The market continues to fire up. This is no sign of stopping. Last week we had a bit of a pullback liquidity-wise on momentum names so swings of that nature sorta stopped floating up on air, consolidated or pulled back some across the board. While that slowed a bit we had some amazing setups on RIOT CCIV WATT and VCNX.
The key is to treat pre market trades as their own trades.
Off open it's important to get a true read for the trade. Dabble some and see what the market does and how it reacts. VCNX is a PERFECT example if you go back through the chat logs. Waiting, waiting, waiting, and then remember the big moves come AFTER the first move.
- Bet heavy bet last - VCNX
- CCIV when dip buyers become pop sellers
- 2021 Reality:
- Hunt the hunters
- Short hunters
- Never show full hand (Poker cards down or up?)
- Why I write plans the way I do: Does trade makes sense to you? Don't get it? Review
- Proof is there: Investment or trade?
- GME AMC CLOV SPAQ (FSR) NKLA
BAD TRAITS TO HAVE AS A TRADER
- Cautious of cult names (sheepherder & photoshopped images)
- Long or short? Make up mind
- We all start out same way - few make it (3 or 4 of 30)
- Engage etc.
- Psychological side of things - you've been trained.
This week I do have some "main watches" as usual but nothing I am like THIS IS IT THIS IS THE ONE I WANT like usual. I think it's going to be important to come with a clean slate, patience and without bias.
90% of people are making money in an industry where 90% lose.
Soak that in.
It'll come in handy when it's time.
— Nathan Michaud (@InvestorsLive) February 20, 2021
- Roberto Garcia
- Abdullah Ahmed
- Brandon Hanna
Video Scan and Game Plan
Stocks to Watch
VCNX pretty A+ set up on Friday literally carbon copy of CATB which I tweeted earlier - thinking it would follow in the foot steps. This was a case of the add add adders on the short side getting blown out. I would encourage traders to review the Friday chat and commentary on it. Zero sizing front side wait for the blow off move that we discussed and as reminded the key takeaway here -- the BIGGEST moves come AFTER the kill candle. Don't bother risking $1-2-3-4/share to be right wait for it, best to be .50 late than $4 too early. I would LOVE to see this gap up some - reason being ZERO reason for shorts to cover into close so it'd be nice if most held and we test their conviction lets a bit and give a better opportunity in the AM but my hunch is we gap down. As long as this doesn't form a base over VWAP 945-10AM+ I am interested in fading the trend. Most likely forget with whatever the flavor of the day is on Monday.
CAN going to start to play closer attention to would love to see this keep breaking out as noted I felt like CAN was a mini BTBT setting up for a similar move and here it is $25. Also said EBON reminded me of CAN and now MOGO reminds me of CAN too. That said although I may be looking for overextensions to nail on the short side I am not aggressive bearish or bias in any one direction. As you saw with RIOT wait for it, come in conquer NEXT.
VUZI Cathie Wood bought nearly 300k shares of this one and launched AHs along with I think a PR. Either way should get some momentum first part of the day squeeze out and over extend then fade back. I want that trade and MOVE on. If it stays heavy I can re scale but I want to assume this can act like a NNDM where it just continues to defy the odds of upside potential.
CCIV more headlines this weekend hopefully things pick up pace this week rather than one headline to the next rumors this and that. That's been the third or forth flush out into circuit halts we've seen on the way up - perfect example of DIP BUYERS becoming POP SELLERS that we talk about. You can see how crowded the long sentiment is based off the replies to any realistic view to market activity. Everyone is in denial but we have to remind ourselves that most traders right now haven't seen anything but upside since they started trading 4 days ago. To their defense, we were all there once including myself. I look back at the kinda stuff I used to say when I was that naïve too. Anyhow, that said - ideally offers some GREAT opportunities like the rest of the SPACs that had huge runs into the definitive and much like QS gap up on the ticker change sell off hard, margin out the retail traders create a trap and ideally nice opportunity after that. For me I wait for A+ set ups just like we have Friday so unlikely I trade it unless some reactive trade sets up tomorrow. All about price action for me.
Failed Follow Through:
WATT squeezed everyone who got aggressive into the close - actually pretty impressive rally $4.80s to $7.80s is no small move. I did re short into close but left the trade before the close - Nice melt AHs. I'd love to see $6.80-7s or at least use that as a guide but typically this one just works out the over sized/too aggressive and then biz as usual back down. I think a good learning spot here on this name is Friday ABCD set up and VWAP reclaim - go check it out - save that chart.
UAVS monster trader this week - gap up 945-10AM + squeeze out into 11AM and fade is ideal. Nailed it both ways a few times but I think we'll have a great week ahead here. The focus should in my eyes be on the over extensions not every move here. In other words straight up consolidates perks squeezes out = reactive trade or flush fade fade fade flushes out = reactive trade. Same as you saw me trade last week. I would put this in the same basket as MVIS VUZI (sidenote: Cathie bought) etc.
USWS higher better for back side.
NSPR swiped up late day so positioned into any dips that came - also had a patent AHs Friday thinking that if trend holds $1.15-1.20 this could start to speed up for a daily chart break out. Would watch if strength holds through first hour - seems to be the trend lately gap, consolidate and go.
BGI really nice one Friday swiped up and held all gains and poked up into the close. Could be a wild one pre market (any of these types always are) but letting a good trade work there until either a) speeds up and goes parabolic or b) failed follow through momentum and appears like trend is failing.
MREO should be familiar from last week. Very nice so far. Be smart along way - for me like I said medium term idea.
SINO one of those that hasn't gone away and could be set up for the next leg for the rally. I was in there Friday on dips - if things start to speed up and base over $11 etc I'd be adding etc.
EBON dips along trend reminds me of CAN & BTBT etc. No position but if BTC RIOT etc stay strong def interested for the next leg up.
MOGO similar thoughts here.
OBSV no position but looking to see if trends start to base vs. $4.80s
EOLS see if forms base $12s + if so I'd be joining trends if we see the wicks we talk about (candles getting soaked - dips and close back up higher).
VIOT same deal - feels like that "transitional" day we talk about someone positioned in someone got out - no rush consolidate and then next leg up in a week or two. Going to watch to position in on dips could happen faster but all dips vs $15 for me if they hold could be $22-25 in this market quickly. I won't chase need to see proper set up.
CARV had a swing here for a while but I think I sold it one day that I had a yard sale on some names that were going sideways - but that said it's proving to hold well - check those wicks we talk about. Going to look to position vs $9.50s.