So what made AFI have such an absurd move while the markets headed lower?
Yesterday morning, AFI filed a 13D, which showed that Esopus Creek Value Series Fund LP bought a 5% stake in the company.
And when an investment fund acquires a stake in a small company, that's bullish news. After all, investment firms have access to more resources and information than the average trader.
So, as the saying goes … 'follow the smart money'…
That's exactly what traders did to send the stock soaring...
And what's even more interesting?
AFI filed for Chapter 11 bankruptcy only three days ago, looking for a buyout.
That's right, the company was going under…
And after the news on May 9, AFI lost roughly 50% of its value over two days. I can almost guarantee that short sellers were licking their chops waiting for this thing to go to $0.
But instead, a big institutional investor came in. And shorts got blown out of the water!
At its highest point, AFI was up over 320%.
All while traditional large-cap traders got smoked in a bear market rally.
So, if you're still looking at the overall markets to guide your trades — it's time to think differently. Like I say everyday in the SteadyTrade Team — there's always one runner.
And when you can catch 100%+ gains in penny stocks, why would you look anywhere else?
Like I've been telling traders recently — focus on afternoon trades. Stick with high volume, catalysts, and the best setups. AFI checked all of the boxes…
Find out what will be the next hot runner with me today!
I'll see you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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