Last week we discussed how to prepare for a week after a move like CXAI. Traders will be timid shorting, they’ll be chasing long and likely a pretty good week of opportunities. And, it surely was.
Why? Because everyone wants to catch the next one. Only a few will have a second leg, most will fail.
We had a bunch of liquidity traps – why and how do we prepare and identify those?
- Long Crowd
- Liquidity Traps
- Delayed Failed Follow Through (SAI PRST)
- NYC Poker Tournament
- Summer is Coming – Be Aware!
First of all – great comments all around I picked a few extra this week and good to see lots of new faces leaving comments. I will do same next week and every week. More good key takeaways I can’t just pick one 🙂
Here are the winners:
Video Scan and Game Plan
Stocks to Watch
SFR for whatever reason BigCharts doesn’t display it correctly but the rest of the charts do. Big move Friday – reminds me of GCTK had a nice squeeze out AHs – offered a decent trade in the same range as GCTK before failing off. SO, now, it’s all about them baiting shorts pre market Monday if it stays relatively heavy and swipes back and soaks HANDS OFF, if not, then unlikely to be as crowded as GCTK. Just be prepared/ready for both.
MARA and RIOT on watch for a decent gap down, flush and then rally day. These are mean reversion plays which yes overall I should have been a bit more active on and I’ll go over why on the video but there’s still going to be some big trades here, a lot like AI concept we’ve been going over the last few weeks anticipating the teens.
PRST nice liquidity trap / buy in idea on Friday big squeeze out. Ideally $4 re-test and then fade off. If everyone is doing the same thing keep in mind we could have a secondary move like SAI until the crowd passes before the proper trade set up. Always keep that in mind especially in a post 2020 market where there are so many traders soaking dips.
SNAP looking to join trends 945-10AM + if starts to fail to follow through.
Failed Follow Through:
CNSP nice game plan last week Thursday and Friday. Clean unwind pretty perfect set up the tough part is just the liquidity once the move happens. This, like SAI – same concept you’re seeing it more and more – how do you prepare? We’ll discuss. Ideally morning shove opportunities and back sub $1.50s short term.
BFRG morning shove vs $7
AI higher better and still thinking teens is the destination. We’re already here but good chance few more shoves before $15-17 short term.
CLSK morning shove possible fade back sub $3.50s
RPHM setting a price alert on this one looking for blow out move for the unwind day. Check the volume though, this is no A+ set up – this is a smaller high probability trade when the trade sets up.
TOP wash volume for the month so far – just creating the appearance it’s liquid even though it isn’t. I believe they are placing stock before they promote it to the masses to create real liquidity (to the downside)
IBRX last week we went over this as a potential swing/big picture trade so far working well. Ideally $3 blow out before unwind.
OCUL another set up from last week – continuing the break out test. Watching w/ this volume to see how it reacts on $6.50 – does it continue to break out or reject hard? If dips soak next few days could set up for a real nice break out.
MULN thinking .12-13 up to .15 max prob potential but bought dips into close for a gapper Monday figured lots of pumps over weekend and ditch into any fast move up (not an investment just a flip)