Breaking News For Quick Profits – $VLCN

Whenever I read I headline I ask myself a few questions:

• Is this news actually new or a repeat of a previous headline?

• • • Promoters love to rehash headlines to artificially pump up share prices. Look out for headlines that reestablish known facts like prior filings with the SEC.

• Does the information materially change the outlook for the company?

• • • There’s a big difference between a pharmaceutical company that receives FDA authorization to sell its drugs and a CEO speaking at a conference. The former is guaranteed to impact the company’s profits while the latter is pretty useless.

• • • Aside from pharmaceutical stocks, popular sectors and timely stories tend to receive more attention and buyers. A great example is Evofem Biosciences Inc. (NASDAQ: EVFM) which popped the following week after the Supreme Court overturned Roe v. Wade.

• When did the news come out?

• • I’m usually suspect of news that comes out at 8:30 a.m. ESastern. I see a lot of companies drop announcements at that time, often buried amongst the other data releases. That doesn’t mean I ignore it entirely, but I’m extra cautious.

You may have a different process to review headlines.

Splitting my work up between the premarket and regular sessions helps me work through the day at a steady pace without feeling rushed.

I note and tick off all the headlines and stocks moving in the premarket.

Then, I separate out any new headlines that come through after the open.

Our Breaking News Team does a great job of highlighting the stories and providing links to the information sources in case I want to review them further.

Click here to start your trial

Volcon Inc. (NASDAQ: VLCN)

Our news alert came out about 15 minutes before the official press release, giving me a jump on the story.

The SEC filing detailed the company’s pre-orders at a whopping $70 million, a huge amount for such a small electric vehicle company.

Right now, we’re seeing a shakeout in this sector. Those who don’t have orders to build for likely won’t survive. So pre-orders of this magnitude are a big deal.

Now, let’s look at the chart.

On the one-minute chart, the first big green candle happened right as the SEC filing landed, hence the pickup in volume.

After that first spike, I waited until shares steadied for a few minutes.

Once I saw volume increase and price start heading for the high of the day, I bought in at a price of $1.85.

From there, I rode the stock up to a price resistance level I identified at $2.00.

So, when shares popped through that spot on heavy volume, I took the opportunity to sell into that strength and lock in my profits at $2.02.

That prior resistance came from a look at the daily chart where you can see the stock selloff from just below $2.00 ($1.95 to be exact) a couple of weeks ago.

But there was also another reason I took profits there.

At the time, the broader market was selling off and feeling a bit heavy.

I figured that selling pressure might spill over, so I went ahead and locked in profits.

Now, I could’ve taken most of the trade off and left a trailer to try for more with a stop at breakeven.

That’s up to each individual trader.

The Bottom Line