Raise your hand if you feel comfortable trading this market ?

If you’re uncomfortable trading in this market, boy I feel ya!

It has been ducking, dodging, slipping, and sliding – like a professional boxer looking for just the right to knock me out.

I don’t mean I’m not doing well with my trades, but man is it hard to pick a direction.

Many traders are just sitting the next few weeks out or switching to paper trading for some inexpensive practice.

Penny stocks have a completely different rhythm – independent of the major indices.

My man “JW” (Jeff Williams) at Atomic Trades knows just what to look for to make a tidy profit, trading stocks that other people have no idea about.

Just yesterday, he sent out an email detailing a small biotech company I have never heard of called Axcella (AXLA).

So how did this get on JW’s watchlist?

It wasn’t because of what SPY or QQQ were doing, but because of pre-market activity based on a news catalyst.

AXLA finally received a patent for a new drug to treat long-COVID fatigue symptoms.

I really didn’t know this was a major issue these days, but the CDC has reported that one in five Americans who’ve had COVID have symptoms that last for 7-12 months (or more after).

It’s no wonder a drug caught investor’s eyes.

I mean, isn’t there a new variant of this crap every few months now?

JW spotted the opportunity and sent out the following alerts to Atomic Trades subscribers when he was ready to BUY … and then when he was ready to SELL:

Maybe making a “quick dime” doesn’t sound like much to you, but stuff like that gets me fired up as a trader.

That’s a 23% gain in about an hour’s time.

Those are the types of gains I am hoping to make with option trades, and he is doing it with stocks.

Alerts went out through the Raging Bull app when he took the trade, when it was approaching his profit target, and when he closed for the win.

And Atomic Trades subscribers were in the loop the entire step of the way.

Long story short, he’s REALLY good at finding these gems before they go parabolic.

Adding penny stock and small caps to your arsenal gives you more opportunities in times when high-dollar companies just aren’t providing strong options plays.

Do you use RSI in your trading?

If not, you’re missing one of the single most important indicators ever designed.

Back in the late 1970s, J. Welles Wilder Jr. introduced the Relative Strength Index (RSI) to the world. Since then, it’s become a staple of technical analysis.

Here’s what it looks like.

Remember that stocks, especially when there’s no clear trend, tend to oscillate from high to low. (We talked about this with Keltner channels.)

The RSI value ranges from 0 to 100, but usually, it falls somewhere between. You ONLY see those extremes in massive trends up or down.

When gets to around 70, it becomes overbought, and the price is more likely to drop than continue to rise.

Likewise, any value lower than 30 is considered oversold. You should be on the lookout for reversals from here.

Let’s look at this on a QQQ hourly chart.

Notice how the RSI line above called the bullish reversal on Aug 18th and the bearish one on Aug 24th?

?PRO TIP: Stocks can remain overbought and oversold for long periods during trends. Never assume a reversal WILL happen, just understand when it’s LIKELY to occur.

Personally, on strong stocks like QQQ shown above, I want to look for RSI in “oversold” territory on the daily chart (less than 30) as an ideal entry indicator.

Just go back and look at how often QQQ stays under 30, and I think you’ll see why I like that single indicator so much.

This is a key component in my analysis and you should definitely add it to your charts.

Next time I want to discuss implied volatility (IV) and it’s importance for buying and selling options.

P.S. If you have any questions about Jeff Williams or “Atomic Trades” call Jeff Brown @ 800-585-4488 or ([email protected]), and he would be happy to talk about any special offers, payment plans, and help you in any way possible.

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