Our Next Moves After Nasdaq’s Drop-off

Dear — Jeff Bishop here, The Nasdaq got knocked down the past couple days, but it's never KO. It may not be long before we see money rotating back into technology and FANGs.  We're already seeing tech stocks catch a bid this morning — who really knows, but we don't think traders should get overly excited about the gap up just yet. That said, we have to be on the lookout for what the market is doing right now— currently small caps, international stocks, as well as stocks that support the reopening of the economy, all look strong.  In today's issue of All-Access, we'll review yesterday's biggest mover and share 3 stocks that could follow its footsteps today.  Don't Forget! Kyle Dennis will be live again from the opening to closing bell — make sure you're in early because Kyle will show you how he trades the open. Not only that, but he'll be trading and revealing some of his best tools and techniques. Yesterday's action did not disappoint.  There were many big movers with setups both long and short, including NIO, BYND, and REV.  However, in our opinion, one of the most interesting stocks to trade was GTEC.  Yesterday before the open, Greenland Technology Holding Corp announced they would begin offering an integrated electric drivetrain system to its existing clients to support the manufacturing of electric forklifts using lithium batteries.  It seems that words like "electric vehicle" and "lithium batteries" in a press release are all traders need to jump into a stock these days.  Anyway, GTEC had 2.1 million shares available for trading coming into the day, which puts it into the low float category. This small cap went from $2 to $10 and then basically round-tripped, closing at $5.16 on the day. Here's how it all went down: This stock wasn't so clean though... At around 10:21 am, the chart looked very much like it was about to break down. As soon as enough shorts got in, the stock immediately reversed and flew higher.   The point here is that stocks might possess certain characteristics or traits, very much like people do. Making a mental note of such traits can help you trade the stock better.  For example: if you all identified the short trap, you could have categorized GTEC as "sloppy" and would have known not to put so much confidence into the signals later in the day.  This simple hack would have helped a couple of times as the day progressed: ...at 10:33am the breakout "stuffed" and GTEC looked like it was done for good, only to make new highs 30 minutes later… …after getting rejected at $10 the stock rolled over but never showed the big red volume candles— a typical sign of topping action. The key idea here is to start thinking about nuances of the stock we are watching:  Is it trending or chopping, is it a slow grinder or a fast runner, is it erratic or clean?  Such self-talk can add finesse to our game plans and executions. If we develop this habit, it will take our trading to the next level. Speaking of, Jason Bond nailed GTEC yesterday. He may not have taken advantage of the full ride, but he captured a solid $1,500 profit— or just over 10%* — thanks to his textbook fishhook pattern he explains here.  Moves like GTEC always raise a lot of questions (and even more eyebrows).  How does something go from $2 to $10 in a matter of hours? Can the company's valuation change that much and that quickly? How do I buy something already up 100%, isn't this pure speculation? These are all very solid points to raise, but normally they all come later… The first and biggest question on everyone's mind after a day like this is: Which one is next and how do I not miss it? And the answer is— we don't really pretend to know! Even less so would we ever encourage buying a stock because you feel the fear of missing out (FOMO).  We can't see the future, but we do note bits and pieces here and there and make our judgement.  Here's the theme we defined in All-Access just a few days ago: We didn't mention GTEC in that letter, although we did hint on APVO— check the chart and see for yourself how that one worked out. What's more important though is the general market environment that we recognized. Movers like this don't just come out of nowhere— they're always the result of outsized public greed/risk appetite on the long side combined with carelessness and fat-fingering on the short.  In our view, this theme is yet to exhaust itself and there will be more runners in the days to come.  We don't know what name will go, but much like APVO, we're certain of a few we'll watch closely. Here they are: Capitala Finance Corp (CPTA): The beaten down financial company has been a notable grinder over the past few days after a good earnings report The stock, which has a float of just 2.5M is holding very cleanly above the psychological level at $10. We want to see the volume come it and be long above $10 for a move into $17 area and possibly as high as $30 Digirad Corp (DRAD): This diversified holding company recently made headlines on the announcement it had sold its DMS Health unit for $18.5M DRAD is one of our favorite setups— it's been consolidating cleanly and had a nearly 50 million shares traded on the day of the announcement vs 4.3M float We want to see more volume come in and get long above $3.2. If resistance at $3.6 is cleared, the next area is $4.2, and after that— sky's the limit Delcath Systems (DCTH): An oncology company focused on treatments for liver cancers is a known diluter but has been showing notable strength lately The company is bull flagging on the daily chart and with just a 3.6 million float the stock may get significant traction if it were to breakout higher Ideally, we want to see a news catalyst push it above $13 which would be our line in the sand. If that happens— the chart is clear sky till $30.   To learn how Jason Bond is riding stocks with some of the biggest momentum in real-time, follow his trades live here in Jason Bond Picks.  There's no hotter sector in the market right now than EV technology and cars.  As we mentioned in Strategy Corner, it only took a single press release with mention of "electric vehicle" and "lithium batteries" for traders to skyrocket the price of GTEC yesterday.  If we want to get a piece of the action, it means we have to stay abreast of what's happening in the EV world right now.  Which is why we want to share this recent conversation between Jeff Bishop, Hitha Herzog, and their guests from Zero EV.  Watch  It's Momentum Traders' Galore Right Now By Jason Bond of Jason Bond Picks Finding Trades In Sector Rotation By Jeff Williams of Penny Pro This Is What Market Rotation Means For Your Trades By Nathan Bear of Weekly Money Multiplier [Watchlist] 3 Hot Stocks To Watch From The Dark Pools By Ben Sturgill of Daily Profit Machine  *Results presented are not typical and may vary from person to person. 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