Here’s how we traded Co-Diagnostics ($CODX) from $15.17. (May 13, 2020)
CODX
I want to look at CODX, Co-Diagnostics ( NASDAQ: CODX ), This is a stock that has been on our Growth Stock List. We first got into this on 5/8, just this last Friday; right here, when it started pushing above 15.00. I had traded it a few times before starting there. On 5/8 we got into this and the rationale was, this is a COVID 19 stock, this is the way it was setting up.
You can see, this is a kind of textbook setup; the best entry was back here. That was the time when you go; Oh crap this thing is going someplace. You could even say back here was a good entry; if we really want to get anal-retentive and revisionist we can go back there. But this was a time when you could look at the stock and say, Okay; I like the way this is trading. This big explosion was the big tip-off but there are plenty of entries here.
Now we are here and you are looking for 15.00, right? You are looking for 15.00 and finally it comes here, right there. So you are in here and the idea here is that institutions are buying the stock and nobody knows when earnings are. And then the stock keeps moving up, 8-day moving average, and then we are looking at this level here, this last high of 21.75. That’s the ultimate parabolic high; that’s when all the fools were buying this right at the top and they are the ones that have been selling for the last couple of months.
So now you are saying I am going to be a seller of this stock when it gets back up to that level. And boom, there it is, that thing is back up today. But you don’t sell the stock. And the reason you don’t sell the stock is, literally, the stock is still moving after hours. It just keeps going higher and higher and higher. Now, yesterday the company announced that they are reporting earnings after the bell tomorrow. The way this stock is trading, seriously, my price target was 20.00, the way this stock is trading it would not surprise me to see this stock hit $30.00 tomorrow.
I am looking at this really, really hard as a day trade. If it hits 30.00 tomorrow that’s going to be a double for us on our Growth Stock List. We have had a couple of others that have been really good but this could be the best. I don’t know that it is going to be; the thing might be at 15.00 tomorrow. But the way this momentum is going I would say if the stock trades above 25.00 my bet is that it will be going to 30.00 tomorrow. So that’s your trade; you see how that works.
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