Bulls on Wall Street: Stop Guessing. Start Trading.

We've been stuck in a tight trading range lately, so a lot of stocks aren't moving very much. But the great thing about the momentum stocks I most like trading is that they aren't dependent on the overall market being volatile. Instead, these stocks experience a fundamental catalyst, like some important piece of news or an earnings report, that brings in a ton of volume. I have a go-to list of stocks that have a history of going on big momentum runs; every day, I flip through this list and look for stocks that are moving. Rather than sitting and watching every tick in the market, I can trade these stocks and actually have an edge.

$GNC was one from yesterday - 10/27. On the daily chart, you can see that it's been heading towards lows that it hasn't hit in many years.

gncdaily

Then yesterday it gapped way down, due to bad earnings. I actually made two different trades on this. The first was an opening range trade. Oftentimes, when a stock gaps down this much, you'll see a reaction spike back up. Generally, these spikes fail and the stock continues lower for a time. True to form, $GNC spiked up and then rolled over again at $17.50. I shorted in the $17.20 area, covering into the flush.

gnc2

I continued to watch for a second opportunity. The stock climbed back up to the resistance level from earlier in the morning. When it rolled over, breaking that trendline, I entered again. Normally I'd scale out along the way but keep some lotto shares for the big homerun, but yesterday I had stuff to do in the afternoon so I just sold the entire position for a nice profit. To learn more about this trade, checkout the video HERE.

I also wanted to take a minute to tell you about my new mentorship program - Bulls Mentoring Program. I'm super excited about this! For years, I've gotten requests for additional, in-depth, 1-on-1 mentoring that goes beyond even what we offer in the 60 Day Bootcamp. You'll get a 1-on-1 mentoring session every week, a new class session a week, a private chat channel where you and the other mentees can ask questions throughout the trading day, and time each morning before the market opens to hear my plan for the day. You'll also be invited to visit me in Destin for a week of intense trading and study time. Sound like something you'd be interested in? Shoot me an email at kunal@bullsonwallstreet.com for more info!

About Kunal Desai

Kunal Desai is the Founder and Lead Instructor at Bulls on Wall Street. Since 2010, Kunal has helped thousands of traders reach their trading goals through his unique live trading courses. Kunal is a day trader by day and industry leading instructor by night.

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