Day 3: Penny Stock Decision Day

If you didn’t see or trade it, urban-gro Inc. (NASDAQ: UGRO) went bananas on Wednesday and brought back the mania…

The Game is Rigged

My Algo Levels the Playing Field

That’s the same day UGRO signaled on Oracle and appeared here as my top Daily Accelerator stock to watch. There are so many ways to trade these when they defend on day 2. Today, I’ll show you the best entry for this setup. It’s also the easiest to prepare for.

Here’s the Daily Accelerator agenda for today:

• The Big Picture: Penny stocks have a life cycle. When they spike on day 1, and hold on day 2… day 3 is decision day.
• Watchlist: UGRO needs a few days of consolidation to keep going but I’ll take the fist-bump. Meanwhile, one stock is setting up in a similar fashion. Hold the reins tight, this one could go.
• On My Radar: 7 books I’ve read in the past 6 months, a must-watch video to prepare for the next UGRO, and the most important mindset tip I can give you.

The Big Picture

If you go back a couple days, I said it only takes 1 box-checker to bring everything back.

Specifically, I was talking about UGRO. I first called it on Monday, talked about it on Tuesday, and wrote about it here for Wednesday. Not to toot my own horn, but I nailed it.

Here’s the beauty. When you get these stocks, there are so many ways to play them, so much opportunity. But some people missed what happened on Wednesday because on day two (Tuesday) it just kind of chopped around. It held most of its gains, but didn’t do a whole lot.

Come Wednesday, that’s where things started popping off. That’s the beautiful thing about these stocks that defend and don’t follow the penny stock life cycle. UGRO was impressive right out of the gate on Wednesday. And by the end of regular trading, it was off the charts.

Probably the best and easiest entry was the Day 3 Surge, which was about $9 a share. Some people call it a multi-day breakout, but the pattern I’m looking for happens on day 3. So, keep that in mind. That hit around 10:30 a.m.

Fast forward to the afternoon, there was a big red candle coming out of a halt (see the chart below). That was short bait. It lured in the shorts. Then there was a high-of-day panic, the squeeze point, and then it went parabolic. The after-hours squeeze continued up to $56+.

My Take

Like I said, there were a lot of ways to play this, but the best three were:

1. The Oracle signal in the low $8s
2. The Day 3 Surge described above
3. The squeeze in the afternoon.

The easiest of the three was the Day 3 Surge at $9. So look for that pattern: penny stocks that hold up, defend on day two, and then retest the day-one high on day three. See the Watchlist Update chart below.

Watchlist

MASSIVE Daily Income Trader Win: Epiquest Education Group International Limited (NASDAQ: EEIQ).

I highlighted EEIQ on pre-market prep yesterday as an oil and gas play, and the day’s top watch. It crossed Oracle Algo’s long signal at $5.54, exploded out of the gate, halted not once but twice, and broke through pre-market highs to hit $12.70. EEIQ could be setting up for a Day 3 Surge.

Watchlist Update: UGRO went nuclear and Oracle nailed it. The long signal was $8.41. On this chart, it was already up 371%:

UGRO hit a high of $56.56 in after-hours trading, a massive 572% gain from the first Oracle long signal.

On My Radar

• Prepare for the next Day 3 Surge with this video: Why Most Penny Stock Traders Get Trapped at This Phase (It could be the most important 8 minutes you spend today.)
• If you want exceptional results, you’re gonna have to put in exceptional effort. Controlling yourself is the best weapon when it comes to trading.
• Daily Income Trader students always ask what I’m reading. I’m a big believer in personal development, and reading is a great way to stay sharp. These are the books I’ve read in the past few months (I’ll get to trading books next week):