WSW presents⦠The Secret to Trading ANY Stock - Supernovaâs arenât just for penny stocksâ¦
- The mistake that short sellers ALWAYS makeâ¦
- Once you understand this doors will open⦠We talk about penny stock patterns a lot. No big secret that the [supernova]( is one of our favorites. And as the weather is heating up, so is the market. Lets recap one of the largest supernovas of the last year -- Karuna Therapeutics, Inc. (NASDAQ: KRTX). Now, after looking at the KRTX chart, you may be thinking ⦠âBut KRTX isnât a penny stock â how can it be a supernova?â Weâve got news for you, trading patterns apply to any stock in any market. [Pro tip: Learn the supernova pattern here!!]( The key? You have to completely understand the patterns. We're not talking about briefly reading one or two of my articles. Once you understand the pattern, you donât have to stick to just low-priced stocks. You donât even have to stick to U.S. stocks. We've heard these patterns can work in China, the UK, Germany, and Australia. Hell, we even have followers who use these patterns on crypto stocks. Again, the key is to understand it. And once you do, open your mind to all the places you can use it in the finance industry. KRTX Supernova: Day 1 On the morning of Monday, November 18, KRTX published a press release about one of their Phase 2 drugs. The drug, designed to treat acute psychosis in patients with schizophrenia, met the primary endpoint. For biotech companies, the phase results can be a huge catalyst that makes or breaks a company. The press release was exactly the catalyst KRTX needed to start its colossal supernova run. The previous Friday, KRTX closed at $17.80 and began to gap up once the press release hit the wires. KRTX opened at $32.50 and immediately began to have a morning spike. Despite being a higher-priced stock, KRTX had a low float, allowing it to reach a high around $100 on the first day of the move. I canât tell you how many people I saw in chat rooms saying, âIâve never seen anything like this, it has to crash.â A lot of over-aggressive short-sellers kept trying to predict the top. When KRTX started to consolidate around $65, they started saying, âThis is definitely over!â But KRTX was up from roughly the $30s to the $60s. Rather than waiting for the backside, they all started to short midday⦠⦠and they all got crushed into the afternoon. The stock didnât spike a little, like $65 to $70. Oh no ⦠It went full supernova â it went from $65 to $100. Then ⦠even at $100⦠the shorts were excited thinking $100 was the top. But it curled back around and tested highs again into the close. Let this be a lesson: Donât short and think you can guess the exact top. Never underestimate the power of a supernova on its first green day. KRTX Offering: Day 2 Shortly following the close on November 18, KRTX execs filed a [financing for 2,600,000 shares](. The company needed money to fund the third phase of its study and work toward full FDA approval. So, they tapped into the public market. Financings are standard for companies after an extensive run. Financing firms often give them more money due to their higher share price. And these financings arenât necessarily terrible for a stock price. Companies simply need more money for research and development, and financings are the easiest way for a company to acquire a large amount of money. But sometimes shady penny stocks get trapped in toxic financing deals, which is devastating to shareholders. Typically, the offerings attract short-sellers because an offering is a negative catalyst. So, the remaining over-aggressive short-sellers who didnât blow up their accounts on the first day of the move started to short KRTX after the offering. [The same thing happens with every supernova]( ⦠too many short sellers are too early. The excess of short-sellers squeezed KRTX even higher on the second day. The offering created a little gap down on KRTX. But on the second day, KRTX hit new highs of $152. What's Next for KRTX? Where do I think KRTX will go next? Honestly, Iâm not sure. It has pulled back since the 18th, but how far it will fall, I donât know. If there is another bit of positive news about KRTX, It could go higher still. The lesson here, and I canât say it enough: You never know how high a short-squeeze supernova can go. In only two days, the powerful KRTX supernova started at $17.80 and hit a high of $152. Thatâs nearly 10X move in only two days! Itâs unlikely someone held the entire time, but many of my followers took the meat of the move and locked in their singles along the way. The Bottom Line Even though, I never personally traded KRTX because I prefer to stick to lower-priced, OTC stocks, many of my followers did. They took the patterns I teach and applied them to KRTX. These followers studied hard and prepared for this play. Supernovas like KRTX donât happen every day, but you should always prepare for them. Penny stock patterns donât have to just be for penny stocks. KRTX is a stellar example of the supernova in a high-priced stock. Talk to you tomorrow, Editor, Wall Street Warrior P.S. Completely miss this Supernova? Don't let that happen again... [Click here and set aside 5 minutes to learn how to trade the next penny stock supernova from Millionaire Trader Timothy Sykes.]( This single pattern is responsible for most of his $7 million in trading profits. It's created over 25 millionaire students... Will you be next? [Click here to take action today.]( K2 Financial 66 West Flagler Street STE 900 Miami, Florida 33130 United States This email was sent to {EMAIL}. Don't want to receive these emails anymore? [Unsubscribe]( [Privacy Policy]( | [Terms]( | [Risk Disclosure](