Wild week last week. Trading was great but I think commentary was INCREDIBLE. It’s not every day we’re so zoned into a name like ZSAN and ACHV and get it down to the very candles of the breakdowns. I hope many spent some time reviewing the chat logs.
Once again as I repeat myself every week — scans are not meant to TRADE EVERYTHING. As you see me daily I zone in my FOCUS on ONE or TWO names and have a FEW other secondary watches. Last week focus was on about 3 names per day w/ a few secondary trades that worked while my focus was zoned in on those that needed the attention ie: PCG ACHV ZSAN IGCC etc.
If you missed last weeks trade and chat logs reviews:
$ZSAN Trade Recap (+ Chat Logs) – RESPECTING Price Action Above All Else
Video Recap of Scan for Tomorrow:
Stocks to Watch Tomorrow
IGCC I’m praying this comes in a bit – I sold a decent chunk towards close – as most know in at .93x’s in the AM I was going to trade it pre market and actually did try in the .60-.70s but then I figured I’d just be part of the problem chasing it up pre market so figured Id wait for the open. As mentioned I wanted to see it confirm trend so I let it pull, once I saw they were present w/ bids I started in. Scaled throughout the day. Midday it was stuck at $1.25 and as tweeted at $1.25 food for thought — this was $2.46 pre de list so there very well could be a big momentum trade left. Sure enough it took off to $2.10s into the close. If it gaps I likely sell the remainder but I will be looking for weakness / flush for opportunity. Will post if I trade it in the room.
Just food for thought $IGCC was $2.46 the day of the delist as $IGC — so one could make the case that this could really get some big momentum especially if they have some PRs lined up. Great trade today off the open great consolidation may get nutty into close. pic.twitter.com/tnIn79YwD5
— Nathan Michaud (@InvestorsLive) February 22, 2019
ACHV crazy sweet trade on Friday really nice opportunity both ways — did exactly as it’s done in the past. Always likes to start off strong trap a bunch of shorts squeeze them out and just when you think it’s about to break out and go bananas they’re unloading before you know it and it snaps. Great trade and perfect timing on anticipating that snap Friday. It did the EXACT same stuff as ZSAN did the day prior same signs same tape including the tape into the close — so this is going to be interesting to see if this is a new algo in the markets. I did get short into the close high $3.30-3.40s but covered $3.24-3.27 for many reasons – one they were soaking and was hard to get fills and second reason I wasn’t looking to be aggressive after the day/week we had into the final 30 minutes on a Friday. If they treat it the same as ZSAN that means all pops are a fade tomorrow – I am HOPEFUL they stick around for a better entry and give it a slight pop first.
*** Z ROKU IQ ***
The next three I’m not sure how excited I am for an immediate day trade but half of me feels like this could be a blow off in the market where these names are the out performers and then immediately come back in, straight in as soon as the rest of the big earnings are out. So — I’m just keeping that in mind as an open thought “What If” case scenario. In other words, I wouldn’t be surprised either way if these keep breaking out to upside or if they are one and done’s and things turn right back into the sell side in a day or two if a weak open doesn’t get supported.
Z steady squeeze on Friday along with many others that just took off straight up W ROKU TTD etc – I think after a day like this profit taking is normal and wouldn’t see red as weak but rather a bit of a time out before legging back up. So if it sets up on a weak open for red/green I’d be looking to take that trade. If it gaps up and has a power open I’d look to fade the trend 945-10AM + especially if it starts to have some failed follow through momentum.
ROKU similar thoughts probably won’t be a top radar but given the range it’s going to stay on my radar and I’ll look to take the quick trade off and if things stay heavy I’ll look to get there.
IQ my oh my I had my eye on sister HUYA all day but never really pulled up this one. Incredible out performer. Higher better and likely trade of choice. Again, there is ZERO reason to be biased going into the day tomorrow all that you need to know is there is HUGE range here GREAT volume and TRADE POTENTIAL. Let’s let it SET UP and
NIO had/has the 60 minutes piece today so maybe we get a gap and parabolic trade might have a nice pull back opportunity if not and we start firm over VWAP through 945-10AM + I’d be looking to join trend w/ risk off VWAP
AVP has just been cruising along since Bill Miller was + on them on CNBC along with COTY – it pulled a bit off earnings which almost acted like a trap, so – with that said I’d be looking for a possible break out near term with some larger candles perhaps .50+ candles coming.
TRQ these types of charts are just sneaking up like mad lately so I will definitely keep an eye if we consolidate for a few days I’ll look to put a touch on for a swing potentially (see TEUM type charts) all just getting absorbed and steady bid for 90% of the days.
UXIN I think last Sunday scan we talked about this one for the break out not that I thought it’d just run away from us but that I felt like all dips would be accumulated and give us a good potential for a longer grind than most think. I think the staying power on this one will hang around a bit longer than most think and then when it looks like it’s about to squeeze we’ll be heading back down just like last time in the $8-9s
TME so far so good from swing thought process (this was one of those recent IPOs theme we talked about the last few weeks) I no longer have a swing on but would look to join trend.
QD given China names being relatively hot (Friday) have to keep this thing on radar for possible break out near term. Again I think entry is what matters here – no FOMO entries for $6 break out but rather smart dips along trend types of game plans.
XNET I re bought Friday (had bought $3.40 and road it to $4+ the first candle) it was very good to us. Re bought midday dips on Friday to see if we have a short term break out. So far volume and trend has held. If it can’t firm up $3.90-4 will kick it out of swing.
HYRE has been a swing theme idea (I stole it from Michele) but so far so good re: Lyft / Uber sympathy play into their IPOs. To me this is the type that a fund will just rip around for run off their build up into the heavily hyped IPOs — this being the “Cheap” alternative I could see this doubling and doubling again on a squeeze. Does it belong there? Probably not? Would I chase it? No. But as I’ve been trading it w/ the game plan I’ve said – weakness big dips cracks of trend etc — I’m a buyer w/ a longer term outlook thinking this just catches into the mix. So far great – no reason to chase it’s offered plenty of trades sub $4s since the idea.
BE nice break out higher better and looking to fade it once it has a profit taking day. I think it’ll be a straight forward fade — but the key will be locking into the flush/wash out and not over staying thinking it has to come all the way back. I think we’ll have a very nice clean fade like we did a while back on BILI that day where we waited for 945-10AM to fail vs. VWAP and then just stayed heavy all day and they pulled the bids, we covered — and now it’s much higher (ie: don’t marry it, just taking advantage of profit taking downside).
VYGR 945-10AM trend join vs. VWAP trade.
RKDA started in on Friday – if you look back the 1.5 million share day was the last day I had traded it. They have supported it since. They flushed out sub $5 a few stop outs and now back at it. I will keep adding as long as dips hold vs. $5 risk. Thinking we could get momentum near term (if some news drops) that could fuel it as a momentum trade like years past. For now, there’s a buyer present and I’m just following trend.
QFIN another Michele (offshorehunter) find watching dips – this fits the theme we talked about last week re: Recent IPOs etc.
HPJ nothing to chase – watch dips they’re supporting. Volume like this can support a few bucks higher under the radar. May start a swing vs. $3.20s risk.
DPLO smoked out Friday, I faded it short on Friday kept covering a bit too soon. Typically I look for a gap up failed follow through then fade it off morning bounce. If we gap down and flush I’d consider a reversal back red/green and move on. This would likely be a REACTIVE trade only if it sets up otherwise I’ll review at 945-10AM +
MNLO put in a nice day Friday – as I said when I started the swing last week to me chart reminded me of CLPS – that’s what I am going for. Not looking for $1-2/share. Already a buck + padding since buying it last week. Will continue to add dips if trend holds. Nice so far.
KHC wild move for this AM. Likely will get a $1-2 steady move followed by a fade of at least 1/2 the move — or a gap down flush followed by a rally, if it stays heavy at VWAP I’ll lean. I’m not going to get prepared for any ONE bias because we’ll come to the desk and see if it’s up or down, there is enough volume to trade what we see – and thus formulate a plan then.
Friday Recap
$PCG trades today pic.twitter.com/RsM7ZN4Lr4
— Nathan Michaud (@InvestorsLive) February 22, 2019
$IGCC I am long from .93x’s as stated in the room I have a little over 1/2 left – likely a swing trade for me given the thesis I posted an hour ago. Right here: https://t.co/WaBgZNIt8B pic.twitter.com/bTPSZaNykB
— Nathan Michaud (@InvestorsLive) February 22, 2019
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