10 Dec

How I used Merger Monday To Make A Fast $30K This Morning

by

Market opens…

… 15 minutes pass

And I’m now $40K richer, off trades I alerted clients about days in advance.

You see, while the talking heads are trying to figure out if we’re headed into a bear market or if an end of the year rally is on the way, I’m sticking to the basics.

For me, that means patterns, value, and catalysts.

By narrowing my focus, I’m able to have an edge.

Trading stocks can be overwhelming to anyone when they get started. However, I’m living proof that you can have success by being able to do a couple of things really well.

 

I Love Mondays!

 

While most traders on Friday are looking at their calendar and prepping for the weekend, I’m sifting through my watchlist of stocks trying to find Monday’s next big winner.

Why?

Well, I’ve noticed a pattern that’s been pretty darn consistent over the last couple of years – stocks that have had recent catalysts have a higher likelihood of coming out with news over the weekend or on Monday morning.

Here’s the thing, most small-cap and penny stocks get ZERO coverage from wall street analysts. Since these stocks don’t get coverage…there’s a lot of money being left unnoticed.

Chances are, you won’t hear about the stock until it’s gapped up massive.

You see, companies have an extra two days to put something together over the weekend. They’re working on deals, press releases, and corporate actions, whatever the case may be…and you never know which Monday you could be waking up to Wall Street’s biggest winner.

Here’s how my thesis played out recently:

Veritone Inc (VERI) had interesting price action on Friday and I actually traded it during the day…locking in $3K in early profits.

VERI has been a rumored merger and acquisition (M&A) stock for some time. Additionally, it’s an emerging artificial intelligence (AI) company, one of the hottest growth sectors in the market.

Heck, just a few weeks ago, VERI was on my watch list.

I spotted a pattern in it and figured this stock was going to be in play sooner or later. Now, if you want to see how I’m able to spot these patterns and trades, you can access your free training here.

I came back to this stock just the other day because it found some support – a price VERI had a tough time breaking below.

I saw a buying opportunity in VERI on Friday with the $5 area holding up well. Now, I bought the stock as a catalyst swing trade and here’s what I sent out to members in the MRM community.

I went into the weekend holding a couple of small-cap names into Monday. In a perfect world, I can be out of these trades in the pre-market, before the New York Stock Exchange officially opens for trading!

Well…here’s what happened with VERI.

This morning, Apis Capital Management announced its private equity fund submitted an all-cash offer to acquire VERI for $10.26 per share.

Well, the stock opened at $7.96 and I locked in over 40% within 15 minutes after the opening bell!

While most traders were chasing this gap up in VERI, members in MRM – and I – were cashing in on nearly a 50% win.

You see, it doesn’t matter what the positive catalyst is, you just need to remain confident and be positioned for these trades.

Now, don’t think of these trades as one-offs. These trades happen all the time…but you have to know when to hold em’ and when to fold em’.

Just understanding catalysts and knowing small-cap companies have a high probability of releasing positive news on Mondays has helped me build wealth over the years.

The diary of a real $ trader,

Jason Bond
JasonBondPicks.com

P.S.  Find out how my former student is helping others get their trading accounts get “jacked up” – showing them how to 10X their trading.

3 Comments

  1. johnny

    did you send out a sell signal on VERI when you took profits?

    Reply
    • Jason Bond

      I did, buy and sell alerts went out. But honestly, do you need a sell alert when you’re up 100% at 8 a.m. ET? My bigger goal is teaching people how to trade and taking action without me holding hands.

      Reply
  2. Hemant Mehra

    excellent …..trade it can happen

    Reply

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