Coronavirus has increased the demand for face masks. A buy signal was given by The Arora Report to buy the stock of face mask maker Alpha Pro Tech (APT) at $10.02. Three days later in the pre-market it was trading at $47. This has been a very profitable quick trade. This is a chronology of the posts published on ZYX published on ZYX Buy Change Alert.
SIGNAL LIMITED: TWO NEW IDEAS ON APT AND LAKE
If the CDC warning about community spread of coronavirus in the U. S. turns out to be correct, there will be a shortage of face masks and protective gear. Alpha Pro Tech (APT) and Lakeland Industries (LAKE) are high risk high reward trades suitable only for super aggressive experienced investors who can handle potential losses. Most investors should stay away from these trades.
Also these trades will work only if either there is community spread or there is a short squeeze. Note that often such short squeezes start in the after hours.
APT
The buy zone is $8.70 to $10.36. It is trading at $10.02 as of this writing. The stop zone is $8.18 to $8.33. The first target zone in a short squeeze is $14 to $16. The second target zone is $22 to $26. Keep the quantity very small due to high risk but not exceed 20% of full core position size as there is a high probability of the trade not working.
LAKE
The buy zone is $14.50 to $16. It is trading at $15.73 as of this writing. The stop zone is $13.60 to $14.23. The first target zone in a short squeeze is $19 to $20. The second target zone is $27 to $35. Keep the quantity very small due to high risk but not exceed 20% of full core position size as there is a high probability of the trade not working.
Caution
If doing both trades consider limiting the total combined quantity to 25% of full core position size due to very high risk.
SIGNAL LIMITED: APT: 82% GAIN IN TWO DAYS ON THIS FACE MASK MAKER
Alpha Pro Tech (APT) was purchased two days ago at $10.02. It is trading at $18.19 in the pre market as of this writing giving an 82% gain. The stock has gapped open above the first target zone. All subscribers should consider taking partial profits right here.
The second target zone was $22 to $26. However that target might be reached only if coronavirus spreads or there is a short squeeze. Both have reasonable probabilities of happening.
Special note to new subscribers
It is the subscriber’s responsibility to take profits and honor stops. Typically stop zones and target zones are given in the original post. Please also see Trade Management Guidelines for default stops.
Typically, new posts are not done when a stock reaches the target zone or stop zone. However new posts are done when there is a reason such as new information.
SIGNAL LIMITED: APT: RAISE STOPS ON THE REMAINING POSITION IN THIS FACE MASK MAKER
Alpha Pro Tech (APT) is a very volatile stock. There are two options based on personal preference.
- Raise the stops on the remaining position to break even. This option will increase the likelihood of not getting stopped out if the stock eventually moves to the second target zone previously given.
- For those who want to protect the remaining profits, consider a stop zone of $14.73 to $15.38.
Those with small accounts and do not want to take additional risk may simply consider taking profits on the entire position right here. It is trading at $18.78 as of this writing but has traded as high as $19.60 in the pre-market.
SIGNAL LIMITED: APT: 150% GAIN IN TWO DAYS ON FACE MASK MAKER, RAISING THE TARGET
Alpha Pro Tech (APT) has now over 150% gain. Short squeeze is in full bloom. In a short squeeze, APT can go much higher, perhaps $35 to $40 and even higher than $50.
What To Do Now
It depends on your own risk preference, here are the options:
- Take more partial profits. APT is trading at $25 as of this writing.
- Take no profits and continue to hold.
Keep the present stops if continuing to hold.
SIGNAL LIMITED: APT: 370% GAIN IN THREE DAYS DWINDLES TO 250% GAIN IN THIS FACE MASK MAKER
This is in response to your questions. Yesterday we wrote:
Short squeeze is in full bloom. In a short squeeze, Alpha Pro Tech (APT) can go much higher, perhaps $35 to $40 and even higher than $50.
That call has proven spot on. This morning in the pre-market Alpha Pro Tech (APT) stock spiked to $47 but has pulled back to $36 as of this writing. Alph Pro Tech was bought at $10.02 three days ago.
If coronavirus news gets worse, the stock has potential to spike to $60 – $75 zone. However keep in mind the flip side; if coronavirus news gets better the stock will tank. For this reason it is important for all subscriber to have taken at least partial profits.
Also in reviewing this position, take into account your position in protective gear maker Lakeland Industries (LAKE). Lakeland Industries and Alpha Pro Tech tend to move together.
The new stop zone for APT is $19 to $22.43. Those who want a closer stop may consider $29 to $29.43, but this stop will likely get hit. As a caution, stops may not help you because APT can gap down through the stop zones if coronavirus news gets better.
What To Do Now
Those not in the stock may wait for a signal on the Real Time Feed.
Those in the stock and have taken partial profits and are aggressive may consider continuing to hold.
Trades posted on The Arora Report Market Blog have produced unrivalled performance since 2007. Please click here and scroll down to see the table of all trades. These trades have been scrutinized in real-time by thousands of investors across the globe. This provides easy verification of performance for newcomers to this site. Only those trades are included in the performance where the entry post was made available to subscribers to The Arora Report Market Blog. When the entry post is made available only to the paying subscribers and not posted in real-time on The Arora Report Market Blog, the resulting performance of the trade is not credited in the performance table. There are very nice gains on this trade but since the entry trade was not posted here for the free subscribers in real-time but only made available to the paying subscribers, handsome profits on this trade will not be added to the performance of The Arora Report Market Blog shown on the table.
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