What Was Behind HPCO's Unprecedented 300% Jump In Prices?

Welcome back and thanks for joining us this week.

I’ve got a good one for you today, so stay tuned to our weekly Penny Land Activities.

Today we discuss some of the wildest price actions and penny stocks in the Nasdaq and Amex Markets. I bet the biggest penny stock news of the week for most people is HPCO

This week’s highlight is a gift from the bear market rally.

It's important to keep in mind that stock market movements can be driven by many factors, including partnerships and media coverage. However, it's also important to consider other factors that may impact a stock's performance, such as the company's financials, the industry trends, and the overall state of the economy.

It's also worth noting that stock market trends can be highly volatile and short-lived, and investing in any particular stock always carries a certain level of risk. Before making any investment decisions, it's recommended to conduct thorough research and seek advice from a financial professional.

In a slowly deteriorating economy investors' interest in healthcare and biotech stocks continues to perk. Last week's trend in technology transformed into a sub trend in healthcare technology.

The recent developments come from drug companies like “Hempacoo”

Their common dealings are with hemp products based in california.

If we rewind back to the hype in weed stocks and its legalization.

It's clear how powerful marijuana news can be but now it's just old news.

So why did HPCO parabolic over 300%

Other than Tuesday and Thursday being a notorious turn around days in the stock world.

Unless people just wanted to stock up for Valentine Day because healthcare stocks are strong picks in most market conditions.

Perhaps the catalyst comes from the sudden brand recognition among adjacent factors.

HPCO has big shoes to fill following last week's MSGM run from 2 to 80$

A few days prior HPCO entered a partnership with the face of the Hemp industry, Snoop Dog. Thus increasing their social status in their respective community.

Another related issue happened the night before which primed a lot of media coverage for the secular trend.

It comes from the COSM’s error conversations resurfacing.

It's also worth noting that COSM is in the same sub sector as HPCO.

Meaning people were prone to think a spike in COSM or related tickers was about to happen.

A news update of the error spread on social media after Robinhood released their latest 10k filing with a 57M expense for process errors.

People put one and two together and now Allegedly HOOD caused a run from 30 cents to 24$.

You can find an explanation in the Stock Craft Channel .

Long story short.

Back In December 2022 the ticker COSM had a 1:25 reverse split

The ticker went parabolic 6000% off an error in Robinhood

The buyers had a field day because it ran up to 24$.

The victory is well deserved for those that purchased after the reverse split

but customers from before the reverse split around 30 cents.

they sold more shares than they had.

Which turns them into naked short sellers.

If you had a 3k share position and tried to sell them it would turn into a 72k share short position.

Ultimately COSM squeezed shorts all the way up to 24$

Until they used 57 million in company cash to cover short positions the same day.

Imagine the fear in how much you owed your broker now. especially after RobinHood took away the sell button...

like they did in GME.

HPCO has a Small cap with a micro float of 2.80M. This stock trades like it should have large volatile swings that ignore resistances in the late day. HPCO is a Short Trap. Investors who trade into HPCP stock need to be ready for a quick drop and to take profits quickly. Lead with risk management. How else do you expect to dodge the offering and possible massive volume break common to healthcare stocks.

Trust me, you're not gonna want to miss its developments or its analysis throughout the week in our live premarket-prep morning show.. . This could be a big deal since anyone can use these key factors in your next trade.

Other honorable mentions come from an active week in the communications services, technology and healthcare sectors. Which has created several opportunities this week from gap up and bounce shorts opportunities. You may be looking at your future resistance play for the coming months.

There are many tickers in Penny Land this time around that just didn’t cut it.

However, if any of these stocks are something you may be interested in trading. You may do well to join our discord chat to check out our daily watchlist. Till next week. Happy Trading!

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