Going back to last week, Monday and Tuesday were off the chain. Then things hit the skids on Wednesday. It just totally dried up. Thursday was slow, and Friday was brutal.
If you were a little frustrated…
I was right there with you, brother. I was all beat down. Then one low-float box-checker changed everything…
Here’s the Daily Accelerator agenda for today:
- The Big Picture: All it takes is one to bring everything back.
- Watchlist: I laughed out loud when I read the press release. So did the short sellers. Now they’re dead and buried.
- On My Radar: What to do if it rains on your wedding day, why I’m rereading Moby Dick, and a trading tip for newbies.
The Big Picture
Last Friday, we were wrapping up an in-person training event in Florida and a lot of people were concerned. There were trades on volatile, low-priced stocks, but the temperature of the room definitely came down by the end of the week.
People were asking, “Is the volatility gone? Are penny stocks over?”
Here’s what you need to understand…
Markets hate uncertainty. When there are all of these things going on in the world, investors, traders, everybody starts getting scared. And when people get scared, they don’t put money into the market. They pull it out, or they stand pat.
So, we had a rough week last week. The S&P 500 broke the 200-day moving average.
That’s why, when people started asking about the kinds of setups we trade, I gave an answer that I’ve probably given thousands of times…
Penny stocks aren’t dead. They’re never going anywhere. There are seasons. They heat up… they cool down. But I’ve been trading 22 years now and they ain’t going anywhere. Once we get a box checker, that low-float, crazy unusual volume stock, with a catalyst, that runs all day…
You’re gonna go back to complaining that there are too many stocks, too many movers, and that you can’t trade them all.
On Monday (March 23) it happened. Get excited.
My Take
Even I was feeling beat down last week.
You do have options:
- You trade less.
- You trade smaller.
- You don’t trade at all.
But there’s another approach. I know it’s corny, but I call it the Alanis Morissette analogy based on her song about rain on your wedding day…
You can ruin the day for you and your soon-to-be spouse, the guests, and everyone who made the trip or…
You can laugh about it.
That’s what the end of last week was like.
But all it takes is one…
Watchlist
On Monday (March 23) urban-gro Inc. (NASDAQ: UGRO) checked every box.
- It’s a low float stock, only 664k shares.
- It did a 1-for-25 reverse split on February 9 to maintain its Nasdaq listing
- The company pumped out a total BS press release
- It had great volatility in premarket trading
- And volume was off the charts….
Source StocksToTrade UGRO 3/243/26 5-min candle
Before Monday, the 60-day average volume was 500k shares a day. By the end of the day it had traded 163 million shares. That’s insane float rotation (245x).
The Oracle entry signal was at $3.81. By the time UGRO hit high-of-day in after hours trading, it was up another 139%.
Notice how it was just grinding sideways and then there was a straight vertical move post 2:00pm. That’s a textbook short squeeze.
Shorts laughed at the press release as well. Then they piled in and got trapped. That’s a whole lot of pain.
For two decades, I’ve traded one setup and told practically no one about it.
It didn’t need headlines to work. It didn’t need a bull market. This setup signaled positive gains 3 out of every 4 times it appeared, even while the conflict in Iran was unfolding.
Then the U.S. government did something that changed my mind about keeping it quiet.
The SEC recently passed an amendment – with almost zero media coverage – that is already supercharging a small group of stocks by as much as 9,900%.*
This single decision is about to flood the market with more of these setups than I’ve seen in my career.
That’s why I called Tim Sykes and told him everything, then Sykes cleared his schedule.
We’re holding an urgent briefing TODAY at 8pm ET to break it all down
On My Radar
- If the market’s raining on your day, laugh it off with Ironic by Alanis Morissette
- Trading Tip: Instead of just watching direction, watch structure. Structure shows intent before big moves.
- This pic inspired me to reread Moby Dick. I can’t hang it up in my office until I’m done, dems the rules.
Source: my office