While we had a solid day for stocks on Tuesday, overall it’s been another bleak week for Wall Street.
The list of closures across the country continues to grow, and fears about the long-term economic impact of the coronavirus sank stocks again yesterday.
In fact, I can barely remember a time the Dow Jones Industrial Average (DJI) didn’t move more than 1,000 points — in either direction — each day.
However, despite the sell-off — there are still ways to make money in this market.
In fact, just yesterday, I made almost $10,000 in a SINGLE TRADE in less than two hours over at Jason Bond Picks — all while the Dow was plummeting.
And when the session was over, I sent paid subscribers of Jason Bond Picks, Weekly Windfalls, and Jackpot Trades a very important Bond’s Beat — the newsletter I write to communicate with all my members in one space.
But because this information is so valuable, and because I fancy myself an educator above all other things (just check out this week’s WealthWise podcast on my Greatest Trading Lesson Ever!), I thought it was too important not to share with you, too.
So for the first time ever, I’m giving you a SPECIAL EDITION of Bond’s Beat today!
Because I want you all to succeed in trading, genuinely.
Who’s to say you’re not the next RagingBull guru?
You gotta start somewhere!
And maybe it’s with this pattern that can be found in both bull and bear markets…
Almost everyday I make a move on an intraday bull flag pattern. And the wording of the alert I send to Jason Bond Picks (or occasionally Weekly Windfalls or Jackpot Trades) members is always the same.
Usually it cites a first-day mover on news with heavy volume.
In the case of Biomerica (BMRA) volume — on Wednesday it traded over $273 million, and was No. 416 of 8,676 stocks in regards to liquidity for the session.
So early Wednesday, I bought the continuation pattern (BULL FLAG) on BMRA at $6.44 per share.
It ended up being a nice win, and I summarized it with this chart after buttoning up profit of more than $9,000, or just shy of 50%.
Which brings me to…
When I alert these intraday bull flags — again, especially on FIRST-DAY MOVERS on HEAVY VOLUME — I almost always say the following, word for word, usually to Jason Bond Picks members:
“PROBABLE DAY TRADE, POSSIBLE GAP PLAY”
What I’m saying in that sentence is… I expect that if this works, I’ll get paid today, and if I get paid today, I might hold SOME of my shares (1/2 or 1/4) overnight for a gap in price action.
And while I didn’t hold any of my BMRA shares yesterday, this is a good example of why I usually say that on these setups.
Here’s BMRA at 6:28 p.m. ET on Wednesday, trading at $14.61 — up 127% from my alert just hours prior.
With that in mind, here’s a little Jason Bond Decoded (psst! more where that came from this TUESDAY, MARCH 24 — mark your calendars!) for current and future subscribers who receive my trade alerts:
INTRADAY BULL FLAG: The “flag pole” represents the initial move (in BMRA’s case it was a rally from $2 to $8, seen in the first chart above), and the geometric shape — in this case a rectangle we refer to as a “flag” — is the RESTING PHASE, or the CONTINUATION PATTERN. When I spot this, it usually means the stock is going to continue in the direction it’s going once it CLOSES the pattern.
BUYING OFF THE DEMAND LINE: This means I’m buying shares when they trade at the bottom of the bull flag, or the “demand line,” which is a horizontal support line on the charts.
LOOKING FOR HIGH OF DAY (hod) or SUPPLY LINE: This means I expect the stock to hit the top of the bull flag, or the “supply line,” which is a horizontal line of resistance on the charts.
PROBABLE DAY TRADE: I think I’m right about the pattern and if it works, I’ll likely get my 10%-20% profit today — so no reason to hold overnight, especially when I’m trading shares of small-cap companies that could issue an offering.
POSSIBLE GAP TRADE: This means I see a strong pattern on the stock, and expect it’ll likely run even more tomorrow. Therefore, an after-hours gap up is expected. In most cases I’ll have trimmed my position by 1/4 or 1/2 by the close, in case I’m wrong, so as not to take a loss after being up big into the close.
It’s good to be back and focused on stock momentum again.
As I dust off my own trading with these, members of Jason Bond Picks, Weekly Windfalls and Jackpot Trades will see better and better trades coming from me.
And as I’ve always said, it doesn’t matter what market we’re in, there will ALWAYS be breakdowns and breakouts, that’s just how it works.
I didn’t nail every trade yesterday, but I hope you can see how this bus is headed in the right direction — and subscribers especially love my BRAND-NEW ‘Advance Alerts,’ where I tell them what I’m going to trade BEFORE I trade it!
They’ve been asking for this for YEARS and now I’m delivering.
So going forward, when I write to my Jason Bond Picks members and say, “Intraday bull flag, first-day mover on heavy volume, probable day trade, possible gap trade,” you now know exactly what I think I see.
It’s been the same thing for 10 years, and now that I’m refocused on stock momentum, you should expect me to hunt down as many of these as I can.
Oh, and don’t forget to save the date for my CRITICAL WEBINAR this Tuesday, March 24 — don’t miss this one!