It may seem counterintuitive given everything happening in the world at the moment, but we’ve actually had a few really good days in the market!

Just look at the last three trading sessions of SPY:

A strong rebound, with solid and healthy intraday volatility!

The new geopolitical and economic realities may be hard to stomach… but life goes on, at least for the market!

And one big testament to that is the small-cap action – of which we’ve got a lot yesterday!

When penny stocks get moving en masse, you really know investors’ are getting hungry for some risk-taking!

Are we about to get some major multi-day small-cap runners? It’s too early to tell. 

But if that’s the case, here are a few names worth watching, brought to you by none other than Jason Bond:

Sientra, Inc – SIEN

Market Cap – $159.2M

Float – 56.3M Shares

Short Interest – 18.4%

As you likely figured by now, it’s the short interest part that gets Jason very excited.

From the chart standpoint, the name is long due for a bounce, and having now found support near $2.50, it might have an attempt to move higher, with the rest of the market. 

Should volume come in – short covering will follow and accelerate the move higher. 

To get involved, Jason wants to see the name hold $2.50 and start advancing higher over the next few sessions. 

Cadiz Inc – CDZI

Market Cap – $114.5M

Float – 27.3M Shares

Short Interest – 6.4%

In a similar fashion to SIEN, this chart can really use a bounce! 

And while the short interest is not as impressive, it looks like in CDZI the move may have already started!

Jason wants to see the current uptrend maintain and gain steam. He’s interested as long as $2 and then $2.30 gets supported. 

Nano Dimension – NNDM

Market Cap – $883.4M

Float – 258.4M

Short Interest – 8.9%

If you’ve been trading for some time, you may remember NNDM – the name was once on every traders’ screen, due to its spectacular run-up from under $1 to nearly $18 in late 2020 – early 2021.

All good things in small-cap land usually come to an end and NNDM was no exception – the stock has been beaten down badly!

Now, having given back so much, it seems to have found some support – if it were to bounce at all, right now could be the time!

Jason sees $3.30 as a key inflection point – he is interested in trading the long side, as long as the stock stays above that level. 

If you want to hear his detailed, live commentary, or see his real-time entries and exits – be sure to pay a visit to his Live Trading Room!

I usually say that major global events, however dramatic they may be, often present some of the best opportunities for us, traders…

Whether we like it or not, this is one of the more cynical realities of this job – at times, traders thrive when others suffer.

Today, I will make no political comments of any kind, except express my heartfelt support for the people of Ukraine and offer my prayers for anyone caught up in the conflict. 

It’s a bad situation, and I hope we get a quick and peaceful resolution. 

And yet, even on a day like this, we have to keep on grinding… and keep on making the most of those extraordinary opportunities. 

Let me share how Jason Bond used the “then-upcoming” and the now ongoing conflict to find a truly mind-boggling trade opportunity.

The War Around Energy

Understandably, a lot of emotions go into events like the current Ukrainian situations, and, in judging who’s right or wrong, it’s sometimes easy to omit the bigger picture. 

But the reality is – every major player in the conflict is involved in the energy sector… and involved big time!

Russia is one of the world’s largest exporters of oil and gas. 

Europe is the largest buyer of Russian oil and gas. 

The territory of Ukraine remains the main transport route for Russian oil and gas flowing into Europe.

The US, for what it’s worth, is formerly the world’s largest producer and the world’s second-largest consumer of fossil fuels. 

And that leads to a very simple conclusion – any major trade disruptions among any of the above will affect fossil fuel prices!

The price of oil has already been on the rise – driven by lower production in the US and increasing consumption worldwide due to the easing of COVID-19, here’s the 1-year crude chart:

With the market so hot and tight, what would’ve happened to it, should the major Russian supply be at risk?

That’s right, the price would skyrocket – exactly what it’s doing right now, and exactly what Jason Bond saw coming. 

Jason Bond’s INDO Idea

Jason realized, seemingly ahead of many others, that in case the conflict gets heated, the price of oil can get a huge boost. 

So, he went on looking for ways to express that conviction in the market. 

He went through the list of companies, domiciled in uninvolved countries, that trade on US exchanges… and noted one stock getting traders’ attention: Indonesia Energy Corp (INDO).

The chart looked great too – just look at that tight, post-run consolidation around $4.50!

Jason knew if the conflict escalates and the stock breaks out, he needed to be in, so in he went. Here are his live trade alerts:

And while this trade may not have worked out, as well as he had hoped, as he ended up getting shaken out for a small profit:

… his idea and thought process have surely delivered. 

If you want to see more trade alerts like the one above, make sure to pay Jason a visit in his Live Trading Room!

If you haven’t been paying attention to the small-cap land, here’s one name that’s turned some heads over the past few sessions – Ocugen (OCGN).

What began as a promising ripper, driven by a solid news catalyst:

… turned into a disaster last night, as the company dropped a stock offering, right after the market closed:

And while yesterday’s buyers are understandably pissed, let’s review what exactly happened and try to answer the key question of all – is OCGN about to have another run?

OCGN Story

It all began on Friday night when the company announced the FDA had lifted a clinical hold on the company’s investigational new drug application to evaluate a Covid-19 vaccine candidate.

While that may not look like much on the surface, it sure instilled confidence in many investors – remember this insane after-hours move I showed earlier?

It didn’t hurt that the company is one of the most shorted names either – according to Finviz, short interest stands at over 28%.

When a name so hated upticks 50% in half an hour – traders get interested!

Heck, our own small-cap specialist, Jeff Williams, who is known for being very strict and selective, had it on his watch!

Here’s the idea he laid out yesterday morning: 

Jeff ended up skipping the trade altogether, which proved a fruitful decision – as I already mentioned, late last night the company announced a stock offering. 

This morning, we found out the pricing details: OCGN offered 15.97M for total proceeds of $53.5M. 

Once we do the math, it comes out to $3.35 per share.

And this is where it gets interesting!

Can OCGN Have a Post-Offering Squeeze?

It was the pricing that really caught my attention – $3.35 per share is NOT a bad price!

This is just a tad lower than where the stock’s been ranging for the past few weeks:

So the stock costs as much as it did just a few days ago, but now: one of the company’s risk factors is removed + they’re better capitalized, with no risk of another offering in the near term. 

Oh, and did I mention that the shorts are probably sitting in the stock as comfortable as ever?

Now, I’m not saying to blindly buy and pray, but the market seems to agree with some of the logic:

The stock is holding strong support at $3.35 & trading above the offering price – never a bad sign!

I want to see this trend continue – ideally, I hope OCGN stays in the $3.40-$3.60 range over the next few days and gradually advances higher, putting some pressure on the shorts.
And once we regain $4, it’s literally game over!

OCGN is definitely a watchlist item for me in the next few sessions – if you want to see my entries and exits live, be sure to pay me a visit in the Master’s Club!