Hello, Barrie Einarson from Trade Ideas here, bringing you today’s edition of “What Makes This Trade Great.” To Subscribe: https://go.trade-ideas.com/SHQ
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It’s always a fantastic feeling when a trade plan comes together, following through on what you envisioned might happen. Today, we’re focusing on CNEY, a small-cap stock that caught my eye in the pre-market. You might wonder, “Why CNEY? Why focus on this cheap little stock?” Let’s dive in and explore why this trade was on my radar.

The Setup: Why CNEY?

CNEY is a low-float stock from China, and here’s why that matters. Yesterday, I noticed it was super active in the pre-market. But my real interest in CNEY was sparked by what happened with QH the day before.

QH is another low-float Chinese stock that experienced complete market madness. It started the day before yesterday as a 43-cent stock and closed at $1.48. In the pre-market the next day, it spiked to over $3, with market hours seeing a high above $2. That’s a significant move — from 31 cents up to $2.27!

My thought process was simple: If QH, another low-float Chinese stock, could make such an explosive move, why couldn’t CNEY do the same? In the pre-market, I saw CNEY trading significant volume, around 214 million shares — not far off from the 300 million shares QH traded.

The Trade: Timing is Everything

Now, here’s where my strategy kicked in. I have a personal rule: I don’t take stocks that are trading under a dollar. It’s just a mindset I’ve developed over time. But once CNEY crossed the $1 mark, I pounced. I switched to a five-minute chart to monitor the action closely.

I’ll be honest — I didn’t catch the perfect entry right at $1.02 or $1.03, and I didn’t hold all the way up to $1.38. But I captured enough of that mid-range move to make it a fantastic trade. It’s all about getting in and out at the right moments to maximize gains, and this was a great example of that.

The Potential: Eyes on a Late-Day Run

Now, what am I looking for next? I’m hoping we see some renewed enthusiasm later in the day. Right now, the volume has tapered off, but if CNEY can take out its high of the day, we might see a late-day run similar to what QH did yesterday.

Remember, QH didn’t start its big move until around 3 PM, jumping from 80 cents to $1.47, and then continuing its craziness after hours. Could CNEY follow in its footsteps? I’m not sure, but I’ll be keeping a close eye on it for any signs of life. Check out my homepage for more information.

Stay tuned, keep your eyes on the charts, and join me back in the trading room. Let’s see what the market brings us next!