In terms of individual stocks, one has grabbed the headlines over the last two days, and rightfully so!

This stock has Made SPACs Great Again. Heck, it’s made small caps great again too!

By now, you should know what I am talking about.

DWAC, of course.

Digital World Acquisition (DWAC) was up 356.83% on Thursday. Yes, you read that correctly.

The move came after it was announced that DWAC, a special purpose acquisition company (SPAC), announced a deal to merge with Trump Media and Technology Group.

Should the deal go through, the Trump Media company said it plans to launch a new social network.

As a result of this press release, the stock soared 356.83% on day one and traded close to 500M shares.

The range, small float, the news and headline, volume, and volatility created exceptional opportunities, and of course, I was waiting for the right moment to pounce.

But before I recap my trade, let’s take a look at the technicals of the stock.

Market Cap: 1.31B

Shares Outstanding: 28.75M

The action yesterday in the stock was immense. From the morning till the close of the after-hours session at 8 pm, the opportunity in the stock was endless.

The above chart shows how the stock cleanly held above the trendline and offered four consolidation breakout patterns, all of which had fantastic follow-through and momentum.

Going into day two, I had the following levels of support and resistance from day one. $65 support, which at the time acted as the support of the uptrend. $50 support, which was resistance in the afternoon on day 1. My targets and potential areas of resistance were $80 – $100.

The Trade

I bought the stock yesterday afternoon at $43.28, as the stock closed strong and above support. Volume in the stock was immense, and for the entire day, the stock continued to make higher lows and highs, firmly holding the uptrend.

My plan from the get-go was to hold my position as long as the uptrend remained intact, looking for $80 – $100 in the after-hours session or pre-market the following day, as the action from day one led me to believe that the stock had trapped shorts and would gap higher.

To put it simply, I was right.

I sold ⅓ of my long the following day in the pre-market at $77.25. That sell represented a 78% gain.

I sold another ⅓ of my long shortly after the first sell, at $84. That sell represented a 94% gain.

I sold half of what remained at $100, representing a 131% gain.

Finally, I sold the last part of what remained at $128 for a 195% gain of the open.

That all adds up to an average of a 124.5% gain!

Not bad, if I can say so myself.

The Bottom Line

Not only has this stock presented immense opportunities it has also sparked many sympathy plays and has the potential to create a wild trading environment for small caps into year-end. Hopefully, this is just the beginning of what is to come into year-end.