The overall trend in the market has continued to the upside, which is GREAT news for me.
Now, don’t get me wrong.
Whether the market is trending higher or lower, I can consistently spot opportunities on the long side in small-caps and penny stocks.
Not only do I spot opportunities in HOT penny stocks, but I also share my thoughts and trade plans daily with my members.
Big shoutout to my chatroom moderators because they do a great job sharing their thoughts and trades with members in the chatroom.
During a short or long-term bull run in the market, some setups and ideas might have better follow-through than if the market was going sideways or lower.
Yesterday, one setup, in particular, experienced excellent follow-through, and my moderators in the chatroom were all over it.
The Gap and Go Setup
This setup is all about momentum in the direction of the gap.
As you can see in the above chart, CELZ gapped higher yesterday.
With the Gap and Go setup, I first look for a stock that has gapped and opened higher.
Then I look for that stock to continue to HOLD the gap during the trading session because that would indicate that the buyers are still in control.
That’s what my moderators identified in CELZ yesterday and shared with my members in the chatroom.
After gapping higher, CELZ held firm above Friday’s high.
The stock experienced a range contraction during the afternoon while holding above the previous resistance of $4.
This provided an entry opportunity for the Gap and Go setup.
My moderator got long in the consolidation at $4.33, looking for a push towards the high of the day.
Shortly after 2 pm, the stock broke higher towards the high of the day, and my moderator closed his position at $4.56 from $4.33.
The Bottom Line
This was a great example of the Gap and Go setup because the stock cleanly gapped above and held above the previous day’s close and then experienced momentum to the upside.
It’s also a great example of patience because my moderator waited for a specific setup before getting long.
On any given day, there might be several hot penny stocks moving.
That’s why it’s so great to have other eyes and ears in the chatroom.
Keep up the good work, gang!
