$7,000 in 3 Days With My IPO Strategy

SDGR was a hot IPO in early February.

It’s next to impossible to get shares of a hot IPO before they go public as institutions grab the lion’s share of the offering.

This is why I created my Hot IPO Strategy in the 1990s.

The idea is to wait for the stock to drift back after the hot money

Flips out over the first week.

I wait for 2 to 3 consecutive lower lows and a contraction of range to indicate stabilization and that those who wanted to sell have sold.

This is where I anticipate a turn up in the stock and start to accumulate shares.

Last week, Hit & Run members took SDGR at 27.90.

It went a little lower, bottoming at 26.06 on Friday.

Monday, it closed green, which was the tip off to Tuesday’s explosive 4 point gain.

Wednesday, SDGR tacked on another 4 points plus

And we sold the balance of our shares for a 7.50 gain.

The nature of price behavior is to breath, to inhale and exhale, to contract and expand.

When a hot IPO contracts, the presumption is volatility is on the verge of expanding.

As you can see with this example in SDGR, this plays out not only directionally, but in the size of the bars.

Typically, our method breaks down such that we advise at least a 1000 share position on a stock that 50 or less.

A 1000 share position in SDGR resulted in a gain of $7500 on the sale of the balance of our position on Wednesday.