Here’s my day trade plus 10 minutes on Novavax ($NVAX) (May 08, 2020)
NVAX NET NVAX
A quick video here on Novavax ( NASDAQ: NVAX ). I was looking at this stock today and mentioned in our forum that I would normally be buying this stock right here because I like the way that it’s in a nice uptrend. It has pulled back, it started forming a little bit of a base here last Friday, and then it has essentially held that base with a little bit of an upward drift this week. So you are kind of just getting an early start on a stock that looks like it’s about to spring through 20.00 and then up here, and so that would be a good trade.
So I said that I would definitely make that trade. And then I looked up here to where earnings are and I am going, “Oh crap, earnings are on Monday.” So then I went and looked up when earnings were going to be reported on Monday and the answer is after the bell. So I am thinking, all right I’ve got one trading day and about 10-minutes for this trade to work, so I went ahead and took a small position in the stock.
Typically I am not going to buy anything just before a weekend; because why do I need that brain damage? But in this case, I am thinking, all right, so it’s a day trade plus 10-minutes, take a small position and this is what I am going to be doing.
If you look at Cloudflare ( NYSE: NET ), which was a stock that we traded really, really well; this was doing the same thing. It started to run up here and then on the day of earnings, boom, the stock ran up here, gapped up, and kept going and closed almost at the high of the day just before earnings were released. And then after hours earnings are released and the stock gets crushed. It actually went up a little bit more and then just got slammed and crushed everybody who bought right before earnings, but really paid everybody off who bought the day before earnings.
So that’s why I am looking at Novavax ( NASDAQ: NVAX ), I am trading it the same way. I don’t know this company but I know this pattern. I don’t plan on holding this stock into earnings on Monday afternoon. If they report in the morning then I am kind of screwed, then I flipped a coin, but I am seeing on earnings whispers that it’s Monday afternoon. So I will hold this stock, look for more upside and then if I can make 8 or 10 percent on a small position on a day and 10-minutes I’ll do it.
So anyway, that’s your trade, I hope it works for you. By the way, if the stock starts trading lower I’ll be out of there really, really fast.
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