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It’s been a wild few weeks as far as hours put in, the new 8AM became 7AM which became 640-650AM which is fine but when you’re used to taking your dog for a walk pre market before anything happens, relaxing a bit, getting focused etc — it definitely starts to catch up needing to be there at the early hours not even to trade just to secure the borrows on what is likely going to be major movers on the day. The good news is though, that there is also plenty during the day as of late so even if not up early there’s always a lot to choose from.
When the market is this active sometimes that makes things difficult right? We want to nail them all – we lose focus but we have to remember one thing … Go back and look at your trades your big wins right? You’re prepared for them right? 90% of your gains likely come from 10% of your trades? What does that tell you? ….. It says f**king relax! Wait for your trades to come to you — focus — trade what you know. Yes you can venture out and trade them all but a lot of times you’ll be working and burning out faster than you know. FSLY was a perfect example last week on being prepared for it – heck one of those a month can make my year. It served as a reminder to me that you should be letting your trades work for YOU not work for your trades. I see so many trades post charts with 9,000 entries and exits. This is not trading. This is mad man burn out central. The BEST traders I know, and I’m not just saying the BEST as in just a guy I know who is a good trader I’m talking guys who consistently pull $5-15 mil a year let everyone else scalp around them and focus on the macro idea.
Review your trades. Are you trading too much? It’s time to focus what makes an A+ set up an A+ set up. This is what we focus on regularly. Understand the difference between joining trend, scalping around here and there and the A++++++ set up. Even ONE a month can make your year. This is why we scan daily, this is why we review trades (where they went, if they’re setting up again etc) because in due time, the trade will come.
Video Scan + Game Plan
Stocks to Watch
ELTK really nice opportunity on Friday on the early fine we knew it was a former runner (showing 3 month chart but check 6 month if you haven’t seen this name before – that’s the easy way to tell). So this thing has earnings Wednesday AM pre market they said in a PR – you need to be aware of that. There may be a nice fade trade off a gap tomorrow it was $7 AHs with a large bidder 40K into 8PM so it was a no joke ramp after hours not just some small prints. If it doesn’t yank on earnings – then we have potential for a bit more action. Be cautious Wednesday – trades for me is TOMORROW and Tuesday after EPS not before!
LCI craaaazy squeezer I got a lot of PMs last week asking me pointed questions about “man tough tape?” “Geez, it had a lower high etc where do you think its a short” etc … problem here is EVERYONE was super biased — super biased in ONE direction. That was short. So, it actually wasn’t tough tape it was actually a standard grind but everyone had such a strong bias to short it that they didn’t let the trend tell the story. This happens A LOT for me as well, but the key is to recognize it – note your KEY levels and if things are holding trend and way stronger than the sentiment than take notes, recognize it and stop trying to fight it or better yet join the trend! Just my two cents on a situation like this. For this week – I almost think we got a bit ahead of ourselves last week so I’d be looking for a fade back to mid to high $9s, not quite sure we get mid $9s but I do think we can get morning failed follow through and then don’t try to be a hero and get bottom – take the trade along the way focus on the MEAT of the move. Things are not FULLY dying right now, check FSLY rally or SHOP intraday rally etc. Key is to find that middle ground between confidence and conviction vs. greed.
RAD clean trade on Friday I got long shortly after open and added along the way but yes trade was good but didn’t get much traction just solid steady grind which is totally fine if it’s a trade on the side of others — so I’d be looking for weak open vs. $6.30s for $7 +
SONO clean trend as well – dips vs $14.20 I like for a long otherwise looking to trade back side of the move all pops for failed follow through.
IMUX swing really gaining now – as you guys know I’ve been in since $9 (if you’ve paid any attention to the weekly scan and/or Twitter) sold a few of those big break outs and added around the core high $11s average now — we’ll see. Big levels coming up again but barely any volume which I’m totally cool with if it goes up a buck a day LOL
FSLY again much like LCI everyones first thought is ITS A SHORT etc. Stop, relax, focus. Trend is still ripping, all shorts are STILL stuck we talk a lot about thinking about where shorts are stuck from – if coming in on the week we knew shorts were trapped and then it went $25-27 then $35 but came back and still held $27 — yes shorts are still trapped. So, keep that in mind and don’t get too biased on one side – let this trade tell us what it wants to do. You likely saw Friday’s short trades on it that I posted — if not check Twitter but the key here was I wasn’t trying to think it “had to pull back” and “had to stay a short” I traded it, keep bias out, react to the opportunity and be patient AFTER VWAP confirms 945-10AM + and many times you’ll see it MAY not – just like Friday. Key is understanding WHEN the range is going to happen and WHERE our edge is.
INSG stready runner all of Friday watched it for the most part I did get short off highs for a nice fader into the close but I think we’ve got a lot more here. I think we have either a weak open about .10-.15 or so rally back $4.50 to $5 + or morning shove and Friday just was an odd buyer / cover and watch for failed follow through vs. VWAP 945-10AM +
TLGT from scan on Thursday night – idea worked well so far. Nothing to chase watch dips and rally back moves.
OSN can easily get going again $5 + but its tough tape, thin and nothing I like. There is a good chance that I don’t trade it but just in case a PR and/or vol comes back I want to be familiar with the chart.
PDD morning shove vs $33 for unwind or weak open $32.60s base for r/g and ramp
PUYI still no trade for me but as spelled out I am watching for a MTC situation hopefully it fades another 50% or something and the day it has 1-2 million volume wake me up – I’m interested.
EROS nice idea from scans last week so far been up each day since the idea. I am hopeful for some pull backs I’d like to position vs. mid $1s for possible break out if it gets some volume / PR / momentum
HOME staying familiar — thinking .50.-80 trade in it soon ideally on the short side.
AOBC goal of $6.30s + shove then fade off possible mid to low $5s – if it’s holding over VWAP 10AM + forget it.
PSTV not a name I love, not a name I think WILL squeeze but a name I don’t want to forget JUST in case because as it squeezes out everyone starts to unbox their short, get more aggressive and you know what? All it takes is a PR / 2-3 mil volume to get it churning to 4-6 mil vol again and we’re back as a possible crazy squeeze. Again, I am not long biased and I am assuming it fails BUT I am staying FAMILIAR with it in the event it does a secondary move when people least expect.
BIG transitional day on Friday — not going in with a bias but I think we can get a $1-2 maybe $3 move here either way. More in the room likely a main watch.
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