this week's lesson.
Today I want to go over several tickers, $UXIN, INPX, and $MRIN, which made it possible for a $66,000 gain in one week.
Starting with $UXIN, people see the hype with multiple overextended green days; however, the market cap is 2.43 billion, which wouldn’t be in your comfort level. We previously discussed $CRON, which had a similar market cap, and with using $CRON as an example, your overall chat is messy with a substantial wait to drop even 10-20%. If $UXIN turns red, then the squeezes will come in waves as will your frustration because they don’t hold the same patterns as penny stocks.
$INPX takes us in a different direction as this stock is a micro float with a much smaller market cap. We don’t see much resistance up ahead on the long-term chart, and then it reverse split. This pattern will create low float and the expectation of a massive morning spike near 30-40% in the morning push. $INPX trapped many people who bought into the breakout; however, I shorted around $5.50 and covered into the weakness as those that purchased during the breakout found themselves underwater.
$MRIN is the last ticker I want to get into, and it presented an interesting dynamic because usually, penny stocks don’t get up this high. We would need to see a massive increase in volume, such as 30-40 million shares, to form consolidation resistance for this ticker to start on the downside. $MRIN is a stock at the top of my watch list, because if it stays green with choppy volume, then we will see short squeezes every single day. I would be looking for massive volume overextension as I took a position to swing after the first red day.