Well, it has been a while but here I am back again. Well, where to start? The markets are ramping at the moment. Bitcoin related stocks, cannabis stocks, biotech stocks – all only know one direction, up! Especially the OTC sector has come back to life and there have been some truly exceptional price moves.
I just want to give a short list of the stocks that I will be watching next week (I won´t be trading though) and how my plan would look like.
On the Nasdaq side I have VTGN and OHGI as two possible bounce plays on my watchlist.
VTGN is a clinical-stage biopharmaceutical company. Its stocks spiked more than 140% after it had announced that the US patent and Trademark Office had issued a notice of allowance for a patent. Then, on December 11 it gapped down. What had happened? VTGN had announced that there would be an offering of 10,000,000 shares, each with an attached warrant with strike at $1.5. Before reading the filing I thought that this was a likely bounce play at the $1 mark. But with all these new shares (estimated 21 million shares outstanding after offering) increasing the supply, most likely there will be some selling pressure. Anyway, the $1.5 will represent strong resistance in the future. But I will watch this closely in the future.
OHGI spiked big time on Thursday after an announcement hit the news that the technology company was about to acquire another software company. The price move from $1 to $3.4 based on these news shows just how speculative the market is at the moment. On Friday, OGHI gave back some of its gains. Given its low market capitalization ( $20 million) and rather small share float (5.9 million) I will be watching this on Monday for a bounce play based off of the $1.8 level.
Now, let´s move over to the OTC market. There are so many plays in this market at the moment. Most of stocks I will be watching for a breakout and continuation move.
NXTTF: Namaster Technologies Inc. is a technology company based in Vancouver (many sketchy OTC companies are based there). It currently associates itself to the cannabis sector. Whereas during the Dot-com bubble companies would put a “.com” behind the name, today associations to Bitcoin, Cryptocurrencies, Blockchain or Cannabis do the trick. Anyway, despite its move from 20 cents to almost $1 I the strategy would be to buy the $1 breakout and depending on the time of the day hold overnight to sell into the morning spike.
Let´s move over to the Crypto-mania.
GOHE: Payment solutions company Global Payout Inc. is especially smart, associating themselves to both Cryptocurrencies and Cannabis (wow, what a genius move). Consequently, the stock has experienced a move from 2 cents to a high of 16 cents. At the moment 13 cents looks like resistance but I expect there to be still back holders up to 16 cents. So, until this level is broken (hopefully not too fast), I would be wary to enter. The plan would be to buy the breakout at 16 cents.
INTV: Last week Integrated Ventures Inc. announced incredible news. Crypto-mining revenues up to date “stand at $34,000”. WOW, just incredible! On Friday, INTV´s shares could do noting but more than double and consequently break out. Given this exaggerated move I am hesitant to predict the gap up and morning spike on Monday (after all for crypto stocks this depends on the Bitcoin development too). But that is my breakout pattern so far – otherwise I would need to adjust it. Thus, I expect a gap up and morning spike and should be in this trade at this point.
RCGR: Here comes the next Crypto play. “Rich Cigars Inc., becomes Intercontinental Technology Inc. to reflect new direction including multinational patent ownership and aggressive cryptocurrency mining”. Do I have to add anything else to explain the fundamentals? No? I didn´t think so either. I have this on my watchlist since I could imagine that this bounces big time on Monday after its 40%+ less on Friday.
EPAZ: Epaz….Well, why did it spike so much? “Epazz technology files for patent on Blockchain smart legal contracts technology”. Wow, this PR does not only have Blockchain in its header. No, it has “Blockchain” and “smart”. Smart move indeed. I have no idea where this is going to go. But it is on my watchlist.
BTCS: This is a relatively “old” Bitcoin stock already. We have encountered it over and over again since May. I have this on my list due to one emerging pattern. After a rather big green day this tends to gap up and morning spike. Given the almost 20% up day on Friday I expect this pattern to continue on Monday.
MGTI: Another one riding the Bitcoin wave. It currently trades at $4.2. Breaking the $4.5 level would be a major development and the plan would be to buy this breakout.
SING: SinglePoint Inc. is the next one on the list. Wait! Don´t we know this already? Yes, it is another cryptoplay that we have encountered already in August. I guess it will take somemore time but buying the breakout at 13 cents would be the plan.
BRVVF: Sector? No Bitcoin and no Cannabis! This is a basic materials play! It does not have the greates liquidity at the moment but I will watch the $1.4-$1.5 level for the breakout.
GBLX: Cannabis again. This still needs to climb back 50% before reaching previous highs. But I´ll be watching it.
BUDZ: Another weed stock. Let´s watch the $3.6 previous highs.