Here’s one of those money making opportunities. Check out the action in Pieris Pharma (PIRS). (December 26, 2017)
PIRS
I posted in the forum this morning that I was looking at Pieris Pharmaceuticals ( NASDAQ: PIRS ), which is a fairly thinly traded stock. Today it traded, almost 1.5 million but typically the volume is less than 400 thousand shares. Sometimes, like on this day, 130 thousand shares; so it is a fairly thinly traded stock. If you look at it, I am taking away this big, huge volume spike, though this should mean something to you because it reflects institutional buying, almost 30 million shares. But once you get out of that you can see that this is actually a fairly erratic stock.
I was looking at this stock and it popped up on my alert; I had it on my watch list for potential breakouts. I create these watch lists of stocks that have a possibility of breaking out but I am not really quite seeing them yet. I don’t want to be looking at the stinking things every day, it is a waste of time. When you see a stock and you are saying, “Gosh, this might be breaking out,” what are you going to do, watch it every single day? Are you going to look at because it might be breaking out? Hire a trade assistant, have him or her look at it for you. Pay them minimum wage, they are not really doing anything anyway except what? Setting a price alert and then having the alert pop up when the stock hits a predetermined level. You could say here the high was 6.65 so you tell your assistant to set a price alert at 6.65 and then let you know when the alert goes off.
Now, if you are cheap, like me and you don’t want to hire a trading assistant to do what you can do yourself, set the alert yourself. When it pops up that is when you know there is something to do, at least something to look at. That popped up for me today; I got in this initially somewhere around here, I forget exactly when, but once then once the stock moved above 7.00 I added some more. I took about 80 percent of what my position size would be before a normal position size.
In other words, I can have outsize positions every once in a while to where I have got 25 percent of my trading account on one particular stock; this was not it. I took 80 percent of what I wanted to buy first thing in the morning because I felt really strong about the way this stock was moving. And then once the stock got above $7.00 I went ahead and added to that position. Just so you know, I fully expect this stock to maybe pullback, just because we see this all the time. You see a stock breakout and the next day it pulls back, it gaps down a little bit, not all the way here, just a little bit, enough to shake up the weak hands.
But you have to remember that institutions are the ones that push this stock higher. It is not some dude with Bitcoins just decided to exchange them for Pieris Pharmaceuticals ( NASDAQ: PIRS ); this is institutional buying. They don’t just buy this and then walk away. They may not continue buying tomorrow morning, maybe they push this stock up 15 percent. Well, that is enough; now let’s just let it settle in a little bit. The stock gaps down a bit, it flushes out some people and then maybe they are buying right around $7.00. But ultimately the stock moves higher.
That is really the type of trade that I am looking for. If it moves up tomorrow and that is another possibility, shoot, this thing could gap at the open and the next thing you know it is at $8.00 and $9.00. It is very easy to envision either one. I am looking at this as a trade that I think still works. You are late in buying it here but if the stock, and remember I said if, you have got to wait for this don’t anticipate it, it the stock hits 7.40, today’s high was 7.37, if the stock hits 7.40 that is a new high in the trade and you can add to that position.
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