Did you get in on the Quiet Riot? Here’s the latest on RIOT. (December 12, 2017)
RIOT
I want to talk about quiet Riot ( NASDAQ: RIOT ) here. I talked about this stock yesterday in the Free Chart video. We have been looking at this for a few days here. My suggested entry had been down here around $15.00. it is kind of a little get out of the blocks a little early thing. Not even close to a new high here but close to established support. So you are buying a little bit around here; you can even keep a stop here. You could actually keep a fairly tight stop because you are just taking a small position; you just want to get a head start. Waiting for volume to come in and then, Boom! You get that; this was a big move.
You could say, “Oh yes, but it failed right there.” No, the closing bell just rang. It doesn’t trade 24 hours a day the closing bell just rang. Look at this massive volume, 20 million shares, that is institutional buying. I have said this before, large institutions don’t trade stocks, they build positions and then they slowly get out of positions. You are not going to see 20 million shares of stock bought and the stock moves up 42 percent; only for Vangaurd the next day to say, “Oh, you know what? We got our money, let’s get out of here.” No. They buy the stock; they hold it. The float is really, really low here, 5.3 million shares; they buy the stock, they hold it because they are looking at $25.00, I think they are looking at $50.00, $75.00, $100.00. They will hold this for a while.
The whole Bitcoin thing got everybody all lathered up. Hey, me too. This is the kind of stock back in the day here, which is just a month or two ago, how many hedge funds? How many mutual funds? How many pension funds? Insurance companies? How many of them were looking at a goofy stock like this? They don’t make any money; they are like a biotech stock only without the product. There is no cancer cure in here. And you go back even further the stock is below $5.00. On some days it is like it doesn’t trade at all, here it traded 600 shares, literally 600 shares last August. That is kind of scary. And now yesterday it traded 20 million shares; today almost 40 million shares.
I look at this, I actually bought some more, I had some yesterday but I added to my position pre-market, which I generally don’t do. Because you can kind of see what is happening. Again, you don’t get big money coming into a stock one day and then flipping it the next. They just don’t, that is not what they do. And so, the stock gaps up today and had a heck of a move all the way up above $30.00, $32.00, $33.00. I didn’t sell some here, to be perfectly honest with you I was doing something else, I wasn’t sitting here watching this stock, I have a life too. But I did take some profits somewhere around in here but I decided to hold some as well. Because even though this sure looks like a blow-off top the way I see it that just may not be the case.
I wouldn’t buy Riot ( NASDAQ: RIOT ) right now. This could very well fall back but I don’t think this is the ultimate top. I think we could get some consolidation. In fact, a consolidation at this time would be really good for this stock. But if you are long I would look for a retest of $25.00. So at this point if you are already long you should be looking at this to decide how much you want to sell, maybe even all of it. If you are not long and you are looking to get in you need to kind of wait a little bit. The easy money has been made over the last couple days so just kind of look for a reset.
Free Chart