Just four more days left of trading for the year.
One thing is for sure: the market is not in holiday mode, and therefore neither am I!
I am still seeing, daily, stocks breaking out, and experiencing continuation and momentum.
And not just individual stocks, but also the overall market.
Yesterday the SPY closed the day at a new high of $477.26, finishing the day up 1.42% and 27.65% year to date.
Not only is this good news for the bulls, but it is also good news for small-cap and penny stock traders as the bullishness and strength in the overall market might lead to an increase in opportunities in small-cap stocks.
Yesterday there was undoubtedly opportunity in small-cap and penny stock land.
One stock that I mentioned to my members live in the chatroom and on my Mid Day Watchlist was USEI.
US Energy Initiatives Corporation (USEI)
USEI, according to Yahoo, markets topical ointments, cannabis oils, tinctures, and vapor pens and accessories. The company was formerly known as Hybrid Fuel Systems, Inc. and changed its name to U.S. Energy Initiatives Corporation Inc. in June 2006.
Yesterday the company released an interview on its Metaverse plans.
As a result of the news, the stock closed the day up 53.33% and traded an unusual amount of volume, far greater than the average volume.
As you might know, the Metaverse is a hot topic right now, and therefore it came as no surprise to me that the stock might experience momentum and a sharp increase in volume due to the news.
When posting my Mid-Day Watchlist and outlining my plan and thoughts for USEI, the stock was trading at $0.002 and up 33% on the day.
I was looking for the stock to provide an entry in that area, and I was targeting $0.0024 – $0.0025, the previous high from mid-October.
Sometimes, the stock goes without you, and that’s what happened here. I never got my entry.
However, the stock did trade to my target and closed near the high of the day.
I liked the $0.002 area for an entry as the stock broke above the previous day’s high and formed a consolidation above the previous resistance.
As we approached the close, the stock broke above the resistance and closed near the highs. This was a textbook consolidation leading to a breakout pattern.
Going forward, I will be looking to see if the stock can hold these current levels and form a higher low or a consolidation.
If the stock can hold near yesterday’s high or above it, and turn it into a level of support, then the next potential target area and resistance will be $0.003.