fbpx

I hope you all had a restful weekend because the volatility and opportunity are here to stay, by the looks of it!

I want to share a new stock that I have placed on my Biotech Breakout Weekly Watch List. However, before I do, I want to discuss something important.

Last week the overall market traded lower, and fear entered the market for the first time in a while.

Not only that, but the XBI closed the week as one of the weakest, finishing down 6.21% on the week.

Last week I mentioned how I would have liked to have seen the XBI hold over $120 support and firm up.

Of course, that never happened, and instead, we saw a break below support and momentum build below that level.

With momentum in the sector to the downside currently, as a biotech bull, I need to be extra cautious when playing breakouts and longs. 

The reason is that the overall trend is currently to the downside, so selectiveness, patience, and confirmation are vital.

During periods of heightened volatility and possible corrections in the market, it is essential to see the bigger picture as the market’s overall trend might affect an individual stock.

For example, it might be unlikely that a biotech stock without news breaks out of its range to the upside, at the same time that the XBI is trending lower on the day and holding below support.

In the short term, I am looking for the XBI to bounce off its weekly 200d MA line of around $104. Ideally, it begins to trade sideways and find some stability.

If I look back six years, the XBI has not fallen below the 200 weekly MA line for more than a few weeks before rallying higher and starting a new uptrend. That’s what I would like to see here.

Even in this challenging environment, I am still looking for reversals, breakouts, and monitoring news in individual biotech companies.

This week, one new stock on my watch list is Xeris Biopharma Holdings (XERS).

 

According to Yahoo, XERS develops and commercializes therapies for patient populations in endocrinology, neurology, and gastroenterology. It markets Gvoke, ready-to-use liquid glucagon for treating severe hypoglycemia, and Keveyis, a treatment for primary periodic paralysis.

 

Market Cap: 249.39M

Float: 124M

Short Interest: 3.5%

 

XERS, according to Finviz, has an average target price set by analysts covering the stock of $6.25, which is considerably higher than where the stock is currently trading.

Recent News:

  • November 10, 2021 

Xeris Biopharma Reports Third Quarter 2021 Financial Results and Other Highlights    

Catalyst Dates:

  • PDUFA date January 1, 2022. RECORLEV (levoketoconazole) Endogenous Cushing’s syndrome. 

     

As long as the stock can continue to base over $1.80 In the short term, I will continue to check in on it.

If the stock can confirm a higher low on the daily chart or experience a high volume day and base over the 20 and 50d MA, I might look to get long and target $2.60 – $3 as a target zone.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

Safe to say, there were a lot more smiling and laughing bulls after the market finished green on the day yesterday.

I know my members and I had a great time yesterday in one of my chatrooms. Shoutout to my members because the ideas and banter were fantastic yesterday. Let’s keep it up, Gang.

Not only was the overall market positive on the day, but I noticed a lot more opportunities in small caps and penny stocks!

I noticed that the momentum and follow through to the upside in certain stocks types were superior to in previous sessions.

I spotted one of my favorite setups yesterday, a true bread and butter setup of mine, in a penny stock.

Of course, I alerted this idea and setup to my members early on in the day. 

I wrote about the idea on one of my Watch Lists and shared it with members yesterday at 11.30 am.

Toughpoint Group Holdings, Inc. (TGHI)

TGHI trades on the OTC markets and has been a member of the OTCQB since 2019.

According to otcmarkets.com, TGHI is a media and digital technology holding Company. The Company invests primarily in sports, entertainment, and related technologies that bring fans closer to celebrities.

Market Cap: 12M

Float: 84M

Authorized Shares: 750M

The Setup

TGHI had developed a fantastic triangle pattern on the daily chart. It formed an ascending triangle, with the breakout level being the previous pivot high of $0.027.

At the time, I also loved the volume increase in the stock. The significant rise in volume in the stock led me to believe that this stock might have enough juice to test the $0.04 area.

The stock also broke above the previous pivot high of $0.027 and, importantly, held above this crucial level, with rising volume. 

For the above reasons, the stock was on extremely close watch because it set up a consolidation breakout on the daily chart.

The intraday chart is a consolidation breakout pattern setup as well. So not only did the daily chart have a breakout pattern, but the intraday chart was also set up for a breakout and provided a fantastic entry opportunity.

The charts aligned well.

I was looking for an entry opportunity and planned to exit in mid to high $0.03s.

I got long TGHI when the intraday breakout was confirmed, with the range break and increased volume (highlighted in yellow).

I got long at $0.0297 at 2.50 pm, just as the stock was breaking out of the intraday consolidation.

I sold my long position at 3.20 pm, at $0.0376.

I posted a Making The Connections video yesterday for this setup and trade. The videos posted yesterday shows me, in detail, sharing my thoughts and plan for TGHI

It’s available to you to view at no cost, and all you have to do is go to the member’s dash, and you will be able to find both an entry and exit video that I posted for this trade.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.

I like to seek shelter on a day like yesterday when the overall market is trading lower and a sea of red dominates markets!

The SPY finished the day down 1.11% and closed the day below the 50d MA. The 5d MA has also begun to curl lower, which signals a short-term downtrend and momentum shift.

So what do I mean by seeking shelter, Gang?

I mean that during major market selloffs, like yesterday, I like to focus on stocks that are not correlated or affected by the overall market.

I spoke about this topic in detail to my members yesterday, because, as you might know, I love to play breakout and reversals.

However, it is not always wise to try and pick the bottom or play breakouts during market weakness because the odds might be stacked against you.

So, as I mentioned to my members yesterday, I will focus on going long stocks that are either not correlated to the overall market or names that might benefit from the weakness or current theme in the market.

Two stocks grabbed my attention yesterday, both of which seem to be unaffected by the weakness in the market.

Not only did I speak about both stocks live in my chatroom yesterday, but they were also both included on my Mid Day Watchlist, which my members have access to.

Hop-ON Inc (HPNN)

According to otcmarkets.com, HPNN is a US-based international leader in developing and manufacturing electronics, distributed software, and telecommunications hardware and services, capitalizing on its secured essential license agreements for mobile and computing technologies.

Several things stand out to me from this chart.

First of all, I love how the stock has coiled up in a tight consolidation, and all key moving averages on the chart have also coiled up. This leads me to believe that a breakout might be possible sooner rather than later.

Secondly, I like how the stock was not affected by the general market selloff yesterday. HPNN closed the day up 7.14%, while the overall market was, of course, negative on the day.

In the future, I am watching to see if the stock can base over yesterday’s close, $0.0045, for a possible long entry.

If the stock can base over that price and breakout, I will target $0.005 – $0.0055 as a possible target.

My stop would be placed around the 200d MA.

Majic Wheels Corp. (MJWL)

MJWL, per otcmarkets.com, is positioning itself as a player in the disruptive industries of fintech and software development. 

After I posted my plan for MJWL in my Mid-Day Watch List yesterday, the stock pulled back slightly into the close, making it a bit more exciting and challenging now.

Initially, I wanted to see the stock hold over $0.12 to get long, with a target area of $0.15.

However, the pullback did not provide me that opportunity.

I the stock can reclaim $0.12 today or in the near future, I will look to get long over $0.12 and target $0.15.

The stock has coiled nicely between the 20 and 50d MA, so as long as it continues to hold these prices, I will look to continue to monitor the stock for a breakout over $0.12.

Author: Jeff Williams

Jeff Williams is a full-time day trader with over 15 years experience. Thousands of entry-level and experienced traders alike – day-traders and swing-trade small cap stock traders – credit Jeff with guiding them to turning small accounts into big accounts.

Jeff’s "Small Account Challenge" shows people how to transform accounts from a few thousand dollars into $25k, $50k or even $100k.