Here’s a recap on NBEV, and a stock I’ll be trading tomorrow. (April 09, 2019).
NBEV LNN
Let’s get into NBEV ( NASDAQ: NBEV ) here. Yesterday it was up like 38 percent on a deal with Walmart ( NYSE: WMT ) and I said, “Hey, this stock could even move more.” That’s not a prediction but a possibility and I gave you specific instructions; it is pretty easy to explain here.
Yesterday the intraday high was 6.69 and I said after a 38 percent gain, or whatever it is, you are going to have a tendency to take profits. However, you also have to look for the possibility that there is going to be follow-on buying, but you have to look for it. You can’t predict it you can’t anticipate it. It would take a real fool to look at a stock that is going up 38 percent and say, “I know this stock is going to go up tomorrow.”
Instead, you wait for a trigger. And my trigger was if the stock moves literally a penny, 6.70; the only way it is going to get up there is that there is enough demand for this stock that it is absorbing any stock for sale and still can’t get enough. That trigger was not filled, it wasn’t even close to being fired. And so this was a possibility that didn’t happen.
The reason I am pointing this out is because it is really important that you understand, and this kind of dovetails into what I am going to be talking about tomorrow, you have to have a trigger you can’t just say, “Oh, the stock is down a lot, I am going to buy.” Or, “The stock is up a lot, I am going to sell.” There has to be some kind of a signal; there has to be a setup and there has to be a trigger. We are going to be talking about all tomorrow.
Still, with NBEV ( NASDAQ: NBEV ), what I would do? I will tell you what I would do. I will tell you exactly what I am going to do. I am going to set an alert at 6.65; give me a little bit of a head start here, you can do it on trading software and it comes to you right away. If the stock goes up in the next week or two above this 6.69, I think then the stock is going to continue to move for the reasons I just talked about. But for now, this was a possible trade that never really panned out.
I want to look at this stock as kind of a preview of coming attractions. Today Lindsay ( NYSE: LNN ) opened up more than 10 percent below yesterday’s close, almost 12 percent and then it still down 12.5 percent. But if you just bought at the open and sold at the close, you are up over 2.5 percent. If you traded it more than that during the day you have got a really nice move.
And here’s my bet: I haven’t even looked at this intraday, I didn’t make this trade I just came up in one of my scans today. My bet is that the stock ran up this way first thing in the morning. I’ll be darned, imagine that, that’s what happens. These stocks, if they are going to move they will move nicely and you can make your best money first thing in the morning. You are in and out within an hour typically with plenty of minutes to spare in that hour, that’s why I call it 59-minute trading.
This is a stock that would have worked. At this point you could still even get a little follow-on buying tomorrow morning. But I would say that at this point, after the kind of move it made today, it is probably just ripe to do some backing and filling.
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