We are seeing a surge in COVID cases daily…
And with that, a massive increase in the need for reliable testing.
Waiting 3 days to 1 week is just nerve racking.
In the meantime you need to quarantine because you simply don’t have any answers…
Are you sick or not? Have I passed it on to loved ones already? How many people have you been in contact with?
The longer the wait the more stressful the toll of being stuck waiting with no answers.
That’s why I’ve had my eye on TPT Global Tech (TPTW) for a while now.
They created a point-of-care test with quick turnaround times… and cost savings.
I’ve been playing TPTW for months now… the company continues to make moves in order to take advantage of investor appetite for anything coronavirus related…
Let me show you how I’ve been finding great setups with the coronavirus catalyst behind this stock…
TPT Global Tech is basically an umbrella company for many tech projects from 5G to “the cloud” and they recently joined the coronavirus world with both a telemed development, a testing pod, ppe supplies, and a quick scan sanitation pod.
They are in the process of expanding the TPT MedTech “QuikLAB” throughout the country recently inking a deal with Meredith and Boo in Miami to help sell their “QuikLAB” pods.
Now I’ve had my eye on this for a while now…
And here’s how I use a catalyst such as the coronavirus to look for trade setups…
The catalyst adds demand and interest to the stock but I don’t simply buy on the “story.”
Here’s what I saw when I took this trade on February 25. At this point they were more focused on other tech such as 5G…
In this chart I was watching the nice stair step pattern up throughout the day on increasing volume…
Coming into the close, the stock broke above the swing high on the daily chart with a nice spike in volume.
I jumped in and it was moving fast so I pulled off an $1,100 profit in about 10-15 minutes and let the chart set back up for a second play.
I got the second entry as TPTW broke out of the ascending triangle… and held it until the next morning…
It made a little move up, but I wasn’t getting the follow through I had expected so I took the trade off banking another $550.
It’s important to know what you are looking for… and if you don’t see it, get out. Go find another trade.
TPTW got even more interesting at the end of April when they announced the launch of a new Medical Technology and Supply Division “TPT MedTech LLC” which will focus on Medical Software as a Service (SaaS) products and PPE supply products.
Part of that development was the launch of an e-commerce medical supply website www.tptmedtech.com for retail customers to access the company’s PPE products directly.
Now take a look at the trade setup in the chart below…
This trade popped up on my radar right around that announcement.
Volume comes in as the stock breaks up to form a flag pattern on April 24… I jumped in towards the end of the day when it broke out of the flag on increasing volume.
I took advantage of the build up in demand by holding this over the weekend… and early Monday morning I’m grabbing my 31% gain in TPTW from the last bit of momentum carrying through.
TPTW fell out of favor for a while after this, but like a good penny stock… they weren’t going to let the opportunity to ride this catalyst get away from them…
And in an effort to keep themselves in the news… on June 5, they announced the acquisition of a majority stake in San Diego based manufacturing company The Fitness Container (dba “Aire Fitness” www.airefitness.com).
Using The Fitness Container’s fitness pods, TPT MedTech then began developing the mobile testing “QuikLAB.”
Now look at the chart below…
You can see the big spike on the “QuikLAB” news. After which TPTW trades in a triangle pattern.
Now I’m watching this and when demand comes in and pushes the stock out of the triangle on higher volume, I’m jumping on this trade.
I took a profit off pretty quick but it wasn’t over yet…
With COVID testing taking off, they are getting more interest and I got another entry just last Friday…
After the move up from the triangle breakout, the stock consolidated for a few days and spiked up again… this is when I jumped in.
As you can see I am not trading just based on the news… that would be going in blind.
Knowing the news is why I have my eyes on this in the first place… it keeps me alert to the potential.
But I am still waiting for the right setups based on my personal trading strategy.
And keep your eyes on TPTW, they are keen on playing the excitement around coronavirus stocks as this just came out yesterday…
TPTW entered into an agreement with Miami-based Meredith and Boo to oversee the sales and operation for TPT MedTech “QuikLab” deployment in the Miami-Dade county area.
It’s not performing well today, so I’ll just be patient and wait for my setup…
As you know I focus on penny stocks and small caps…
Not because I have to though.
My strategy is based on the principles of supply and demand so it can be used anywhere in any market.
I do it because my focus is on teaching others how to grow small accounts. And I’ve found that works best when trading small caps and penny stocks.
You see a .50 move in a $1 stock is a 50% gain, whereas a $5 move on a $50 stock is only 10%… so I put my money where it will work hardest for me.
And since I know where to look, I have the potential to find great outsized moves in pennies and small caps on a daily basis.
But instead of showing you my last 30% gain on an overnight play in a penny stock, I’m going to give you a little bit of a different view of my world today…
And walk you through some examples of what happens to certain penny stocks when a fire takes hold of the sector.
Trust me, this will be eye opening and may boggle your mind… but it’s all real.
Ring a bell? You may be familiar with the Novavax name.
Maybe this will refresh your memory… they were recently granted $1.6B by the U.S. government as part of “Operation Warp Speed.”
So while NVAX is now a well known name in the market because of the race for a COVID vaccine, not many people knew about this company as recently as last November.
That’s when I was writing about the potential for a short squeeze in the stock. Check that post out right here.
At the time NVAX was trading at $4.59 with a high concentration of short interest. The short ratio was 5.3 and the short percent of float was sitting at 20%.
Below is a chart of the price action I was looking at in November.
Looking at the chart of NVAX, we’ve seen some recent moves to the $8 range.
However at the moment it had come back down to earth and was consolidating in the same range it was in before those two massive moves up…
What I liked about this chart was the bottoming formation over the past month coming out of the downtrend… and at the current price it was pushing up against a resistance level…
And then I featured it in another letter on January 27th, talking about the squeeze up from the exact catalyst mentioned in November… the clinical trial.
But then we got some added fuel to the fire with the coronavirus potential from that same biotechnology they were working on already and things just exploded from there…
The chart below was from my January 27th post where I break down how the squeeze finally came about.
You can see the drug was first fast tracked from the results of the clinical trial… and then it was realized there was potential for a COVID vaccine here and BOOM.
Enough about when it was a penny stock…
Look at NVAX now:
That little known $4 biotech is now a $108 stock at the top of national headlines.
But Novavax isn’t the only penny stock that’s now way outside of my daily trading level…
Like I said when a sector catches fire… investors, traders, and speculators love the penny and small cap space to look for potential.
Just look at Vaxart…
This is another penny stock I’ve been trading on and off that’s now out of my target price range.
I featured it in a Feb 3rd email, along with NVAX and some others, when I was talking about coronavirus plays in the penny and small cap arena… VXRT was trading at a mere 1.25.
And in a live training session at the end of February, I took a trade at 1.28 to see it shoot up over 150% just 3 days later.
I wrote about it again June 29th to highlight some chart setups along the way to its recent break above the high range at $4…
Which led to VXRT shooting up like a rocket.
And today it’s still higher… just look at this chart:
Almost 1,300% to the high from my February trade at 1.28
Listen the list goes on and on…
I just wanted to show you a little bit of the fire that can take the penny market by storm.
A couple of the many others moving like this lately are INO which I was initially trading in the $3-$5 range back in February, and is now out of my penny stock arena based on price.
And CODX which I was trading around $2.50 back in January on a pullback into the gap…
Look at where it is now…
It’s not exactly a penny stock anymore, that’s for sure.
As you can see penny stocks won’t all be penny stocks forever… when a certain sector takes off, if you know where to look there is a lot of potential to be had.
But it gets better…
You don’t need to work on finding the next NVAX or CODX to make 10x your money.
I traded all of these stocks but I wasn’t in a single one of them for a 4 digit move.
There’s a lot of extra market risk when you are sitting in a stock for so long… especially a penny stock.
And what if you picked the wrong one? After 6 months of waiting you are down with nothing to show for it.
I’m not worried about all that.. I can look back at these charts without a single regret because I know I traded my strategy and that is what works best for me.
And during this time I actually took a $500 account beginning towards the end of January and in less than 3 months had turned it into $10,758* without holding onto any of those longer moves.
Learn how I use my strategy to pick up base hits over and over and let those add up to the big return on my account.
I don’t have a crystal ball so it’s much easier for me to take advantage of short term momentum for smaller double digit moves than try and hit one out of the park.
Check out my Free Stock Trading Starter Pack to learn more about growing a small account.
*Results presented are not typical and may vary from person to person. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer.
The pandemic hit and the federal government stepped in to create a floor for the markets.
Part of this is being done by taking actual stakes in public companies.
Originally designed to help companies that relate to national defense, i.e. Boeing (BA).
The feds later broadened the reach due to the fact that some of the original companies targeted turned it down in the end.
If you need it, you need it… but I wouldn’t want the government owning a big chunk of my company either, this isn’t China.
So now they have all this money for defense companies but nowhere to put it… and in comes YRC Worldwide Inc. which ran into major financial problems when the shutdowns began.
Well that’s not the whole truth. They were actually struggling already which makes the deal I’m about to share with you a bit controversial.
So with losses stacking up and debt obligations ready to sink them…
I’m going to take through what happened next and show you exactly why YRCW is on my watchlist for this week
YRC Worldwide Inc. has been beat up but as luck would have it Boening said no thanks to the federal CARES Act loans, creating an opportunity for YRC.
The details were announced July 1st, YRC will be getting $700 million from the U.S. Department of the Treasury to help rebuild. But it comes at a cost… the government is taking a nearly 30% stake in the shipper.
So what does YRC get for giving up so much ownership?
The company said the $700 million it was receiving from the federal government would be cut into two loan tranches, the maturity date on both is Sept. 30, 2024, to be settled with a balloon payment. This gives them a 4 year window to work without needing to make major repayments.
And of course it comes with some other basic requirements as the money is part of the CARES Act.
Liquidity, employee retainment, and executive compensation are of the areas that will be watched.
And this is where the news ends and the speculation begins.
YRC is a little known shipper that has been struggling for years. The company’s market capitalization before the government funding announcement was around 1/10th of the “bailout” money.
So how can the government justify giving $700 million or 10x the value of a company that was struggling before the pandemic? It’s supposed to be more of a bridge loan to help them weather the storm.
But with YRC, the storm does not represent all of their problems. This loan has the likelihood of being one of the more questioned “investments” by the government during the pandemic.
That doesn’t change the fact that this is a catalyst that will move the stock.
Let’s look at why it’s now on my watchlist for the week.
Below is a chart of YRCW going into the announcement.
The stock was clearly trending down before the Covid crisis.
After which it held support above 1.40 and YRCW started moving up, and traded at the upper range of the consolidation at 1.85 when the news came out on July 1st.
Now take a look at the next chart below…
On July 1st, the announcement day, the stock shot up over 90% to highs, and closed around 75% higher that day.
After which YRCW made its way back to the 200 day on a 50% Fibonacci retracement and held support there.
With another explosive move up to the hit the highs around 3.55 on Friday, YRCW jumped onto my watchlist for the week.
As you can see the stock is failing to break out today, so there is no trade yet.
But with the big $700 million loan, this is one to keep an eye on. While the long term prospects of the company may be suspect, the stock will definitely be in play.
Watch for it to stay above the 200 day on any pullbacks and when it breaks above the highs, I’m looking for a potential move towards the 4.50 range.
Whether I take a position in YRCW has yet to be determined as I am waiting to see a proper setup whether that’s on a breakout or pullback.
But now that I have it on my watchlist, I’ll be ready when it does.
This is just one of the stocks on my watchlist for today. I actually work up a list every single night and send out a video breakdown to my members so they are always ready for the day ahead.
It also serves as a great learning tool as I’m able to walk them through what I am looking for before it happens.
What I see now, why I’m watching it, and what I need to see to get me in.
To get started trading, you don’t just need a strategy that works…