When the newsletter comes out, the VolumeBot newsletter will shine a focus on stocks with all or some of the following:
- Big changes in daily short volume reported to FINRA, thus showing potential shifts in market maker sentiment. By virtue of their position, market makers have a good pulse on supply and demand.
- With catalysts ahead that could potentially be positive or negative, such as stocks that might not have enough cash flow to cover their dividends for stocks to avoid, or stocks that might raise their dividend, and thus act as a positive catalyst
- equities that have a lot of growth ahead, or value stocks that the market is for some reason overlooking, either because they are new or because Wall Street just doesn’t’ cover them.
- stocks that are benefiting from various technical patterns, such as support from the 200 day simple moving average or if they are trending up steadily and it’s a self fulfilling prophecy
- stocks that have interesting total short volume changes (total short position being the data that is reported to NASDAQ biweekly and that accurately indicates bearish sentiment). Stocks with high total short volume are generally more susceptible to short squeezes in the short term if there is unexpected positive news. In the long term, the highly shorted stocks might do so well however.
- stocks where the risk and reward is good, generally for a swing trading or a long term timeline
With that said, there is no magic bullet in terms of indicators, and the VolumeBot market maker indicator that tracks daily short volume reported to FINRA is no magic bullet. The newsletter isn’t either but the hope is that it educates and gives investors more of a initial point to do more in depth research. Sign up below: