Here’s how I’m trading Co-Diagnostics ($CODX). Maybe this time it’ll work!! (June 23, 2020)


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I want to look at CODEX ( NASDAQ: CODX ) today, here’s why: the stock had a really, really nice move off the 50-day moving average. Now, you have to be careful about this stock; I’ve been in it I think 3 different times, I made good money on one of them and lost a little money on the other two. And it would be perfectly rational for you to say, why didn’t you just buy it and hold it Dan; it’s forming a base? And I would say, you know what? Honestly, that’s a darn good idea. I just didn’t do it but in hindsight, of course, I should have done it.

The issue with this stock though is, this is like a little teeny move here, oh yeah; this is good. A really good move, it opened at the 50; it ran up, it closed up a couple of bucks, that’s really cool. It was 12 percent it closed up a lot. And so when you are trading a low-dollar stock like this the percentage swings can really get you. And so I just kind of got shaken out of this stock a few times. I like it here; maybe I will get shaken out again.

I took a small position today but I see the way this stock has traded here. Last time it shot up again here too, pretty decent volume and then ultimately it faded. So now we are back here again; well, the stock is at a new high. It hasn’t been this high in the last few weeks, right? And so I like the fact that we got really, really strong volume, really high volume and I think the stock is ready to blast off.

So this is what I would do, if you were not long this stock: The high was 18.88, frankly, I would wait for $19.00. If it trades above there and it holds there, then that is when I would start a position, start a small position, and then wait for it to hit $20.00. And it has to break out and hold $20.00 for me to then take a bigger position.

This is a note I made to myself a while ago. The idea here is, this stock ran up, caught a lot of people. Just remember on this huge volume, everybody who sold a share sold it to somebody who bought it. So there’s a lot of trapped bulls that are still way underwater on this stock and I think it has just taken quite a while for them to kind of finally, one by one, one share by one share, give up the ghost and go ahead and sell. And so at some point, all of that selling is going to be done and then we are going to get a bigger move to the upside.

I seriously don’t know whether this is starting, I couldn’t tell you, I wish I could but I am not going to insult your intelligence or your pocketbook. I am just saying, I am trading it this way, I am taking a small position and what I just mentioned about 19.00 and then $20.00, that’s exactly the way I will trade it. But I am not going to anticipate it and say, oh, I will just buy a boatload now so that then when it does break $20.00 I will already be really in the money on a big position.

If I knew that it was going to break $20.00, that’s exactly what I would do. But I don’t know. And so don’t confuse hope with knowing because there is a big difference. And that’s the thing that a lot of traders deal with; hope and change, I hope that the price changes and that my fortune changes. But that’s not the way you want to be trading. You want to be trading on what you are seeing not what you are hoping you are going to see.

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