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Today was all about the NFT.

What’s that you ask?

It stands for non-fungible token. Which loosely translated means it’s a digital asset (token) that is unique and can’t be replaced with something else (non-fungible).

It’s a way to show that someone has ownership of a unique virtual item, such as online pictures or videos.

Think about a piece of artwork. There’s an original that is worth millions of dollars. Then there are millions of copies, or prints, that you can buy in Target for twenty bucks and hang on your wall.

An NFT is like the original…but for digital artwork. It’s like a collector’s piece that can appreciate in value…and it’s all the rage right now.

Cinedigm Digital Cinema (CIDM)

I’ll start with Cinedigm Digital Cinema (CIDM) as the stock is gapped up off of the corporate earnings report.

Of particular note: the company announced the first NFT-based film releases under the Fandor Selects™ label, taking it one step further into the realm of the NFT.

The stock is up over 20%, but currently trading below the opening price of 1.34.

I’ll be keeping an eye on how it holds up into the close.

Takung Art (TKAT)

Next up, Takung Art (TKAT) which operates an online electronic platform for offering and trading artwork allowing artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors.

Back in mid March, following rumors that TKAT was pursuing NFT capabilities on its existing platform, the stock jumped from the $4 level to a high of $74.11 a week later.

This was right in the beginning of the all things NFT craze.

Since then the stock has come way down to under $7 as of yesterday…but today TKAT is getting some love alongside other NFT names…

…up over 27%, currently trading in the upper 8s.

If TKAT gets a short squeeze move like back in March, look out.

Liquid Media Group (YVR)

And this brings me to Liquid Media Group (YVR), a stock I have on my member’s watchlist today.

As a business solutions company empowering independent intellectual property (IP) creators to package, finance, deliver and monetize their professional video IP globally…YVR is focused on taking steps to stay at the forefront of technology, NFT being a part of that…

And this has YVR surging, up over 50% today.

Now there isn’t exactly company specific news on any of these except for CIDM which just reported corporate earnings…

But when a hot topic like NFT gets moving, it tends to have a spillover effect.

Other stocks to watch: OCG, FNKO, HOFV, ZKIN

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.

It was an interesting morning in chat today. It seemed like every good looking stock on my scanners ended up turning around after the initial move up.

I call that a false start and this is why I usually don’t enter trades in the first 15 minutes of the day. Not that I never do, I just really have to like the setup in order to pull the trigger that early.

I use the mornings in a little different way than many traders out there…

With built up demand over the night, I’m usually selling my overnight trades on the morning gap ups and simply waiting for things to settle out a bit before jumping into new trades.

To show you what I mean, I’ve put together some of the stocks that may have tricked some unlucky traders this morning…

Minim Inc. (MINM)

The stock gapped up to 5.02 this morning from a close of 4 yesterday. And right out of the gate it hit a high of 5.28.

It was looking good to any trader caught up in the excitement.

The problem…

It was a false start as the MINM traded off hitting a low of 4.12 within the first hour of trading.

Take a look at this chart…I circled a top wick on today’s candle. This shows the area that potential tricked traders in with excitement of the move up.

But as you can see the stock ultimately reversed and traded lower in what ended up being an ugly candle for traders.

Yunhong CTI Ltd. (CTIB)

CTIB started the excitement early, up close to 4 in premarket.

When the market opened the stock was trading at 2.99 on a gap from yesterday’s close at 2.61. With continued interest after the open, it made a run to a high of 3.20 on the day.

Does the chart look familiar?

After making an initial move, CTIB traded off in similar fashion to MINM, making for a big top wick on the daily candle today.

Oxbridge Re Holdings (OXBR)

I saw more of the same in OXBR. Trading at 5.45 in premarket on news of Custodian Ventures taking out a 9.9% stake in the company, the stock opened at 4.36 on a gap up from 3.35.

But again, OXBR failed to hold the move and cratered after the morning run.

Taking a Step Back

Listen, by no means is there only one way to stay out of a mess like this, nor will any strategy work every time. Not to mention…there is no one size fits all strategy.

I personally know a lot of traders who focus on trading the first 15 minutes of the trading day…every day.

It’s their bread and butter.

I’m not one of them.

So for me there’s a simple solution. Don’t trade the first 15 minutes of the trading day.

What? Don’t trade? I must be joking right?

I can assure you this is no joke. And again, I’m not telling you not to trade the first 15 minutes.

I am simply explaining one way in which I dodge some of these “false start” moves in the morning.

Something these tend to have in common…the first 15 minutes of trading after the open is crazy, to say the least.

With the markets closed overnight, buy and sell orders build up creating what’s called an imbalance at the opening bell.

This imbalance can create some messy moves and cause other traders to try and catch quick moves in and out of a stock.

Point being…the first 15 minutes of the day is not always the best indication of how a stock is going to trade the rest of the day.

For this reason, I prefer to let things settle down a little before getting into any new trade setups.

That doesn’t mean I never trade at this time.

In fact one of my favorite times to sell is during the first 15 minutes of the day. In this case I am taking advantage of those same imbalances. But instead of buying, I am using them to get out of my overnight holds on any built up demand.

Here’s what I am talking about…

I marked the first 15 minutes of trading in a blue rectangle on the chart for each of the stocks I talked about today. These are 5 minute intraday charts, therefore I’ve marked the first 3 candles on each chart.

It’s pretty easy to see when you look at it this way.

After the first 15 minutes of trading, neither MINM nor CTIB make a move anywhere near the high of that range.

To some extent they would have potentially been pretty clear shorts at this point, but either way there is no reason I see to be buying on these charts.

In which case, if I practiced patience, I could sidestep an ugly selloff in a stock that could have looked like a good buy just 10 minutes before. Of course nothing is guaranteed and it can work both ways.

Now CTIB makes it a little trickier…and shows that nothing is perfect which is why I am glad I have this chart to share as well.

As you can see, CTIB didn’t immediately move down after the first 15 minutes like the other two stocks above.

In fact, the first candle after is an up candle…yet it’s still below the range.

The hard part with CTIB is that it does trade up to the top of the range and even gets a couple cents above it…would this have been a buy signal?

For some it may have…and that clearly would have sucked.

But that brings up another lesson…

When trading, I try to use as much available information as possible.

In the case of CTIB, as with any of my trades, I would have looked for overhead resistance. You see, I don’t like to buy right below resistance. I want to see stock get above it first.

And looking at premarket trading in CTIB, you can see the stock hit 3.25 before going down into the open.

If I am looking at this chart, I would likely want to see the stock clear 3.25 before making a move on it. The fact that CTIB makes a double top just below 3.25 actually lends to the short side thesis on this chart.

Granted it’s not as easy to see all of this when trading live “in the moment.” But the more practice I get the better I am at noticing the little things that can help keep me out of trouble.

It’s just one way I approach the markets, especially in the morning…there is a lot of information right in front of me…it’s in the candles, premarket range, volume, etc.

The first 15 minutes can be a dangerous time for many, but for others it’s their bread and butter….it’s up to me to make that decision for myself, same as you.

 

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.

While last weekend’s Virgin Galactic (SPCE) flight was the spacecraft’s twenty-second test flight, it was the first with a full crew, which included Sir Richard Branson himself…

 

Beating Blue Origin’s Jeff Bezos who will be taking his own flight next week.

No sooner did Branson get back to earth than the company filed for the sale of $500 million in new shares…

And the stock came back to earth as well…

But it’s far from over here…

In fact, this is just the beginning really.

 

Virgin Galactic Holdings, Inc. (SPCE)

I don’t need to tell you what this company does. They take people to space…er, I mean they are working towards it.

With Virgin’s first crew-manned ship going to the edge of space on a test flight this past Sunday…

Investors were all in as Virgin Galactic’s (SPCE) shares moved to over $57 a share from just under $15 back in May.

It turns out going to space isn’t cheap. And since SPCE still hasn’t taken any paying customers on trips, the company needs more money to make that dream a reality.

Quick to capitalize on the jump in price, Virgin announced a $500 million stock offering the day after Branson’s epic journey.

For investors, offerings like this are dilutive, not uncommon. After all, did we really expect them to get there without raising more capital?

Investors in SPCE are futurists to an extent and it’s a dream that’s becoming a reality.

This is all part of the process to make it there. I don’t personally see this as a long term problem.

 

Is there real value in SPCE?

Who can really say that? To be honest though, I’m not sure it’s only about that right now.

This has always been about the future and beyond. The value of “space” itself is huge, there’s no doubt about that.

From satellites to tourism…to the potential for mining and even colonization, the potential is almost unfathomable to say the least. Well, except for Elon…it’s clear to him of course.

Needless to say everything “space” is far from over… it’s still new and exciting, so I don’t see an end to SPCE right here by any means.

In fact, it’s pretty much par for the course to see a stock plunge after announcing a new stock offering.

After announcing the stock offering…SPCE went from $56 in the pre-market Monday morning to a low of $37.01 this morning.

But as a trader, all I care about is what happens next…and my favorite thing to do is look at the chart for clues.

After a flag pattern breakout in late June, SPCE hit a high of $57.51 (not quite getting back to the previous high of $62.80).

This was leading into the epic crew-manned flight with Branson himself aboard.

But then, as noted, the stock stalled out and took a big hit over the past two days.

 

Now looking at the daily chart above, SPCE hit support at this low this morning…right in the range of where the stock previously broke out of the flag pattern.

If this holds, I’ll be watching for a ride back to highs.

Another very possible scenario I’ll be watching is if the stock stays weak on the heels of the offering. This could be an opportunity to shake out the weak hands.

If this happens, I’ll be watching the 50 day moving average for support…looking for a bounce from there.

The 50 day is currently at 32.41…and the 200 day is just below at 30.09.

One last note on the “future” of SPCE

Analysts expect the commercial flights to begin in the first half of 2022, as the company hopes to complete another two suborbital test flights by fall 2021.

Virgin Galactic (SPCE) said on Monday that it was planning to eventually have around 400 flights a year carrying six passengers each.

And I’m pretty sure the current $250k price tag will likely increase as Virgin works out the true costs.

There are a number of estimates from $300-500k, in which case if they hit the 400 flights with 6 passengers each…well you do the math.

All speculation at this point of course…and so many things can go wrong, or right. That’s why investors in SPCE tend to love the idea of “space” as much as the business potential.

Some of them just want to be a part of the future and invest in something so new and exciting, a childhood dream even.

For trading purposes, this stock isn’t done making moves. I’ll be watching for support at the 50 day moving average if it doesn’t hold today’s low.

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.