We had a monster trade on Luckin Coffee ($LK) today. Many traders got a double in less than 30 minutes. The stock was dead the rest of the day…but I don’t think it’s done. (April 02, 2020)
LK
I want to look briefly at Luckin Coffee ( NASDAQ: LK ). This stock absolutely got crushed today. If you are watching this video, which you are, you are probably going to be getting an email sometime soon about the 59-Minute Trader course and that curriculum, which helps us find stocks like this.
The bottom line though is this: After this had such a big massive sell-off, where it actually opened up below $5.00, it had a big brutal sell-off because of allegations of fraud. When a stock falls like 85 percent, the allegations are typically true. So the stock runs up like it did; first thing in the morning it was a monster.
Then after all the guys that were connected got all the stock that they wanted and then later got rid of all of it that they wanted to, and, yes, I do think that is how it works, the stock kind of drifted down. And then gradually throughout the end of the day the weak hands had to sell. The guys that bought on the way up or a lot of times bought right at the top, holding out for more, couldn’t get out and then gradually the stock just drifts down.
Well, you can see that it is actually up after hours a lot. If it closed here, it closed at 6.38, and right now as I do this video it is up at 6.90. I would say 8.3 percent is kind of a lot. I am saying I don’t think this play is dead; I don’t think this deal is dead. This is such a big move that this stock could be working for you on Friday morning.
I don’t have a position in this right now, though it could very well be that by the time you see this video I might have a position. But with all of that massive dump first thing in the morning, where all this stock got sold; how much supply is overhead? I just think it was such a big massive rush of supply into the market that took the stock down so much. Guys, and ladies, the first 5-minutes of trading, 63 million shares, where I come from that’s a lot of shares. So look for this stock to actually move up tomorrow and probably give you another good trade.
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