The amount of new traders is at levels that has never been seen before.
This is insane.
h/t @sentimentrader pic.twitter.com/eE9CnYfEMK— Midwestern Hedgie (@MidwestHedgie) May 14, 2020
You need to think about this upon entering trades or thinking things haven’t ran enough etc. The number of FOMO chasers is at an all time home. Some will watch these videos and learn others will be in constant denial such as the responses I got on Twitter warning on MARK VTIQ at the dead top CODX before sh*t hit the fan and once again GNUS Thursday and Friday.
There will be lots of new traders thinking they know what they are doing because it’s worked so far.
Video Scan and Game Plan
Stocks to Watch
SRNE just when you think things can’t get any crazier they do. This one likely tested everyone’s rules in one form or another. Whether it was a stop out, respecting the volume and understanding volume trumps all or just knowing it was one to ignore. It’s very rare we have this opportunity fortunately because I scalped it a few times I was able to get a solid read on it and warn the chat that until $5.80s peaked – AVOID. We discussed it in the Trader’s Lounge as the trade was progressing. It’s very easy to think “no way it can do this or that” … Yeah, well – it can. Posted my chart Friday and as you saw got REALLY involved on the back side of the parabolic (not the back side of the trade). We either gap up .50 or gap down .50 have to see what happens Monday it’s worth nothing they have an Evercore call Monday at 11AM so that’s a ‘forward looking event’ of sorts. This is a TRADE do not try to be patient like APDN or something where there is a major edge and high probability that it fails, volume trumps all. Be a trader. $7.50-7.60 key levels $6.30-5.80s key on downside.
ACB watch a weak open and if $10.20-10.40 bases we could have next leg $12-14 + maybe more depending if sector bounces. This was a great opportunity in the room – I wrote the goal was dips vs. $7.50s for $9-10 + and then as it progressed figured $10-12 — missed it by a few cents 🙂 Either way big trade big idea. Pre market on the broadcast I discussed the WHY and gave the following examples: NVAX APRN and RAD all of which we traded posted reverse split on the front side of the move. THICK pigs but THIN on the way up. Back side shares will come out. WAIT for confirmation should be great BOTH ways but go back and review RAD if you want to get super bearish! The biggest move happened AFTER the first crack.
PENN just has this feeling that we break out and then sit back – nothing to be aggressive on but set up is almost too great for a break out so I’m thinking it gets the shove blows out a few stop losses and sits back. That’s what I’ll be prepared for.
Failed Follow Through:
DFFN ough the amount I had .3x-.4x’s held for weeks too was a good trade but this would have been an amazing one. Nutty move. Watching for $1.50 + gap re-test and fail off highs for back sub $1. This can have staying power so I need it to prove to me failed follow through otherwise assume it’s just going to stay up longer than you think.
UNFI this candle on the daily shows the rebounds were sold. Bearish. Obviously $18 buyer – cautious of that. Looking to fade all pops that fail until this starts to form a base.
GNUS great warnings all week. Cautious here – heavily crowded name but in the end paper will win. Cautiously looking at all strength as opportunity. Best to protect along the way – gave a great example of what boxing a trade was on Friday (it actually helped make the trade for the day).
FTCH 945-10AM trend join worked well Friday may be a boring trade for many – but looking to fade it to $12 if it can’t hold over VWAP past open.
MRNA this is worlds worst trader – continual reminder to lock in. I’m about to celebrate a big win and then bam, reverse and PnL flips from major green to even or into loss territory. Pain in ass trade but tells me – when it’s time it’s going to be huge. Never leaving radar. Key levels put in chat were important to not get ran over.
CODX — APDN AIM ALT APT (same thoughts) – didn’t want to over load with charts higher the better and back side is the goal here. Really nice trades on these all week. Look left – put price alerts and like for quiet fades.
Continuation Chart / Catalyst:
ONCY notice those wicks we talk about on Sunday scan? There’s been a buyer sub $2 and $2.20-2.25 is trigger – catalyst is on Friday 22nd and then again May 29th.
CBAY had the PR out last week been bouncing around like crazy but not giving it up yet. For me $4.20 is the level and price alert I’d set and want to see hold and then look for wicks like ONCY see if a buyer steps up.
CBLI similar set up just had EPS and chart has buyer sub $2 I’d assume fails $2.50-2.60 until proves otherwise and/or PR to get it through.
Staying Familiar:
Typically I post a bunch of charts I want to follow – and set price alerts. In the end if one or two pay out from the price alerts that’s what it’s all about.
As you saw in the room last week LVGO DDOG which I’ve been tracking were big trade opportunities. That’s what it’s all about. It’s not about ticker over load it’s not about trading them all. It’s about picking your spots, watching the trend and waiting for things to change. If things change – ie: all dips stop getting absorbed, key level breaks etc. that’s all the more reason for profit taking. I want to get in, get out and move on.
Every trade results in one of the following:
Small Win
Big Win
Small Loss
No big losses, make a plan and stick to it.
great info on the video,like the reminder to not get ” loose ” in this type of market.dont forget rules and look for the market to bail you out. ONCY look like they are RBC on weds 5/20 for an additional catalyst.Thanks for all the insight Rob
Awesome scan, very informative.
Thank you!
I must say that your scans results were on the “Ball”
Created my watch list and sharing some from yours. I’m interested (anxious) to see what SRNE does this week!!
Thanks for the watch list!!
Your scans describe stocks you are watching but don’t really commit you to a long or short position. Are you prepared to go either long or short with each stock you have identified or are you biased as to a direction on any particular stock? Your mantra seems to be react / don’t predict but you must have some sense of a direction that would be useful to hear why. The key levels you identify don’t indicate what you might do at that key level…..
Always eagerly wait for your scans to come out. I hardly ever trade your watch-list but your thought process behind trading certain stocks is where I get the most value from. Love how you explain certain key-levels.
very, very informative thank you.
What’s interesting is that no one mention how much $$$ you investor make those big profits. It’s great to see the great returns untill you do the math. Then
you realize how much you’re risking.
Thanks for another great scan, Nate! SRNE was insane on Friday and your points were right on. Great insights!
Really enjoy the Sunday scans. I dig that you don’t just give away levels even though you say some key levels. Have to go investigate the chart and own any trade you make as well as your own price alerts. Feedback: The reality is that we go into the open not “blind” in any sense but the emphasis in a large portion of this video is “we have to see what happens” and I like that because you have to think about possible opportunities and think through how you may trade given certain situations. Pretty new to this space and just finished the beginner/intermediate series. Not a huge account here but limiting risk very conservatively and IU has been a great space. Thinking about jumping into the room soon.
Thanks for the great advice and information!
Thank you for the scan.
It is the first time that I watch one of your videos and it clearly helped me to know why I have been very scared with the fast moves in these past weeks. I would like to have that level of conviction in how you plan the trades from the daily chart, in some of them I see an opportunity clearly, in others I am lost. I will watch your Youtube series that you recommend and study more.
AnaY.
Awesome stock review ! Thank you Nate !
Aside from the great technical analysis we get weekly today’s also had a great deal of common sense regarding not letting what other traders are earning influence your trading. Thanks as always. Appreciate it
When you say, “Know what you own”, does that mean you will not enter a trade before you read the company’s SEC filings, latest news, earnings report date, etc?
I really appreciate your honesty – I’m just getting started and have watch 3 of 8 of the beginners video – Extremely informative – But I know I need to rewatch them a few times – your video scan and game plan gave me great insight, but I also realize I have so much more to learn before I fully understand everything you go over – thank you for sharing your knowledge and insight –
First time seeing your Sunday Watchlist. Great info. I am new to trading, trying to learn as much as I can. Only made a couple of trades. So far only goose eggs. Would be very interested in joining investors underground.