As I write this, I notice that LGVN, the high volume runner from yesterday, is trading above $12 in the pre-market.
Historically, during November, I have seen many low floats, small-cap stocks run. These stocks might even turn into broader sector theme plays, thereby igniting other small-cap stocks.
Who knows, this might be the start of a new low float mania cycle.
That would be good news, as that would bring volatility and opportunity into the market and many low-priced stocks.
However, that wasn’t the case yesterday. Yesterday was a reasonably slow day by my standards. It was a day to be patient, precise, and focused on quality over quantity.
My members in The Trading Floor Chatroom saw me place these trades and explain my process in real-time.
I got long in two stocks yesterday and held them overnight, as I am looking for continuation today.
Timber Pharmaceuticals (TMBR)
TMBR, according to Yahoo, is a clinical-stage biopharmaceutical dermatology company that focuses on the development and commercialization of treatments for orphan designation diseases.
TMBR will host a conference call on Monday, November 22nd at 10 am ET, to discuss topline results from phase 2b control study of Congenital Ichthyosis for Lead Asset, TMB-001.
Yesterday shares of TMBR were up 7.17% and traded significantly higher volume than the previous trading session.
I like the curl on the daily chart for TMBR. The curl, along with the increased volume on the consolidation breakout yesterday, led me to believe that the stock could experience further momentum to the upside.
The 20d MA, around $0.62, is a target area, and I would look to sell my position in that area. I would look to sell there because it is ahead of the gap fill and a significant resistance zone.
I got long TMBR at $0.55, close to the VWAP yesterday afternoon, and held the position overnight.
I am looking for a move towards the 20d MA line, around $0.62. My stop on the position is about $0.51.
Osceola Gold (OSCI)
OSCI, according to Yahoo, operates as a precious metal mining company. The company focuses on the development and exploration of gold and other precious metal mining projects.
OSCI closed the day up 255.95% yesterday and traded impressive volume, doing 20.4M on the day.
Yesterday the stock experienced a significant consolidation breakout, after breaking over resistance at $0.12 and closing near the high of the day.
I bought the stock at $0.3211 and was originally looking for a target in the region of $0.35. However, the solid close and sustained increase in volume led me to believe that the stock might experience further momentum to the upside.
I am now looking for a target area above yesterday’s high, in the area of $0.40, as a potential target.