We had another interview drop Friday I hope you all checked it out this weekend. Here is the link in case you missed it.
My goal is to just provide as much value as we can on the Investors Underground channel otherwise it's just a waste to have so many subscribers in the space but not put out enough great content! We have a bunch of members coming as well who you've never heard from that will give different looks into their world of trading. And, well - we have a lot of other big names lined up too that you have heard of. Make sure to subscribe to the channel for updates.
Earnings unwinders were NUTS this week!
CVNA Led the charge - unfortunately was super late to the trade but still confident to scale but till got a good piece -- had my focus been there at $12 my oh my what a wild unwind!
Another week another short blow out -- this time you were super prepared to avoid if you've paid any attention to Sunday video! Here's the secret: AVOID (or watch/record so you can understand what these look like before these outlier moves happen). Much like I tweeted before the play even started going nuts -- it's a great way to make or break you but unfortunately more likely to break you. Sure enough, hour or two later stubborn accounts blown out. "Should died" mentality.
$HUDI they just doubled it off the washing machine created a false market and shorts went for it.
Another reason why the repetition of edge each Sunday and avoid of low liquidity w/ circuit halt history.
These trades will make or break you with a greater chance of breaking you. https://t.co/CYaIbxvYLX
— Nathan Michaud (@InvestorsLive) November 3, 2022
Despite having a feeling it was going to $100+ like I said multiple times but as much as it was high risk to short ... had it been liquidated to $4-5 like many of the others we wouldn't be talking about it nor would we be upset that we missed the lay up squeeze.
For whatever reason these continue to draw new traders and veterans who are just looking for what they think is the easy $ -- but how many warnings does it take for it to sink in? Remember trading is about having conviction when things are jumping on low volume there really isn't a way to get conviction - so best to avoid.
Before liquidation plays were a lot easier because they weren't as crowded. No one ever knows which ones will be dumped or how aggressively -- all that matters is volume and PRESSURE staying -- HUDI showed same action as ILAG it flushed trapped flushed trapped and if it was going to be liquidated it would have broke key support. In the early days of these liquidation plays shorts would hammer some for sure but not enough to propel the stock into circuits. Now, people can't fight their greed so they just hammer away hoping to get a piece of the next one -- it's just a game of numbers -- if they didn't sell paper and all the volume is shorts and it starts to uptick -- what's next? They used to always do a clear out move ie: blow out the aggressive shorts and then the sellers would step in -- this is where I shined. Now, they just toss volume back and forth until they create the 'picture' of high liquidity but in the end it's all fake. This is why I gave the warning on MEGL and said from that point forward I don't have interest -- unless confirmed like we had on TOP.
T-Shirt Winner: Jared
- Don't Let Pre 945-10AM Bias Take Over!
- Trend Joins 10AM+
- 2-3X And Stop Wasting Time (NIO)
- Channels channels channels
Questions are answered in the scan video below.
When stock picking do you consider sector rotation in your scans to see which sectors are weak or strong and what stocks from that sector are more likely to play out ?.
— Cuzz Lightyear (@Fahrenheit_Clan) November 6, 2022
How do you adjust risk when sizing into a trade and your average is lowered? (Short side)
— Em (@moon_kay786) November 6, 2022
When a stock has big range, you pick your entry (scaling and reach full size) . How do you determine your targets. Or just scaling out along the way near $1 targets ?
— CAnCEL ALL ORDERS!! (@MechanicTrdz) November 6, 2022
I have a job in engineering, and not confident enough in trading to quit my job, do you start with day trading from the beginning? When people are ready start day trading for living?
— Reza (@mrnajafij) November 6, 2022
What do you think about systematic trading and deep Data collection .. have you ever been such type of trader ? thanks
— LTF (@MxLTF) November 6, 2022
Video Scan and Game Plan
Stocks to Watch
NIO another looking left example w/ $11.25 key level gone over after a few tries it's just best to move on. These types when they have good volume and range as the tough ones for me as I know I really want to participate if it fails and it's easy to size up but you have to behave. Ideally morning gap blast through $12 and ride the fade down. I'd love to see a massive gap and just steady .50-.70 fade through day we'll see.
CVNA reactive trade off open and then 945-10AM+ trend join for later. Cautious letting pre 945-10AM + bias take over !!
ROKU 945-10AM + trend join been a great one to wait for action to happen and prove then join.
LUMN thinking we have a steady .50-.70 day soon. Not sure which way yet don't really care which way -- just thinking the e/r came, consolidation and now picks a trend.
Failed Follow Through:
PTON watching for the day it stays heavy vs. VWAP like SNAP as an example to join trend.
SNTG great trades on Friday -- good warnings about the swipes etc. did the same trap as ILAG and even HUDI for that matter but the good part is when more people get scared about that happening they blow out real quick and trade becomes less crowded as it did. Morning shove and fails is ideal - likely fades .50-.70 on Monday would be my guess.
FNKO 945-10AM + trend join ideally but gap .50+ then fade
PBYI dips for possible trend join/continuation trade
CABA sold a bunch on Friday - nice big picture idea other day for swing will re scale if it holds trend
DUO been a good one first time was a doubler 2nd time had good 30-40% rip with the highest volume ever -- nothing to ASSUME it goes but it's 'thin' enough that if they move it higher on lower volume that shorts could be stuck.
NXL dips for break out potential - positioned from the big picture idea to start will scale if right and won't if it doesn't continue
MMAT same idea as all week last week off weakness
APLD killer chart set up
FRZA liquidity trap set up but don't FORCE it let it prove
FREQ nice from trend join last week
LYLT watch if dips keep absorbing for break out