Long Term Investor Alert

ADMA Stock

The broader market appears to be in a classic bear market rally - a temporary upward movement before continuing its downward trajectory. Of course, nobody can predict market movements with absolute certainty.

We're currently navigating an unstable environment, yet ADMA presents a compelling setup. Given these conditions, you might consider sitting this one out entirely or proceeding with strict stop-loss discipline.

ADMA stands out as one of the strongest performers throughout this bear market. The company has delivered exceptional earnings and is breaking out of a 7-month base pattern. Historically, these base formations often precede substantial 300% price movements.

The challenge is that this promising setup is occurring within an unfavorable market environment. Remember that market conditions typically drive overall stock performance, with approximately 80% of stocks following the general market direction.

ADMA Daily Chart

ADMA Earnings

Your Simple Action Plan:

For these long-term trades, I would risk 0.5% to 1.5% of my account. Given the current market conditions, limiting risk to about 0.5% of your account is prudent.

For Long-Term Investors (3-5 Month Hold):

  • Stocks has gapped up 10% this morning

  • Remember: Quality gaps rarely close (use the gap as your stop-loss)

  • Buy at market open

  • Hold until the 50-day moving average is violated

  • Perfect for those with limited time to monitor positions

For Active Swing Traders:

  • Use a tighter 5% stop-loss

  • Follow our selling guidelines on the resources page for optimal exits

  • More active management required

Regards,
Valentine

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