Small-cap attack (Tuesday's watchlist)

Good morning,

The focus will be on swing trading small-caps. Occasional IWM and UVXY call and put options. Swing trading puts an emphasis on technical analysis followed by catalysts.

I like IWM calls headed into CPI Wednesday and PPI Thursday. As soon as interest rates start coming down small-caps are likely to outperform. I’m in the $210 IWM calls expiring April 19 at $1.53.

I’m also in LQMT stock. It’s consolidating at $.07 with range to $.17. Based on the catalysts I think a move above $.10 any day now which is likely to become the new base.

VERI stock is well on its way to $10 as predicted. It’s trending nicely at the 10-day EMA and has range to $20. There’s going to be a lot of stocks like VERI soon, which just up 320% in a month from $1.66 - $6.97 as of this morning.

The way this will work going forward is that I’ll highlight 3 small-caps I’m watching for the day. Then, from that list I will alert and buy whichever look best. The target is always 10-20% in 1-4 day and a 10% stop loss or less. If a stock jumps 10-20% the day it is alerted I take the win.

The journal is in the dashboard and will be updated as trades are opened and closed. Here’s today’s ideas.

MRAI stopped in the $3 range back in November and again in March and April. The trendline here in the $2.20’s continues to act as support with breakout potential to $4 or $5. What really stands out here is the CEO buying a boatload of stock recently. They say insiders sell for a lot of reasons, but only buy for one. Will that hold true here? The chart pattern sure looks like it. If $2.10 can’t hold then it’s wait and see where support shapes up, maybe $1.50’s for a future entry.

GRPN is my second idea for Tuesday. The company recently beat earnings but revenue was down year over year. The chart pattern is an oversold fish hook and has a history of nice whipsaws once selling starts. The trade plan here is to enter if $11 holds, not interested in riding it down to $10. Then look for the bounce to $13-$14. Should work better if the IWM gets going as this stock is held by a lot of institutions.

LICY rounds out today’s ideas. Clearly with volume lately and trading nicely above $1. Range is to $2 so upside is very big to downside below $1. Good news recently has the stock on the move and the trend has lasted long enough for me to think the technicals are solid here.

To get trade alerts moments before I buy and sell, like a text message, subscribe here, then download the RagingBull APP and enable Jason Bond Picks alerts.

My goal is to hit big wins quickly and move onto the next stock. If you like active swing trading, you’ll love this new format. I will use the Go NoGo algo across multiple time frames so intraday and daily to best time the entries I’ll be sending you. The goal is to catch fast predictable moves. Learn more.

Eat, sleep & trade.

Jason Bond

Questions or concerns about our products? Email [email protected] 

© Copyright 2022, RagingBull