SmallCapLab.com

$EHGO gapped 50% and closed -33% today. When a 30%+ gapper touches previous day close intraday, the average close is -12.5% below it. Median -8.6%. Unfortunately, only 5% of gappers get there. Big ifs, but IF the frequency were higher, locates cheaper, and fills easier... There would be edge... If you are already short... do not cover.

AMEX fades the best, but $PLAG will make you avoid them forever... You need something to blame. "scAMEX" they say.

$KIDZ is cooked

Do gap-ups that start the move the night before move differently than ones that start on the day of? Surprisingly no. Nearly identical.

71% of small cap gappers fill the gap within 36 hours. 77% within 5 days. Too bad locate fees exist.

$RKTO $JLHL - Execution rules are the foundation of long-term survivorship.

Duuuddde, check out those waaaves

High of day 5-min volume climax and dollar volume climax... "interesting stuff" The high is a liquidity event. The low forms quietly. We all already knew that, but what would happen if the rolling HOD dollar volume sum was the entry? smallcaplab.com/strategy

Some of the biggest P&L numbers in the HTB space very likely came from martingaling during a good period, but many of them are still respected and highly regarded. Maybe they should be. Short at the trigger → Add every 30 minutes if price is greater than prior entry → 10% account max loss stop per ticker→ Compound daily. Multiple blow ups, excluding fees... Maybe better than playing the lottery?

Locate costs have been all over the place, though the averages are probably skewed high. People submit when they pay a lot, but don't bother submitting when it's ETB/cheap, which is fair. Looks like @sagetraderusa is leading, with @TradingGuardian and @cobra_trading battling for 2nd and 3rd. Feel bad for @CenterPointSec — not enough data yet, but they're def a top 5. If you got a locate today, submit it (free/cheap ones count too): smallcaplab.com/locates $AZI $DCOY $LGCL $BTOG $PETS $UPC $TNMG $STI $SDOT

scAMEX is a myth, HTB folklore. The same traits that make AMEX stocks "sketchy" (looser listing standards, weaker fundamentals, etc.) are exactly what make them a bit more reliable faders. smallcaplab.com/research

Prior few weeks, China names did some damage, and maybe they are worth avoiding... I won't be... Yet. China out, but foreign still in. And no, I am not going to search the filings for Chinese sounding executives.

Whoops, shared the wrong graphic. HERE is the week one PDT effect.

PDT removal, week one update: How has it affected small caps? As expected, a lot more events, volatility, and ~2x dollar volume. Guess what? Intraday runners and gappers are still fading and strategies still working. Not what the perma-sad HTB mob told you. I hope they are okay 🫂 💘 smallcaplab.com/research

Have somehow have caught THREE intraday offerings within the prior 4 weeks. ($JUNS, $NEXR, and todays $PAVS) V rare. Hope this occurrence is a new trend... Who coulda known...

Dear HTB mob, am I allowed to share this? In-play small cap gappers: does profitability, burn rate, and imminent dilution matter for short-term price action? Cash-flow-positive names fade less and continue more, but they still fade more often than not. smallcaplab.com/dilution