Monday, August 26th 2019

$FFHL For all those curious on how this China name continued on Friday while Tariff talk and most likely more are coming here goes. The squeeze + short rotation is crucial. However, keep in mind we have not seen a 2-day winner since $RKDA and keep that in mind. Anything can happen, $FFHL can trap and squeeze towards $10 and that gives the absolute highest probability for $CJJD $ZKIN $CLWT etc. and other china names to move higher. Historically speaking, these names need a 200% or more trigger name to ignite the crowd ($FFHL sitting right around that level). Tariff talk should not surprise anyone. (No politics please) but this is a large back and forth, that most likely doesn’t get resolved anytime soon especially since we heard it was going to finish over 9 months ago. More tariffs, less tariffs, trade war or no trade war. This is not an easy market and should be traded accordingly. That means taking advantage of breakout movers, but never over-staying your welcome. The longer you hold names that are failing to breakout, push higher or find support in a choppy market the more likely it will paper cut or turn into a large loss, keep this in mind. Being “Nimble” is vastly underestimated in our current market conditions. So, $FFHL see what it does. Higher most likely see more risk, since these individual names are keeping micro market afloat. We see it turn lower, most likely any china names lose momo as well.
Although the market closed 700 points $HEPA held strong. If it wasn’t for small block this would have closed over $2.50 and in extremely bullish territory. Nonetheless, keep a close eye on this low float name given chart + activity. Not everyday we see strength like that in micro names and these can lead to MASSIVE moves for names that are ready and have shorts trapped. ($10 gap fill?)
Recent 13G so keep this bottom name on watch for activity. Stonepine increased their stake by 350% and given the chart + low float nature light volume could give this 25% before hitting tougher resistance.
Chart speaking but nothing that needs to be forced. PR most likely needed to send it especially with 50DMA resistance sitting right overhead. However, worthy of keeping on the WL beginning of this week.
Will keep it short and to the point, watch that $3 level very closely. If you remember $BASI $2.00 >$2.75+ last week, then you would be smart to remember this name on the measured break.