I hope everyone enjoyed the long weekend.
Video Topics
- Forced Exits
- Being Patient
- Liquidity Traps
- Be One With vs. Stubborn
- BTCS psychology
- Channels
Video Scan and Game Plan
Stocks to Watch
BBIG nice levels in the room on Friday – morning shove walked it right down to pre market support and away she went. Hit that $4.2x’s prior resistance before fading off but stuck around. Keep in mind this one trades heavy options so a lot of times it makes sense for them to just sell calls against their positions to hedge and not even have to touch their equity while shorts sorta combat each other. What does this mean? Edge = parabolic move or failed follow through focus on your levels this can last longer than you think. It doesn’t mean it’s going to go nuts it just means it’ll exhaust you before ultimate fail.
DWAC Feb 21 catalyst idea was with PHUN mainly possible MARK etc – one of those I feel like I sold too soon and it’s probably ramped up too much meanwhile it keeps going. Likely caught a lot of shorts already and we’ve seen a preview of this one before so when it starts to go again longs start to have the same mentality as the first time and don’t want to miss round two. What that means to me is when the trade comes take it until the trend breaks. So far each flush has never seen lower so those have been the cover spots. Two days in a row I was up pretty nicely before minimizing looking for more.
F daily driver still in range – we had that nice blow off day Thursday. $24-26 range has been the level we’ve been talking about – relative strength every day. Long or short doesn’t matter provides both trades daily the only people losing are those getting stubborn. Daily driver for me.
LCID 19th has the lock up it’s heavily publicized everyone knows – what does that mean? It’ll either do the move everyone is expecting and fade off or … if it holds you’ll likely see the hedge come off and have a nice opportunity on the exhaustion move of the pre positioned shorts. I’m not here to make a call one way or the other it’s been a great trader daily but when the 19th comes if it does nothing DON’T take it off radar b/c you had all this “build up” into this “date” and nothing happened — if it isn’t very responsive the trade is LIKELY right around the corner once everyone gives up.
Failed Follow Through:
SBEV killer opportunity on Friday – went over this liquidity trap on the broadcast and then late day where it ‘shoulda died’ all day started to curl back and participated long side for EOD squeeze. Yes, sold too soon. No position but let it do it’s thing and once it blows out this round of shorts will watch for the failed follow through set up.
LABD as you’ve seen on scan I started to stalk this one and provided quite the trade on Friday into the close for over $4/fade from that entry given. If bio names continue to rebound this will melt further than you think (think about volatility and UVXY VXX etc). Same concept.
NRGU starting to monitor just like when you saw me start to focus on LABD — doesn’t mean I am short bias – just means set price alerts and focus on set ups.
RELI never leaving radar – shorts still fighting daily but once everyone gives up chart will look like BFRI — so far it’s acting like PPSI though. What that means to me is I believe it’s a crowded short and needs to exhaust the “obvious” fade trade out and then chart will look like BFRI.
BTCS absolutely major trade on Friday great one to review. Let the emotions and aggressive shorts pass and once everyone forgets about it – just look at SOPA ISIG etc.
Continuation:
PSTI set up is just like SBEV – keep an eye for possible squeezer next week on cover.
IMTE so far straight up from liquidity trap. At this point more so just a watch hard to chase it at these levels but you can see the formation and wicks we talk about every Sunday.
NCNA just a scan – great chart possible break out set up – no position.
VIRI another clean break out set up – relatively low vol worthy eye – no position.
Staying Familiar:
Implied volatility on $BBIG 4.50c weeklies is NOW +2,000%…0_o
Enjoy the vaca!
Thank you, great overview as usual. I’m concentrating on Options for now but love watching your weekly to learn your thought process.