Free Scan: Stocks To Watch For July 31, 2023

I hope everyone had a great weekend!

This week I wanted to focus on a few things:

1. T4AC Boston !! (Clover Bootcamp too)
2. Were you part of a market cycle? (For real, think about it – be honest with yourself it’ll help you excel)
3. Opportunity cost (TUP XPEV)
4. Small cap crowd / voids etc. (TUP signs, XPEV walk downs dip/rip)
5. PTSD in halts (UFAB)
6. Traders4ACause Vegas
7. X (Twitter) Spaces Replay W/ Kim

Last week was one of those times when you likely tested your risk management. You either succeeded or failed if you traded XPEV and TUP. XPEV was the first one, and once again, nothing wrong with starting in on the front side to a degree (small), but if you were “seeing what it’ll do” and forcing your bias to be right, well, that was costly.

Same thing with TUP on Thursday. EVERY single HUGE exchange, and they were slammed down ABOVE prior support and soaked. So, you had maybe two or three CLEAR AS DAY soak spots that you either recognized or ignored.

The only reason I bring this up is:

1. Repetitive warnings over and over
2. The opportunity cost of fighting
3. Dip/rip XPEV $19.80s & TUP $3.70s

These trades are VERY good at trying to force you to think what they want you to think but when they turn it, that liquidity is gone.

That’s the difference between now and 2020-2021 markets – way more players back then and liquidity didn’t matter with sizing it was for the most part pretty easy to get in and out. Today, it’s the same – easy to get in and out until it’s not. I think TUP was a great example of that – how many times do you need to see it 1. soak, 2. not create new lows w/ real weakness 3. ignore dip/rip candles under key levels?

Those are the tools you need right now in small caps.

You HAVE TO UNDERSTAND – CROWD.

If everyone wants the SAME thing – you will either be RIGHT slowly or REALLY wrong fast. TUP is that perfect example.

Every fade day we’ve had typically is followed up with thin gap and grind days ie: SPY UPST XPEV etc. We are still in a SOAK market.

Here are the t-shirt giveaway winners from this week:

YouTube

• @computeraccount4254
• @yoginacharya2150

Remember to leave a key takeaway on Sunday Scan for a chance to win every week.

Twitter

• @Guggi821
• @Heisenberg__21

Follow on Twitter for some opportunities to win free IU merch.

Video Scan and Game Plan

Stocks to Watch

TUP reactive trade off open – IDEALY $3.20-3.50 + open and fade off again but thinking we may have a relatively weak open which would cause a lot of people to ignore this trade. If that happens I want to keep it on radar like AAOI APLD etc – once people 1. get exhausted or 2. take off radar due to gap down etc. that’s when edge starts to form because the crowd leaves.

QS an example of the ‘transition day’ I would have bet $ Friday could have gapped and faded but instead we had market gap and grind and QS followed well. The way these gap and fades work in my mind is if you were price sensitive you’re out, if you were short you’d prob stick around and then we have those slow grind days like Friday back up to highs. So, blow out off open is ideal – reactive trade and cover flush would be ideal. If it stays heavy vs. VWAP 945-10AM + possible fade trade or if opposite and firms up vs. VWAP 945-10AM + for long

XPEV reactive trade – ideally $25 + blow out watch NIO with it. They’ve been great TRADERS do not force a bias unless you’re with the trend.

NIO same as XPEV – sometimes a bit friendlier

Failed Follow Through:

RIVN feels relatively weak vs. peers so I am watching for fades to join – THAT SAID if it gaps and firms up and momentum shifts they could just be collecting shorts for the break out. Just keep that in the back of your mind.

APLD higher better for unwind eventually just had its 4th 5th 6th hit piece on Friday lol – I think shorts just creating liquidity on this one, they try it they support it they force them out repeat. Eventually it’ll look like AAOI and have a day that fades 25-30% in my opinion.

UFAB higher better for back side

ENVX and OSTK both same starts same promoter on them literally every move has been same from first move up to the pull backs to the squeezes etc. Watching both for failed follow through set ups.

CLEU higher better for back side – same reasons we went over the last two weeks.

Continuation:

KC possible break out watch dips for r/g

FEMY I held over Wednesday night – no dice currently down on the position.

FIXX watch if weak open holds and sets up for r/g

Staying Familiar: