It’s a loaded query, proper?
Not each weekend play is gonna work.
Nonetheless, I’ve been buying and selling this sample for over 25 years and it simply retains occurring.
And if you get it proper, it has the potential to be a strong win.
For me, the bottom line is to be meticulous (and ONLY select shares that meet all my standards).
Which means listening to extra than simply “the inventory is up on a Friday, so I’m gonna purchase and hope for one of the best.”
And it additionally means not getting grasping, as a result of even winners can fail quick when the market opens once more on Monday.
Let’s check out my current weekend for a greater understanding of what I’m searching for…
Breaking Down My Newest Weekend Winner
On Friday, July 17, Southland Holdings Inc. (SLND) had a giant contract win by way of its subsidiary Oscar Renda Contracting of Canada…
Supply: Businesswire
SLND spiked properly on the information and held close to its highs for many of the day.
One among my standards for a weekend play is: The inventory must be closing close to the excessive of the day.
SLND’s common hours excessive was $1.22 per share.
It wasn’t probably the most unstable inventory (one other factor I search for), but it surely constructed help close to its volume-weighted common worth (VWAP) and saved testing the $1.18 space.
However is that sufficient to take the commerce? Perhaps.
Though this 1-year chart appears horrible, you possibly can see two issues that caught my consideration…
Supply: Shares To Commerce
SLND 1-year, each day candle, highest quantity in a 12 months, 52-week low hit July 10.
1. Friday’s quantity was the very best previously 12 months by FAR. With a float of solely 14.42 million shares, SLND traded 205 million shares on Friday (14X float rotation). In different phrases, merchants had been paying consideration.
2. It hit a 52-week low on July 10.
That’s counterintuitive, proper?
Why would I be focused on a inventory that hit a 52-week low solely every week earlier than it had information a couple of contract?
Even when it WAS spiking, is {that a} high-reward setup?
Give it some thought this manner…
The Firm Had Further Incentive To Shut the Deal
I do know I’ve mentioned this at the very least a thousand occasions, however I’ll maintain saying it as a result of it’s essential know…
Penny inventory firms are horrible.
All of them have to both elevate cash or have some huge catalyst to maintain merchants (or each).
There’s additionally an essential psychological degree at $1 per share. To not point out the opportunity of getting de-listed.
There’s no motive to assume SLND was at that time, because it trades on the NYSE American (previously AMEX).
So there’s no $1 per share minimal bid like Nasdaq shares. However even the AMEX can de-list a inventory ultimately if it trades too low for too lengthy.
Additionally, no firm desires to be a real penny inventory.
Which implies that if it may well get a strong contract win, you already know it’s going to hype the information going into the weekend.
And that performs completely into my Weekend Dealer technique.
Why?
As a result of though a variety of merchants had been paying consideration…
Much less meticulous merchants wouldn’t see the information till the weekend.
My Profitable Weekend Commerce
A part of the rationale I took the commerce is as a result of the contract the corporate gained is moderately giant.
It’s additionally a multi-year undertaking, which provides it a ton of credibility for related initiatives in different communities.
My purpose was for it to interrupt the day highs within the $1.20s and minimize losses if it couldn’t maintain $1 per share.
Supply: Shares To Commerce
SLND, 7/17/26 to 7/20/26, 1-minute candles, Weekend Dealer technique.
As you possibly can see, SLND did handle to carry $1 in after-hours and premarket buying and selling. And it did precisely what I needed it to do on the market open yesterday.
What’s occurring THIS weekend?
One among My All-Time Favourite Methods in Motion
Weekend trades may be very high-reward.
However that doesn’t imply they all the time work. Nothing replaces meticulous preparation.
Nonetheless, I’ll maintain taking trades like SNDL so long as they maintain occurring
The weekend commerce is one in all my all-time favorites.
When the setup is as clear as SLND, I’ll take it each time.
So what’s going to you be doing earlier than the market closes in the present day?
As for me, I’ll be looking forward to extra alternatives to purchase in the present day and promote on Monday for potential features.
If you wish to know what I’m watching (or get an alert of what I’m shopping for), click on right here now for particulars.
Cheers,
Tim Sykes
Editor, Tim Sykes Every day
