Nice consistent action last week !! Every day last week was "Eh, patience - no A+ let's see what the morning brings but I like X, Y and Z for potentials ....." Force the trades off open = chop = miss the trades.
What happened with VIAC DISCA BIDU VIPS IQ TME and others?
VIAC and DISCA have been intense, stair case up forget the elevator pretty much no parachute down. Not only did you have a liquidation but in my opinion you had tons and tons of dip buyers, average downers, and over sized traders with an aggressive long position they did NOT expect to have and had to either 1. Respect risk and sell it off or 2. Panic sell which forced even more lows.
Once I saw it staying heavy I went into broken record mode and as you saw tweeted not to underestimate it before it dropped another $15/share ......... Yes $15/share. NUTS.
$VIAC to me feels like a lot of add add adders today and need to blow out the over sized dip buyers. No, nothing has to bounce - remember most probably waiting for same thing.
— Nathan Michaud (@InvestorsLive) March 26, 2021
This is about going in with a plan and being able to adapt. In my opinion most thought they had a plan, thought they'd "wait it out" "wait and see" but I've been there many - been there done that. That's why I was able to give you guys the heads up. It's not fun. Days like Friday you learn if you have risk management or not.
STAY FOCUSED - RISK MANAGEMENT is EVERYTHING.
PRE MARKET: Price action convinces people of things they normally wouldn't agree with WAFU EEIQ etc.
Icon Meals - Jeff H
1 Month IU - Robert Gacia - " The obvious, despite being obvious is not alwasy the easiest."
T-Shirt - Mike Little
You should stop out 🛑 because you planned to not because you have to 👍
— Nathan Michaud (@InvestorsLive) March 28, 2021
How to trade better?
How do make trading easier?
Avoid what you suck at.
Stop trying to force a trade you typically have the most trouble with or find yourself on the wrong side of.
Plenty of fish in the sea.
— Nathan Michaud (@InvestorsLive) March 24, 2021
Having too many stocks on my watch list, finding a mediocre one setting up and hitting it, and missing the good ones. Every single day when I’m running over my list, I’m like “how the hell did I miss that one”...and it’s always because I was watching something worse at the time
— ec47c (@ec147c) March 28, 2021
I’d love to know how you anticipate moves at the opening bell! It seems you always have a good idea on where things will spike/flush down to the cent/dollar
I felt like a + set ups were constantly going against me on the long side. How do you know how to adapt?
— Troy Crowder (@troycrowder35) March 28, 2021
When to exit a near perfect entry. My entries are close to perfect on a pattern but always very early on taking profits and it frustrates me to see when a stock squeezes right after taking gains
— t3chytrad3r (@t3chytrad3r) March 28, 2021
Better to be out than wish you were out. Better to wish you were in than wish you weren't. Sometimes I exit/enter in same candle because I see what I needed to see to confirm my thoughts.
Getting out quick when the trade is looking bad
— Kenny (@KennyW004) March 28, 2021
When thinking something was an A+ setup but in reality it was a C+ setup at best. Not getting that problem anymore in 2021 but 2020 was a big struggle for that. Used to add add add thinking something had to work / 90% probability of working then get smoked for a big loss lol
— ToddyBear (@ToddyTheTrader) March 28, 2021
Video Scan and Game Plan
Stocks to Watch
VIAC currently have a long position traded a few times Friday but once I saw the $58s fail I sounded the fog horn about 20 times in the room also on Twitter gave the warning not to underestimate that it had ALL the signs that EVERYONE was on the wrong side and likely needs to majorly flush folks out - well another $15 fade came after that. I think we could see a gap here consolidate a bit and then do that gut check we saw on the NIO PLUG TQQQ style moves a few weeks back. Same strategy here we'll see. I would think about what your trade plan is over all - short term rebound? Long term position? etc. Don't change it on the fly!
BIDU as you guys saw pretty much got the lows on this and TME I sold all BIDU long exposure on the equity side but the calls I snagged will be converted into a long position so still positioned on both technically. Thought is the story that came out over the weekend makes everyone feel warm and fuzzy and possibly gives us a nice gap up for exit followed by some gut check moments the next few days to really test folks conviction of all the stock they just bought on the liquidation.
TME sold some as well from the 16.6x's average and kept rest over. Thinking same as BIDU.
PRQR had a member ask me if I thought liquidity trap here which very well could be the case but prefer to see $8.80-9s defending after a weak open possible SSR and rally. Otherwise - could be in for slow steady fade back next few days if it can't hold over $8.20s (Friday's VWAP).
Failed Follow Through:
WAFU quite the move off EEIQ yesterday along with the rest. I am hopeful for a big gap up and squeeze out of some timid hands possible off the backs of another EEIQ squeeze - but equally prepared for the usual one day wonder gap down and failed follow through. I want to be ULTRA aware of EEIQ though!
EEIQ I did not trade short side on Friday - didn't even attempt for a borrow - good way to get in trouble. Huge move pre followed by a nice sideways consolidation with $25 as the peak all day - weak close before it pressed hard after hours to $28 + from mid $15 close - nearly doubled AHs before finishing up about 20% - what I want to be aware of here and on the rest of the names is that this could easily do crazy things like WNW OCG the more people prepared for it the more likely it won't happen BUT I want to keep an open mind so I don't end up in a crazy situation with the sympathy fade names WAFU and the ones below.
FEDU higher better watch with the basket.
CLEU higher better always a thick one that fails hard - great timing in the room on Friday into the circuit up. Love to see opportunities with rest but again all depends EEIQ and what it does to the basket.
ATNF higher better and unwind - b/c people were willing to chase well, they chased this one alright pre market offering some nice fades. I'd love to see $7.50-8 re-test for failed follow through but unlikely.
APTO bought Wednesday and Thursdays dips as noted on Friday scan I think $6-6.20 will have trouble BUT if this thing starts to firm up $6-6.20 could be in for a nice $6.50-7 break out near term and possibly higher if momentum catches $7-9 blow off type trade. I'd rather be PROVEN right than ASSUME it will. I'd be cautious until prior peak becomes baes and confirms - vs. $5.50s over/under levels mental as risk.
DUOT so far - been a big picture idea volume is real low so not really a momentum trade just letting the swing work.
LGHL $5 is a huge trigger here been in there on the dips but appears like someone has been in the tape soaking the last few days. Check the wicks - Friday did have a random flush but at least they caught it. $5 firms up could have nice secondary move but likely need something to trigger it.
RCON nice continuation trade - traded it from Wednesday to Friday so far locked half - just small trend join trade letting it work.
GSMG was a big picture idea the first day of volume - noted $4.40-4.50 was key looking left. Letting this trend work until it doesn't.
USDP 2 days of vol joined Friday small feeler.
BGI same deal as before - corrected a bit this week but last two days has had someone saving the trend a bit as usual. $4-4.50 key levels I think I probably should have sold some over the $5 the day social media/Twitter was all over it but I didn't since I knew I wouldn't re buy the same size I have from $2s so that's okay