How I'm Trading 2 Small-Cap Names

SoFi Technologies (SOFI) 

This past Monday, two days ago, I informed readers that I would be selling something off of my long position in SoFi Technologies (SOFI)  after the stock had rallied off of the lows where we had increased those positions last week (on which readers were kept informed). 

On Monday, at publication, SOFI was trading close to $21.40. This is the chart that I provided at that time:

Now that the shares have given back more than $1 since that piece was published, it's time (for me, as I tell you what I do, not what you should do) to start adding those shares sold earlier this week back on. ​ 

My intent is to add those shares back on from here down to the $19.19 low from last Thursday. ​This is what we call trading around a core position while that position is struggling. The object is to have that position produce revenue even when the core does not. This kind of trading is heavily reliant upon short-term technicals and news flow, not on fundamentals.

Ondas Inc (ONDS) 

Ondas  (ONDS)  is one has taken a beating since I have discussed it publicly and the firm do not report until March, so this volatility could continue. 

The last item that I can see that I published on this name was for Doug's Diary back on January 23. That was when I warned investors that a head-and-shoulders pattern of bearish reversal was just starting to take shape. I took the target back down to $13.50 at that time. This is what I imagined at that time with what information I had and my projected path for the share price:

This is what ONDS looks like now:

Readers can now see that the head-and-shoulders scenario played out well. ​Relative strength is weak but not too weak. The daily MACD has also gone to the dark side. My plan? To add from the downside pivot (around $8.40) all the way to the 200-day SMA (around $5.80, while doubling the position in size.

At the time of publication, Guilfoyle was long SOFI and ONDS equity.