Unless you’re living off-grid on a remote island, you probably heard yesterday’s news …
“Elon Musk Acquires 9.2% Stake In Twitter”
For Twitter, the market responded well and the result was positive.
I mean…it’s Elon. He’s a walking catalyst.
Anyways, that’s yesterday’s news.
The point I’m trying to make here is that…
The market responds to news catalysts…and that is a smart trader’s advantage.
Breaking news — either positive or negative — is a key driving force behind the performance of stocks…especially pennies.
Their prices and momentum get quickly affected by the hype.
So when looking for swing plays, I keep my eyes out for catalysts like financial reports, earning reports, or positive news that hints at an increase in the value of the company.
That being said, here’s what you might find interesting…
Two stocks I believe are set up for a good upside this week
MULN
In the last 30 days, MULN has gone from trading around $1 to gapping up to $3 (even spiking as high as $4.18).
The catalyst here: The company is set to boost production and have sealed some key partnerships. Last week, the CEO, David Michery teased that “a fairly large company will be buying” Mullen’s van vehicles “in the close future.”
This catalyst — plus option traders being heavily bullish on the penny stock — makes this stock interesting to keep an eye on
I already have a small position in MULN at $3.06, and I’m looking for middle $3’s to exit. Ultimately I think it could go back to $4.
DIDI
The likely catalyst here: There has been some back and forth with the feds and China as the SEC gears up to de-list Chinese companies from US exchanges.
If some favorable regulatory news comes out of China (and they reach a compromise), I anticipate a big move.
Right now, DiDi is trading at $2.93. My goal for a swing trade would be to exit once it enters the higher $3 range…even though I believe $4 is likely.
Just like this alert I sent out in the live chat room before buying MULN last Thursday.
Here’s the result of that one…
I strongly believe this trade will turn out well too…but we’ll see.
Again, if you’d like to get pre-alerts before I buy, sell, and adjust my position on these stocks…click on the button below.
