How many trading patterns have you used for over 20 years…
…ones that keep turning out great trades.
I wrote my first draft of the 7-Step Penny Stock Framework almost two decades ago…
…and I just used it to pull off a textbook Weekend Trade.
Anyone can find stocks Safety Shot (NASDAQ: SHOT) and execute profitable trades…
…but only if you understand how to apply my 7-Step Penny Stock Framework.
That’s why I’m going to walk you through how I constructed the trade from start to finish.
Table of Contents
The News Catalyst
Every good trade setup starts with a news catalyst.
The best ones can last days, even weeks.
The company’s drink goes on sale on December 7th on Amazon.
Leading up to that event, Safety Shot announced it sold out within a matter of hours.
The stock had already been on a tear since its earnings announcement on November 16.
This was the fuel needed for the trade.
Now, I just needed to apply the 7-Step Penny Stock Framework.
Analyzing the Chart
My 7-Step Penny Stock Framework highlights seven stages of a penny stocks lifecycle:
- The pre-pump or promotion
- The ramp
- Going Supernova
- Taking a cliff dive
- Dip buying
- The dead pump bounce
- The long kiss goodnight
This Optec International (OTC: OPTI) chart from 2020-2021 illustrates the stages of this stock’s epic run.
Each stage is unique but can be repeated.
As the chart above shows, you can go from stage one through stage five but then repeat stages three through five again.
Now, let’s apply this framework to a chart of SHOT.
You can think about the framework in two halves – the front side and the backside.
The frontside goes from stages 1-3.
That’s when you get multiple days of buying with increasing volume.
This is when I like to trade breakout squeezes and dip buys.
On the backside, the stock is crashing.
That’s when I’m looking for truly oversold conditions to play for a bounce, and is a great place to look for Morning Panic Dip Buys.
The key is to identify which stage you’re in and apply the correct setup for that stage. For example, you don’t want to look for breakout setups when a stock is plummeting.
Identifying the Stage
When I looked at SHOT on Friday, I needed to go down to a lower timeframe to see what was really going on.
The initial drop off on November 21st was the Supernova bubble popping.
On the 22nd, we got that bounce off the bottom.
Normally, stocks fade into oblivion at this point.
However, shares rallied to $5.00 over the next few sessions before backing off.
Then, they put in a slow but unmistakable uptrend, grinding higher for the following two days.
The final punch came on Friday when the stock ran early on, fell hard, but still managed to close near the highs, which was right at the $5.00 resistance.
This type of price action signals strength.
And when you combine that with the upcoming product launch and short squeeze potential, this told me we were in the 3rd stage again.
SO excited for my https://t.co/NFpygler5m play on $SHOT as they officially publicly launch next week, but have already sold out in a few hours. Add in the toxic invasive short sellers who are probly right longterm & it’s a beautiful #3 setup from https://t.co/46W8tDBAGj LFGGGG! pic.twitter.com/gsdPLwc1oS
— Timothy Sykes (@timothysykes) December 3, 2023
Closing the Trade
During Monday’s premarket, shares peaked early at $5.25 and then right near the open at close to $5.50.
My goal for most trades is a quick 5%-10% win.
With the Weekend Trades, I’ll often aim to close these out near the market open.
However, I wanted to see how this one reacted for a few reasons:
- It had a lot of momentum behind the name
- The product debut wasn’t until the 7th
- Beaten-down stocks often bounce hard in November/December
While I closed out the position as I usually do, shares continued to rally all the way to $6.43.
Had I held on that long, I’d have logged a 32% gain.
And if everything I’ve written for you here isn’t enough, I’ve opened up an entire video lesson I shared in my recent Twitter post:
This is the $SHOT PR that just hit: https://t.co/TJCvOFdJZp all about selling out on Amazon…see my weekend video lesson here: https://t.co/U1NEUIzoRJ as I made it free so you can see me call for this EXACT kind of press release…this game IS predictable if you study enough!
— Timothy Sykes (@timothysykes) December 4, 2023
🌟 Ready to Master the Art of Weekend Trades? 🌟
Trading isn’t just a weekday game anymore.
My recent success with Safety Shot (NASDAQ: SHOT) proves that the right strategy can turn weekends into winning opportunities.
Are you still stuck with traditional patterns, missing out on lucrative weekend trades?
🚀 Discover the Power of My 7-Step Penny Stock Framework.
🚀 Learn to decode the market’s subtleties and identify the perfect trading stages.
🚀 Experience live, step-by-step analysis of real trades, including the sensational SHOT play.
🔍 Tired of watching the market outmaneuver your strategies? It’s time for a change.
🔍 Watch firsthand as I break down the nuances of weekend trading, revealing tactics that most overlook.
🔍 Embrace a method that has withstood the test of time, adapting to market shifts and delivering consistent wins.
📈 Your Journey to Weekend Trading Mastery Begins Here.
📈 Step into a world where timing is everything, and understanding the market rhythm is key.
📈 Don’t let another weekend pass by as a missed opportunity.