conference calls that I’ve ever heard — just bad news. They did a little Q&A that was terrible. The stock was halted for a while — a gap down from the conference call.
So the moral of the story here is buy the rumor, but do not hold into the news. The news is unpredictable. And in fact, it paid off to short the news. -Tim Sykes [Buy the rumor, sell the news]
PENNY STOCK FRAMEWORK DVD: CD 4 --- min 1:43:00 ---- on GAP UPS / market manipulation #masking ---- https://members.timothysykes.com/login -- sn: saloul10@gmail.com -- pw: pduyygaj
A morning spike (gap up) --- shorts are getting squeezed...... then it takes a few days and it crashes down..... -Tim Sykes
Part 2 of SPIKEABILITY DVD ------ Min 1:35:40 — on GAPPERS / GAP UPs ---------- https://members.timothysykes.com/login---------saloul10@gmail.com | pduyygaj ............
Min 1 -------- buy into
the strong close at the end of the day; the stock gaps up overnight into
the next morning, and you sell into strength ------- youtube.com/watch?v=Z3QB0yysEpo ....... #gappers
Min 4:45 -------- look at
the morning gappers (observe the setups pre-market) -- (more than 25% gap up | more than 5M volume in pre-market | news catalyst) ------- https://youtu.be/VyZA2CI2j6U ......
The BEST and
WORST catalysts ------------- Any forward-looking
statement that has a hard date (i.e. stock "$___ has a news
Conference next Friday.." (it's probably going to gap up
leading into the event; but don't hold the stock into the event; that's "buy
the rumor, sell the news" situation.... Avoid FDA pharmaceutical catalysts, those
are a waste unless it's phase 3 as that's the phase that
really only matters and those ones are so rare too, and they just never even
run... The best catalyst of all is SECTOR
MOMENTUM (whether it's crypto, or whatever), once the sector gets
hot, everyone knows that it's in the hot sector and they run
#SympathyPlays...
TRY THIS STRATEGY ----------------------- Min 5 ---------- Min 11 -------- min 16 --------- a gap-up strategy to try and play --------- youtube.com/watch?v=0aEHIQ3mmVo ............. #Gapper #GapUp
DO NOT TRADE IMMEDIATELY AT MARKET OPEN
Min 8
--------- trade your strategy..... how is the stock moving based on
your strategy? you will know when to enter and exit based on your
profit target and stop loss levels" -Superman......
"i usually wait 15 minutes, just to see what happens at market open" -TriForce......
"I rarely enter a new trade right at the market open; if you're buying the breakout, they can end very quickly, it's tough for me; most of the time i'm closing a short-position overnight into a morning panic at the open" -Sykes.......
yo, i should not be trading right at the market open (9:30 am) --------- www.youtube.com/watch?v=Yue7xvNfY6E ...........
I barely ever really enter in a
new trade right at the open... buying a breakout can end very quickly... or it
can spike up very quickly at the open if there's a news catalyst...usually when
you see me trading at the market open, I'm closing a position
(I'm closing an overnight short ideally into a morning panic) or
(I'm selling a long ideally into a GAP UP)........ #Sykes #Superman #TriForce
#PLAYS
Min 17:20 -------- what a "reverse split" looks like on a chart (a reverse split`s technical analysis) | if something goes from 20 cents to $1.80, just assume it's a split ------- www.youtube.com/watch?v=QU1bBmRyKn0 ........ #reverseSplit #gapup #danIrish
KEYS AND TIPS AND INSIGHTS FOR HOW TO BACKTEST MY OWN STRATEGY / PATTERNS ------- inthemoneyadds.com/case-study-how-i-found-an-edge-in-first-day-gap-up-plays ...... #NivGoren
When the stock goes
crazy, that's when you really want to trade.....when there's pandemonium going
on... buy a breakout above the previous high....also toward the end
of the week, buying on a Friday==Friday's are very special where the
hype can really build, short-sellers are scared to hold short during the
weekend, so it gaps up over the weekend.......it really spikes, and it
crashes in a 30 minute period on Monday ..that's volatility.... -Tim
Sykes
Monday gap-ups are
notoriously known for being very good in spiking (when consolidation with
volume happens on Fridays based on a stock's being up from a First Green Day a
couple of days prior at the least), so long as it holds on Monday morning over
the previous Breakout level. . . -[Marianna commentary] #mondays
HOW #Grittani BUILDS HIS WATCHLIST........ GRITTANI SCANS for stocks up >10% on the day, and has traded at least 3 million DOLLAR VOLUME on the day (a million "shares" is very
different in liquidity for a 5cent stock versus a $5 stock)...... So i scan for
DOLLAR VOLUME because i want to ensure that I'm getting a certain amount
of money flowing through the stock.. Then I pull up the
daily chart to see what the volume and volatility looks like compared to the
previous year, and i look at the chart... out of all the 20+ tickers that show up on my
scanner, i type out a little plan for each chart/ticker that i like... i
prioritize which one to trade over others (based on which patterns i have had the most success with and the ones with the most volatility;
then the next morning i see which way it's gapping the next morning) -[Grittani]
Grittani's PRE-MARKET
SCAN (circa 2015, so
some of these # may need to get adjusted, such as volume/dollar volume
especially (which Monaco for instance scans for $1m of dollar vol.)
·
at least $100k in dollar volume
·
lower priced ($15 or under)
·
stocks that are gapping up (at least 20% up)
·
then I pull up the daily chart, and go from there...
Stock is gapping up, has volume, has news.... great....... look for support and resistance next (is the stock holding it's pre-market highs?)........... if it comes down you can get a bounce play (off a 100-day moving average).......check Finviz for short-float interest (if it's high, 20-30%, then it might mean a lot of ppl are shorting the stock so that can make me a lil bit nervous)...... if it has a low float it can make a quick spike/quick move relatively fast to give you a quick profit........ is the stock down-trending, up-trending?
Min 5
------- Do not try to predict good earnings.... There [are] variables that are
unpredictable.. if a company reports good earnings, there should be a gap up
(and then I'll buy the HIGH OF DAY breakout).... OR buy the stock in
anticipation of the good news, then get out before the news is released so you
don't get caught in the Gap-and-Crap ----- www.youtube.com/watch?v=tT0EZNSR6Q0
...
OVERNIGHT:::::::::: it could gap-up the next morning (take profits
after morning gap-up / morning spike; or take profits during the prior day as the AFTERNOON VWAP HOLD BREAKOUT plays out).
STRATEGY:::::::::: when a stock spikes/gaps up (esp. on positive news), watch for a [dip and rip (after 9:45 am)], and an [afternoon VWAP hold breakout (after 2 pm); do not hold low float afternoon VWAP plays overnight however #caution]...... if it pulls back (and sucks in shorts), look for [a breakout] over that level........ The lower the float of the stock (<40M) the better, (the lower the market cap (<500M) the better). If it is a chat pump, that's even better.
HOW TO KNOW IF A PENNY STOCK GAP-UP (IN
PRE-MARKET) WILL HOLD
#BIOTECHS are
cash-burning machines..... all of their trials and tests they do (to get FDA
approved) cost a lot of money.... they also have highly paid executives and
board-members, thus they're usually poor for cash (poor for cash because
of: 1] expensive trials to pay for the drug
experiments, and 2] paying executive salaries) ---
thus, they're likely to do OFFERINGS...... confirming this by reading the SEC filings will
give you an edge....... This can be found in the S-3
(S3) form {or S1 / S-1 form}.... under the "SHELF" registration terms in
the "PROSPECTUS" section (showing the amount of what the company is allowed to sell so as
to fundraise capital), listed under: "common stock" "preferred stock"
"debt" "warrants".............. they can literally sell
anything that's listed under the PROSPECTUS, that's listed
out............................ SO TO RECAP:
the company filed for S-3, and once approved for the amount stated, they can
literally put up on the "SHELF" the shares they want to sell (under
"common stock", "preferred stock", "debt",
"warrants") ---- this is called a MIXED SHELF / SHELF OFFERING.................. to know if this is in effect, go to the File # and
click on it --- if it doesn't have "EFFECT" written as
it's filing title/header, then that means the company cannot use their MIXED
SHELF (not yet at least)............... ATM OFFERINGS mean that the company
can sell a certain number of shares anytime during market hours (during these
offerings) ---- this is a win-win situation for the pennystock company and the
underwriter, but a BIG LOSS SITUATION for the investors buying -------- whenever you see the name/word "JEFFRIES"
or "MAXIM" or "H.C. WAINWRIGHT"
(underwriters) in the SEC filings, that should be a big red flag -- PENNY STOCK
COMPANIES LOVE TO DEAL WITH UNDERWRITERS WHEN DOING OFFERINGS ----- WHENEVER
YOU FIND THESE NAMES IN THE SEC FILINGS, SOMETHING IS UP.......................... use keyword searches to do all of
this research in under 10-minutes.............. if a stock DOES HAVE
OVERHEAD supply, you want to be SHORT-BIASED on it (never long these stocks
overnight because you run the risk of being dumped on in after-hours/the next
day)................... now, if a company has a lot of cash, has no need to do an
offering, and has good fundamental news -- then i would consider swinging the
stock long............... {source: https://youtu.be/QGETa3uzN3I}.
Bagholders from last week got their dream of getting back to breakeven. Anyone with profits was happy to sell into a 100% gap-up…
NEVER buy in anticipation of earnings....... an earnings winner is one that gaps up and runs AFTER earnings....... join the trend and join the crowd..... don't play guessing games...... don't buy earnings before it is released....... wait to see how the market reacts...... the market is always right.
Swing traders ------ Swing traders buy penny stocks that are holding gains well and closing strong on the day. These traders love to sell their stocks on overnight gap ups or the morning spike. Which is why many times when penny stocks gappers gap up overnight, they tend to sell off on profit taking.
Min 2:48 ---- Drawing out visual daily gaps, earnings gaps ---------- www.youtube.com/watch?v=rq4jthS3nTA ..............
Min 7 ------- When a stock closes strong on the day, and then doesn't gap up the next morning, then you have to sell; not only you, everyone's selling -_- ------- www.youtube.com/watch?v=oDjD0VJhmWc ..... -[Matt Monaco & Bryce Tuohey]
I'm more likely to buy morning spikes, on Fridays......-Sykes
Min 14 - 15 --------- if a company cancels their OFFERING, meaning "no more shares are going to be issued", the stock can then GAP UP (leading to gap-ups) ---------- www.youtube.com/watch?v=zMgWT8BSwdE ........ #sykes #grittani
Min 20:30 --------- tracking GAP UPS | Dux speaking on his samples for this pattern ---------- https://youtu.be/NZjN_lQyNTI ........ www.youtube.com/watch?v=cUN_U26vYlY ..........
SSR ---------- [short selling restrictions] -------- this restricts short-selling on downticks on stocks that have gapped down or have moved very fast down (more than 10% in a trading day). . . this was implemented back in 2010 to help prevent flash crashes and very fast decreases in stock prices. . . this means that short-sellers cannot short into the bid, they have to be bought into, to short sell. . .
An offering is when a company sells more shares to the public to raise money. Now there are more shares circulating, and a higher supply means a lower price. That’s basic economics. Penny stocks always do sketchy stuff like this. When I saw what happened, I cut my losses. It was a little gut-wrenching but I had to stick the #1 rule. Always cut losses quickly. It’s a good thing I got out, too. Look at what the stock did after…It’s all downhill. If I held, I’d be down a couple thousand more dollars. -[Roland Wolf commentary]
I’m looking for the gap and
crap pattern. Here’s how the pattern plays out:
- The stock GAPS UP on news
- Then, it craps out a bit
- Next, it puts in some
sideways price action [I want to see the stock hold a key level, usually, at
the whole or half dollar.]
- Finally, it goes back to
highs
WHAT MAKES A STOCK TANK
/DROP IMMEDIATELY / ABRUPTLY / GAP DOWN
- a bad PR [bad #news]
- the company just dropped
an #offering -[Dan Irish commentary]
____________________________________________________________________________________________________
Min 3 --------- When a stock does a warrant / offering, the stock instantly drops about 70% - 75% in one candle ------ www.youtube.com/watch?v=_nJx2gsKKAg ........... #Dux #gapDown
Min 5:50 -------- Scanning for large cap/small cap gappers in pre-market ---------- www.youtube.com/watch?v=Kc1BqinZ994 ........ #kunal #bthestory #scanning #largeCaps #ATR #averageTrueRange
Min 2:48 ---- Drawing out visual daily gaps, earnings gaps ---------- www.youtube.com/watch?v=rq4jthS3nTA..............
Min 35 --------- RolandWolf finds his edge by looking at the SEC Filings...... Roland's process takes him 3-5 minutes to determine if there's something in the filings he can use as an edge.... He looks for: [i'm just looking for Warrants] [I'm looking for ATMs: at-the-market offerings] [anything where there's going to be some dilution] [I look at the revenues quickly to see if they make any money whatsoever] [if they have any cash; if they're bleeding cash] ----- and if any of the certain criteria I look at come up, particularly as a buyer (long trader), you'll see things that directly impact that chart.... there'll be resistance on a chart and there's a reason for that (be it warrants or whatever it is), and it's not 100% of the time a concrete thing but it at least gives me some sort of idea as to if i can buy the stock or not -------- www.youtube.com/watch?app=desktop&v=XY76jXe-Fk4 ......... #RolandWolf #warrants #offerings #revenue #dilution #ATMs
Min 22:55 --------- HOW TO MANAGE MY TRADE:::::::::: RAISE MY STOP LOSS HIGHER IF THE TAPE IS HOLDING A LEVEL HIGHER THAN WHAT I WAS CURRENTLY RISKING; RAISING MY STOP LOSS MEANS I CAN BUY ADDITIONAL SHARES, THUS LOWERING MY AVERAGE ENTRY PRICE, WHILE MAINTAINING GOOD RISK MANAGEMENT!) --------- manage my trades by raising my RISK LEVEL (raising my STOP LOSS), which would then enable me to add more shares to my current open position, based on the SHARES I TOOK with my risk initially being lower, serving as a fraction of the TOTAL POSITION SIZE I AM ABLE TO ACTUALLY TAKE when i to raise my risk(stop loss) level! ------- Trading Tickers 2 – Chapter 7 -------- https://members.timothysykes.com/lessons/trading-tickers-2-chapter-7 ......... #RiskMgmt
· GAP FILL (into) CLOSE happens 2:30 pm - 4 pm (you can still get in after-hours or after market-close). ---------- starts at Min 1:34:40 in "Part 2" of Trading Techniques DVD.... Min 1:42:50 of "Part 2 ORIGINAL" vid... TRACKING STATS: Min 47:10 AND Min 1:06:45 AND Min 2:43:00 of "Part 4" of vid... <-----------ALREADY WATCHED..........
Min 11:30 - Min 14:30 ------------- consider setting up a scanner that tracks GAP UPs on stocks with catalysts ---------------- www.youtube.com/watch?v=yFoBnM0iSlc ..................