Articles

By: Chris Rowe — July 27, 2019

Read before Monday's open - I have a double!

CHRIS

I usually don't write to you over the weekend but this is something you'll want to know before the market opens Monday Morning...

I have this trading service I've told you about that's had 22 winning trades and 3 losing trades blah blah blah.

I'm not here to brag about  the track record but I'm guessing you'd want to know the average gain was 45.6% and the average holding period was two and a half months.

That's a 215.3% annualized return for this service's positions.

Most of those gains were made during a challenging market but today we are in an extremely easy market to trade,

So I'm writing you to tell you that one of the positions I have open in the service right now looks like it wants to break out SHARPLY.

I think we are looking at a double, short-term.

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I want you to be in this position when it happens.  For all I know, it can break out Monday morning and you won't have the chance to dive in but if you CAN get in, I'd dive in head first.

You can see the spike in volume from Friday's trading.  Well, most of that happened 11:15am and 12:15pm.  It was clearly one big player.  Let's look at the intraday to see that buying...

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This is Friday's trading.  This is what it looks like when an institution comes in and tries to quietly gobble up a bunch of stock.

About 270,000 shares traded in that hour.  Then everything went quiet again.

But this happened right at a key price point for this stock.

Look at how it pulled back to the red 50-day moving average.  It spikes whenever it reaches that moving average in an uptrending market.

If this stock does what I think it will do this week, the call option will gain 95% from where it is right now, very quickly.

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Look at the lower right part of the chart to see the buy signal in a special indicator that I use.  It's not the regular RSI that most people look at.  It's the "exponential RSI", which attributes more importance to the more recent price activity.

The fact that it just moved from below 30 to above 30 is a huge buy signal.  Take a look at what happened to the stock on the past when you got that buy signal.

This is in a sector that most people never pay attention to, yet I've witnessed stocks in this sector spike several hundred percent higher in just a few days.

I'm going to send an update to all of the members of the trading service, "Deep Market Trader" about the position because I'm more bullish on this one after seeing that volume spike.

Like all of the Deep Market Trader alerts, this one had two parts:

  1. The stock alert
  2. The option alert

I will be alerting members to the increased likelihood of a spike higher.

The stock and the option are both up just a little bit from where I recommended them.  But take a look at the 1-year chart.

The stock moved higher and then it pulled back a bit - allowing new traders to jump in at this currently great price.

The last trade recommendation I made to Deep Market Traders was for the same exact reason...  I saw the same type of volume spike along with price spike happen in SNAP (blue arrow), so I recommended it (green arrow).

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I said to buy the stock, or call option, in SnapChat (SNAP).

Institutions try to buy these stocks quietly to accumulate as much as they can before the enormous buying takes place.

But they have a hard time doing so without us seeing the volume spikes that are merely above average.  Then, they suddenly step in and buy at 5 times the rate they had been buying at - something you can clearly see in SNAP.

So I'm telling you, today, that I think I have the next SNAP.  And I'll send members of my service an alert at 8:00am eastern, Monday morning about this.  So if you're a member of the service, keep an eye out.

At some point soon, I'll write another article like this one where I'll say "hey, I have this one position in Deep Market Trader that has all the makings of a short-term spike winner".

Again I'll say "sign up to take advantage before Monday".

Then I'll show a chart of the stock that I wrote about today.  I think it will look a lot like that SNAP chart by that time.

When you see that future article, you'll want to be the person who's in the position that just spiked higher, like those who went with me on the last trade, SNAP and are reading this right now.

So, feel free to sign up here, and take advantage of this stock before it spikes...

...But do so before Monday's market open.  This thing looks like it's ready to go.

Chris

CHRIS

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