These Two Stocks Under $2 are the Best Way to Profit from Volatility
Any approach to investing should be applicable to any stock, at any price.
Just like the strategy that I showed you yesterday.
Looking for the shift in momentum, technical trends, and volume will always show you which stocks are about to experience a sudden, steep spike.
And as traders, we can make money whether that spike goes up or down.
As promised, today I’m going to show you two low-dollar stocks that fulfill yesterday’s criteria… and how you can profit from them.
I prefer to use this strategy on smaller stocks because of their larger magnitude towards the upside.
It doesn’t take much for a $1 stock to double, or triple your investment… and it certainly doesn’t take much for a $0.10 stock to do so either.
These two stocks are “in play,” here’s the exact price to buy them…
But they’ve downsized their business and today they focus solely on private jets.
Take a look at the stock’s chart:
Thus fulfilling the first indicator we discussed yesterday.
We saw shares bouncing up and down within its 20- and 50-day moving averages for about a month.
Then, the technical trendlines started moving higher… but they were still bouncing up and down within a normal distribution from April to June.
This fulfills our second sign.
Finally, the volume spiked in July, fulfilling our third criteria, and causing shares to explode vertically up.
But now volume is on the decline and we’re going to see a pullback.
Where does the stock go from here?
Well, I’d look to buy shares at $1.05 and target a move to $1.40.
But around late-April, we saw a bullish crossover in the technical trendlines.
Two months later, we saw a major spike in volume… causing shares to rocket up to the $0.13 range.
Like I mentioned yesterday, after the “crescendo volume” you see a sharp decline in the stock, and we saw that in June with HDVY.
But shares were still trading within a normal distribution and another volume surge caused prices to spike towards the $0.19 level.
Now that the crescendo volume has happened, it’s too late to get into this stock right now.
We have to wait for it to drop a bit.
I recommend that you wait until HDVY drops down to $0.11 – a 42% decline.
But this could change if the trend continues to move higher and higher.
We’ll revisit these stocks if there are any major developments.
And next week, I’m also going to show you even more ways to play these low-dollar stocks.
I love using effective trading strategies on low-dollar stocks because if a $0.10 stock gains another dime, you’ve already recorded a 100% profit.
And like I mentioned yesterday, Tom Gentile has agreed to share his proprietary BRUTUS system with you.
This system locates all the different volatility events we’ve been discussing.
In this volatile, post-pandemic market we’ve seen as much as $11 million up for grabs every single day because of these events.
Click here now to see how BRUTUS can help you profit from volatility…
I’ll also be going over multiple other ways you can play volatile stocks.
Until next time,
Chris Johnson
Night Trader
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July 21 2021