Today in my deep dive on The Long and Short of It, we covered the stocks breaking below their 200-day moving averages.
And not so surprisingly, that has become quite a long list.
Just take a look at all these players…
Even the big, mighty, and all-powerful Apple Inc. (AAPL) was caught joining the ranks this time around.
Their latest product announcements, although impressive from a performance standpoint, may not save them from dropping below the $150 level.
That’s due in part to their largest supplier, Foxconn, halting operations in Shenzhen temporarily as China scrambles to prevent further COVID spread during the latest outbreak.
Paired with the overall drops we’ve seen in the tech sector as of late, it isn’t surprising that it broke the 200-day seal.
Looking at today’s macro-to-micro view, we got things started by checking out various sectors from 5,000-feet.
Something that instantly stood out to me was how quickly the energy sector rose in these ranks.
That’s with a total of 10 stocks breaking below their 200-day moving averages yesterday.
I mean, energy was the sector we all were going crazy for just a week ago.
That highlights the overall confusion of this market – something we see finding its path through the technical indicators.
Now, don’t be fooled – this chart is still in many ways a bear market warning…
But we’re seeing a good trend in utilities and health care beginning to form with many trickling into those sectors.
That could give you a good starting place when it comes to finding trades.
And the next step is to look a bit deeper at some individual stocks in each of these sectors.
One in particular that you asked me in the chat to cover was Nokia Oyj (NOK).
And it was a perfect example of a stock under $10 that I’ve got my eye on right now.
Just looking at these technicals, I can tell you right off the bat that I’d put money on NOK closing within $0.03 to $0.05 of the $5 mark on or before Friday.
All that put open interest is sitting right around $5.
And while I wanted to short NOK this morning when I woke up, it just hasn’t quite made it into the list I need it to be on to pull the trigger.
I recently closed out NOK March 18, 2022 $6 Puts with Penny Nation last week for a total gain of 114% in 36 days.
Yet another win added to our recent streak!
Looking on though my tracker, we actually haven’t closed a single loser in March so far.
Just take a look at some of our trades from this month…
- FCEL April 14, 2022 $6 Call – 38.89% gain – 4 days
- UEC April 14, 2022 $4.50 Call – 85.19% gain – 4 days
- Teucrium Wheat (WEAT) – 25.6% gain – 8 days
- RIG March 18, 2022 $3.50 Call – 200% – 28 days
- ICLN April 14, 2022 $20 Put – 74.7% – 3 days *
- NOK March 18, 2022 $6 Put – 114% – 36 days
* Note: Penny Nation was only instructed to sell 50% of their positions in the ICLN trade listed above.
That means Penny Nation had the opportunity to collect an average profit of 83.5% since March 1 using our technical indicators to guide the way in our morning F.A.S.T SCAN sessions.
If you’d like more info on joining our private trading community, click here right now.
We’d love to have you aboard for the ride!
And finally, I’d like to show you my “Stocks under $10 Most Active Options” watchlist from yesterday…
Even as investors drifted out of several stocks in the low-dollar market this week, there is still more than plenty of options volume.
I’m not particularly bullish on many car companies at this current moment, but Mullen Automotive Inc. (MULN) – which topped this list – is making some interesting moves.
Given that it is still under $2, I don’t believe many institutional investors will be rushing in anytime soon.
With that said, their recent partnership announcements are showing signs of promise as they look to bring a new EV crossover to market.
Stay tuned for more on that and other stocks tomorrow.
Founder, Penny Hawk
March 15 2022