End of Day Wrap Up 03/03/2021
Happy Wednesday everyone! Today was another good day for GameStop (GME) and Sos Ltd – ADR (SOS) as they continue reversing from their bottoms. I am still holding as they’ve been forming higher support levels as I’ve predicted over a week ago.
Why So Little Alerts About Penny Stocks Lately?
You’ll notice I have not been talking about penny stocks lately, and there’s a good reason for it. With us being in a bear market, the penny stocks are hurting badly, especially the OTC plays. I am holding all bottom plays that have bled out over the last month, and waiting for them to reverse back up. I mentioned to be careful with position size when in a bear market. When trading OTC, do NOT put a huge percentage of your portfolio in because they are very risky. No one should be going all in on any play during this time. This is the time to be picky about your stocks, not desperate. I would NEVER alert I added unless I truly believe it’s the bottom or getting close to being the bottom. If it’s a day trade, I make sure to make that VERY clear. I primarily swing, so I would never want to put any of you in a bad situation.
Today I Started Red and Ended Up Green
I am being strategic, and keeping my profits small. Small gains are better than losing money due to being greedy and trying to force plays. I understand many people were red today, however, I was up in all my accounts because all my red positions from the last month are now green. This is why it’s important to diversify your portfolio. My mid/large caps are outperforming my penny stocks at this point. Travel stocks (CCL, AAL, UAL, LUV, NCLH, HA, JBLU, LVS, TRV, RCL etc.) I mentioned from last month are outperforming the market right now, so I hope some of you saw that post. This is why it’s important to buy red to set up for the future months.
Penny Stock Recommendations
Many ask what I’d recommend under $4, but I want to be completely transparent with you. Right now is simply not the time for penny stocks unless there are upcoming catalysts. If I find something good, I’ll be sure to alert. It’s too risky being in a bear market. It’s not the time to add on a downtrend. This is the time to either hold and wait for a clear bottom, or cut losses and re-enter later. For right now, the only one I see reversing upwards is HCMC. ONTX will be ready over the coming weeks, and since there are upcoming catalysts, this is one I will be accumulating.
GameStop Corp (GME)
GameStop Corp (GME) moved exactly how I expected, which I mentioned in my previous blog posts. Like I said last week, I only need GME to hold above $120 this week, so closing at $125 after hours is fantastic as we went from a consolidation between $115-120 to $120-125 levels. We may need to trigger SSR sometime this week so we can get another good run up, so we shall see. Today, GME closed at $124.18, so tomorrow I’ll be looking to add between $111-112 and $99-100 if shorts dare to come out and play.
As I’ve mentioned previously, I am holding my positions until March 19-25th at the least. I’m waiting for some good PR from GameStop to launch this forward to gap up past $450. Like I mentioned in my post yesterday, if the brokerages never halted the stock in January, and disallowed buying, some of the CEOs have admitted that GameStop would’ve broke $1000 easily. I agree with this because I watched the manipulation live, and was locked out of my accounts back in January. This time, I’m ready for the ride up. The longer we hold and allow GME to grow steady upwards, the worse it will be for the shorts who are trying to figure out what their next moves will be as we approach GameStop’s earnings.
Healthier Choices Management Corp (HCMC)
Healthier Choices Management Corp (HCMC) did exactly what I expected, and those who bought too high cut their losses today as the market was bleeding, so HCMC was finally able to move back up, and it ran hard with 28.3B in volume, pushing it from a low of day of $0.0009 up to $0.0021. I will be watching for a continuation back up past $0.006 for a long swing.
Ocugen, Inc (OCGN)
Ocugen, Inc (OCGN) rallied after Bharat Biotech released results of the first interim analysis of a Phase 3 study of Covaxin, showing an efficacy of 81%. Following such results, the price target was raised from $4/share to $15/share, and OCGN hit a high of day of $14.05, closing at $10.94, which is well below $15. I will wait for the volume to drop before I add more in the coming weeks.
Sos Ltd – ADR (SOS)
SOS has been doing great over the last week, and it still has a long way to go before it reverses back up to the $10-12 range after that hit piece came out from Hindenburg Research last week. I am still swinging long until it hits my price target, as there are $30 strike price for March 19th.
What to Watch for Thursday 03/04/2021
I will continue watching SOS, GME, TSLA, HCMC, ONTX, IDXG, and GHSI. I am being VERY selective, and these are the stocks treating me well right now. Remember, in a bear market, we aren’t looking for oversold stocks anymore (since it’s hard to find the bottom when people are panic selling all across the board). Right now is not the time to gamble away your portfolio with risky penny stocks with no upcoming catalysts. We need to trade with the momentum. I know many want to avoid GameStop, but I think that’s a bad call because it’s the only one moving in an upward trend over the last few weeks, even with its red days. I am trading what’s in front of me, and what’s in front of me is a clear chart that’s showing bullish momentum with a steady climb upwards because LOYAL GameStop investors are holding and not selling. Remember, many are STILL holding from the high $400s, and they have NO interest in selling for a loss.
How to Utilize My Positions List Below
Many ask how to utilize my top 10 green/red position lists below. Oftentimes, I will exit my green swing positions if it looks like there will be no continuation. My decision varies depending on what my cost price is. It’s all about managing risks, and if it looks like I’ll be in a position where, I’ll be down, I won’t hold, and will choose to reposition myself by accumulating dips on red days over a period of time until it’s ready for the next run.
To Buy On Green Days or Not
I will add to my green positions on green days only if it’s moving in the direction I like and forming higher lows, and showing a bullish chart. I make sure to scale when adding, especially on green days, because it can go south quickly.
To Buy on Red Days or Not
I will almost always accumulate my red positions because they usually move back up, unless it’s a clear pump and dump, which I will never swing because it’s too risky. If there are sharp spikes and a quick drop down, then it’s a clear pump and dump. If the chart slowly drops in price throughout the day, then that’s usually people taking profits. To make the call on re-entering or accumulating, I look at the 5D, 10D, 30D, 90D, 180D charts and I monitor the volume. I love adding when there’s little to no volume when setting up long swings.
Top 10 Green Positions (03/03/21):
Top 5 Red Positions (03/03/21):
I monitor Market Movers every single day to scan for new setups. I mainly look for positions with unusual volume that are at the bottom, ready for a reversal back up, or if they remain green, I look for a bullish chart for a continuation.
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