Jeff Williams, lead trader of PennyPro.com, says that the incredible heat of bitcoin has created tremendous liquidity in stocks related to the cryptocurrency, which is why he bought SinglePoint Inc. (SING) on Thursday. SinglePoint has gone through a three-day pullback pattern — something it did in mid-August after a previous big run — with a hammer candle on Thursday when the stock rebounded off of its low that should start an uptrend that could take it to the double top it has formed recently at roughly 13 cents per share. Williams purchased 25,000 shares at 9 cents each on Thursday, noting that he would put his stop-loss at the 20-day moving average of 8 cents per share — expecting the stock to get past 11 cents per share. If the volume is strong and the stock is in the target area, Williams said he could hang onto the stock through the weekend. He noted that the stock is buyable under 10 cents per share.
Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $5 a share. At the time this interview was recorded on Dec. 7, he had just purchased 25,000 shares in SING at 9 cents per share and was planning to hold/trade them as described in this conversation. The Raging Bull podcast features experts from the site talking with Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.