Hey there, I hope you had a great week. Trading has been going well. This past week Small caps were on fire. Thanks to $BPTH, the low float sector caught on fire. Today I will go over the recent premium trades that were presented this week. In addition, I will provide links to the video recaps for this week. Let's dive right in!
As I begin to write this, $BPTH has risen from a low of $2.60 to the peak of $73 in a span of one week. I am lost for words. The Markets handed a premium set-up that all of us can learn from. Currently, $BPTH is fluctuating in the '30s after being halted numerous times. I am amazed. This is my first real-time witnessing a massive Short Squeeze. Do you remember $DRYS, if not I'll post a chart from the time it went to $10-100 in three days?
I will go in reverse order. Starting with $BPTH. As I have mentioned in the previous post my trade on this Ticker was last Friday. I took a loss of roughly simply because I ignored the rules, and when you break the rules you deserve too loose. Never get greedy while trading, the Market will always humble you. Some may argue our sole purpose is to extract money from the Markets, on the flip side the Markets purpose is to extract money from you. Sorry for going off-topic. Lets back up to last week when $BPTH made its initial run. On February 28, 2019, a Press Release was issued by the Company. I want to inform the readers before I get into detail I am Not criticizing anyone within this Company, I am detailing the price action that was received after the publication of these Press Releases. There are key factors that led this stock to have it's run which I will discuss below
1 Float Rotation: This one should be obvious to anyone. The reason why I love small-cap stocks is mostly due to their high volatility. See you NEVER EVER see $FB or $APPL make a 1000% move in a trading week. Why? Simply because $FB along with $APPL have enough shares float to meet the demand. For example, let's say you bought $AAPL a year ago at $180 and sell it today at $172. Apple has done fantastic things over this past year, but it amazes me how people down this strategy. On little companies like $BPTH, you can literally make 100% of your money. This is why penny stocks are great. These volatile moves are what grows a small account, but you must choose the right angles. Forgive me for going on a rant. On the first Green Day, it traded nearly 50M shares. The Exact float for $BPTH was located in the Filings, which revealed roughly 1.7M shares are a float. Do you see the problem? Yes, $BPTH rotated it's float nearly 50 times. I'd admit I still am trying to trade Low Float stocks well. Their spread can be a pain in the ass, which makes it tough to get an execution. In addition the lower- the float the easier it can be manipulated. Does anyone remember $AWX?
2. Shorts: Let me say thank you Newbie Shorts. I hope you learned a valuable lesson. Without Shorts, we would have never seen this reach $70. Aggressive Shorts, typically Newbie Shorts don't understand the power of Low-Float stocks. Remember prices move first, price action is king. Yes, Shorts statically ate right, but don't short the first green day you dumb Fuck. Forgive ME for my language, but have patience too short the backside of the move like this guy who made nearly 90K. You only as best as your last trade. Every day is a mere reflection of your level of development. Again above I will post a recap, but for those who would like the Live footage leave a comment. It's raw footage with Level 2 revealing the massive squeeze.
3. Momentum Buyers and Dip Buyers: In addition, you have numerous time to catch a play like $BPTH. One of the ways is to catch a dip of key support areas, which will minimize your risk. Momentum Buyers along with Dip Buyers create no real lack of sellers create what Shorts dread. If your long in a squeeze, consider locking in profits. Also, indicators such as VWAP can play crucial importance for momentum buyers. As in the recap below, I noticed that $BPTH held VWAP numerous times. The times it held were ideally the time to buy as they went parabolic each time support held.
Once again we saw a lot of momentum after $BPTH ran. For example. $ALT ran once again, which I traded well. A recent Supernova is a past with an extreme low-float had no significant news, but I will not complain. As in the recap, I explain the reason's behind me buying $ALT into the close. Let's just say I bought the breakout and sold into strength. Unfortunately, $ALT did not hold it's gains, which it never does as the past would indicate that. Like all thee companies, they raised $14 Million through a registered offering.
This blog has a term of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.