I can’t help but include WAMUQ in my $.01 – $.25 watch list Monday morning with all the hype surrounding this stock. Maybe it’s May’s 460% 8-day tear that commands my attention or maybe it’s because the days to cover on this turd is 15 which could pack a lot of punch on a $200m market cap.
If you simply look at the price action Friday, one can’t help but think WAMUQ is setting up for another continuation run here the $.20’s short term. With support at $.12, $.10 and $.09 the risk reward is excellent for momentum based traders like myself.
Friday’s volume was light in comparison to the previous sessions but it moved WAMUQ up 17%. Keep in mind light was still just shy of $1,000,000 in volume.
Shares ran out of the gate Friday, dipped and then drifted higher before squeezing some shorts into the close. If enough hype builds over the weekend some deep pocket shorts might give WAMUQ the lift it needs to get through $.15 on it’s way to the $.20’s again.
Keep in mind there’s $2.50 / share in margin required so only deep pockets are short this one and you can bet Friday’s price action might encourage some of them to cover Monday morning.
I’ll be watching to take a short term position, will you?
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