How to find the next runner.
Hello guys, I hope that everyone is doing well! This lesson was long OVERDUE! In this lesson, I will teach you how to find the next potential runner (as many of you guys requested). Lets get started!
As many of you guys know, today there were SO MANY RUNNERS! How can I figure out what is next? First, you must understand the THEME of the day. Today’s theme was OIL/Pennies. Why? PED (The biggest runner of the day), was only 30 cents yesterday and related to OIL. News came out about the company turning 75 million debt into 7 million (Which is pretty big and that is what brought in the buyers). It ran to 2.79 HOD which is 800%+ and it is still going higher after hours. What does this mean? It means that there will be SYMPATHY PLAYS! Sympathy plays are stocks that will most likely not have a big of a gain such as PED but they will still make a decent move regardless because they are similar. This goes back to understanding the theme of the day… oil/penny (stocks under 50 cents just like PED). That is why CEI, HUSA, YUMA, MXC, and TGC made a move today. These companies are ALL related to oil (Some are over 50 cents but they fall into the same theme).
If you go on Finviz.com, you can check to see what type of company the stock is. This is why I alerted YUMA!
As you can see, YUMA presented a very beautiful daily chart. A stock that has been beaten down, broke short term downtrend, and has a GAP TO FILL!
I alerted this several times. My first alert was before it made HOD. I have noticed that CEI broke HOD and YUMA was setting up to break it just how CEI did.
It was the perfect time because POWER HOUR was coming up (Last hour of the market). This is where volume/buyers come in which is why I suspected YUMA being a power hour runner off of CEI. These are both stocks under 50 cents and are related to OIL!
Now how did I actually find YUMA? To be honest, it just popped up on my scanner and I heard a lot of chatter on it. So I went on finviz to see if it was related to the theme of the day. Turns out it was, and I knew that this was a potential play. There are several themes that you guys should know. Such as biotech, penny, tech, bottomed out stocks, etc. You won’t figure it out all at once which is why you must analyze every runner and see what the relationship is. So in future reference, you will know where to look next! #TKE
Paul
28 Jun 2018Much appreciated Eric I think I’m finally beginning to learn the trends.
Thanks for all your postings.