Trading Small Cap Momentum & Identifying the Trap Before It Happened $TCCO

Great trades today. Calls were spot on. Check out the video below to see an entire walk through of the TCCO trade.

We started watching TCCO during pre-market trading, put together a game plan, and really nailed the trade. Review all of the content below to see exactly why we traded it this way.

TCCO Video Recap

Morning Tweets

⚠ Professional short trappers at work 🚧👷‍♀️🏗

— Nathan Michaud (@InvestorsLive) December 10, 2019

$FRAN reincarnation

Hint: Not $FRAN

Same thing. To a tee as last quarter.

— Nathan Michaud (@InvestorsLive) December 10, 2019

TCCO Trades

Chat Logs

08:19:23 am InvestorsLive: TCCO can be fun
08:19:36 am InvestorsLive: Tiny float, be nice if they fade it off before any big move
08:28:38 am InvestorsLive: TCCO nice re take
08:29:30 am InvestorsLive: TCCO $4
08:29:55 am InvestorsLive: should be great ^
08:30:01 am InvestorsLive: Nice TCCO
08:30:08 am InvestorsLive: hopefully more dips I didn’t want to chase many
08:33:03 am InvestorsLive: Nice TCCO
08:33:16 am InvestorsLive: they mean business
08:33:58 am InvestorsLive: This is going to be a fun one today
08:39:38 am InvestorsLive: major opp nice
08:39:47 am InvestorsLive: everyone waiting for dip just had to swipe lol
08:40:19 am InvestorsLive: $5.50 was prior high
08:49:02 am InvestorsLive: TCCO = FRAN
08:49:02 am shaka_zulu: TCCO shewwwww
08:49:06 am InvestorsLive: last quarter
08:49:09 am InvestorsLive: tiny float big ass profit
08:49:24 am InvestorsLive: **NOT** this quarter on FRAN
09:21:14 am InvestorsLive: TCCO being patient locked some into rips around core really nice so far be cautious if new
09:36:17 am InvestorsLive: $5.80s key level from pre TCCO
09:36:36 am InvestorsLive: 945AM remember circuits tigten
09:36:41 am InvestorsLive: tighten
09:39:59 am xChris: TCCO next leg
09:40:03 am InvestorsLive: TCCO be smart around cores
09:40:16 am InvestorsLive: make sure to pay yourself can always re add along way
09:44:45 am InvestorsLive: 15 seconds circuits tighten re: TCCO
09:45:28 am InvestorsLive: TCCO major bids
09:46:40 am InvestorsLive: that bidder filled TCCO
09:54:28 am InvestorsLive: TCCO don’t take off radar
10:01:38 am InvestorsLive: TCCO someone soaking patiently $5.10-5.20 range they’re in no rush.
10:16:21 am InvestorsLive: 6.49 is circuit just in case we swipe TCCO
10:16:40 am InvestorsLive: 100% not a chase for break out you had plenty of opp into flush
10:16:46 am InvestorsLive: buy strength you’re asking for it
10:22:28 am InvestorsLive: TCCO they are soaking the float def one to watch
10:23:02 am InvestorsLive: amazing work so far stuff everyone and soaked size on that flush – pros at work
10:34:36 am InvestorsLive: Circuit me baby
10:34:57 am InvestorsLive: YES SIR
10:34:57 am Allyjay_4: TCCO lol
10:35:23 am jcherniack: false circuit
10:35:23 am InvestorsLive: close but no cigar good round 2
10:35:35 am InvestorsLive: be smart along way guys – pay yourself but this can go major – check lounge for the full commentary
10:35:39 am InvestorsLive: anticipating this
10:52:53 am InvestorsLive: TCCO can be 10-12-15 + so be super cautious no float left at this point have about 1/4 left from pre market core – be safe be smart and way to go
11:07:49 am InvestorsLive: TCCO consolidating nicely up here
11:13:18 am jcherniack: nice exit for them for near term
11:13:37 am jcherniack: yep
11:13:42 am HankTrades: yup
11:13:53 am InvestorsLive: just keep in mind $6.80s holds shorts are still bent
11:13:57 am InvestorsLive: before you get all bearish
11:41:41 am InvestorsLive: TCCO 7.10-7.30 soaker
11:44:57 am InvestorsLive: TCCO gear
12:08:33 pm InvestorsLive: TCCO yes please
12:36:56 pm InvestorsLive: TCCO huge level
12:41:26 pm InvestorsLive: be smart along way guys lock lock
12:43:08 pm InvestorsLive: 1095 circuits TCCO locked bit more in
12:43:18 pm InvestorsLive: into range I wanted on last 1/4 so not trying to be hero
12:43:28 pm InvestorsLive: I’ll bitch at $15 lol
12:45:08 pm InvestorsLive: all done g’luck on rest
12:50:32 pm InvestorsLive: TCCO I have borrows – will prolly attempt it later got them very early before they were crazy $$ but no plans yet. Higher better

Walking Traders through the tape in the Trader’s Lounge (off topic mentoring room)

 

08:42:35 am normo99: Hey Nate, regarding TCCO , what made you “swipe” instead of waiting for dips?
08:43:03 am InvestorsLive: adapted
08:43:05 am InvestorsLive: was waiting on dips
08:43:06 am InvestorsLive: wasn’t coming
08:43:45 am InvestorsLive: just like when we talk about being short
08:43:47 am InvestorsLive: and you’re waiting to cover
08:43:52 am InvestorsLive: flushes out
08:43:54 am InvestorsLive: and doesn’t hit you
08:43:57 am InvestorsLive: then does it again but it’s higher
08:44:02 am InvestorsLive: repeat repeat repeat
08:44:05 am InvestorsLive: sometimes r/r worth it
08:44:09 am InvestorsLive: good #s
08:44:10 am InvestorsLive: stick w/ trend
08:44:11 am InvestorsLive: etc
08:46:31 am normo99: nice thanks for the clarifying!
08:46:39 am normo99: thanks*
08:51:05 am Arke: Nate, TCCO has positive sales thats a PR?
08:51:28 am InvestorsLive: trade thesis is the big profit
08:51:41 am Arke: right, thanks
08:56:44 am InvestorsLive: Gonna go a little early today on the broadcast so I can focus

10:04:08 am ChrisK: Nate, when you say TCCO someone soaking patiently, you mean they are buying it up at that level?
10:04:17 am Turtle: Nate what do you mean by “soaking”?
10:04:38 am Eurocayman: Usually buying with hidden size ^
10:05:06 am Eurocayman: Watch L2 and you’ll notice them soaking up all the shares at that level
10:05:33 am Turtle: thanks Eurocay
10:06:21 am InvestorsLive: Soaking same as tandem trader / textbook trading
10:06:23 am InvestorsLive: like a sponge
10:07:18 am ChrisK: Thanks, will review those again. Apparently it didn’t stick in my head.
10:09:55 am TFade: ChrisK, use the logs, there was a wabinar posted yesterday where he talks about it
10:10:16 am TFade: it was actually a webinar about stuff moves, but he chats about soaking early on

10:20:30 am InvestorsLive: hope u watching this TCCO
10:20:38 am InvestorsLive: big stuff and then came huge limit order $5.40 soaked more
10:20:48 am InvestorsLive: wild stuff

10:25:09 am pp_123: Nate – your last comment on TCCO they are soaking the float def one to watch
10:25:22 am pp_123: mean trapping the long
10:25:46 am InvestorsLive: they stuffed all chaser longs into a false break out
10:25:52 am InvestorsLive: and then bought them back on their panic

10:26:08 am TFade: :up
10:26:14 am TFade: loving the commentary Nate, thx
10:26:37 am InvestorsLive: Remember what I told you guys about how they soak soak soak certain level
10:26:38 am pp_123: Thanks Nate
10:26:42 am InvestorsLive: and if they let it crack
10:26:47 am InvestorsLive: what matters is you are taking notes
10:26:52 am InvestorsLive: and if they re claim
10:26:55 am InvestorsLive: you know they mean business
10:26:59 am InvestorsLive: and all of that crack etc was a big ass trap
10:27:09 am InvestorsLive: they held VWAP slam
10:27:16 am InvestorsLive: and then you saw the limit order come high
10:27:20 am InvestorsLive: when it stuffed
10:27:25 am InvestorsLive: went to like 5.15 bid
10:27:28 am InvestorsLive: then limit 5.40
10:27:30 am InvestorsLive: and soaked size
10:27:42 am InvestorsLive: so again – we are sub VWAP still
10:27:45 am InvestorsLive: you have to ASSUME it all fails
10:27:51 am InvestorsLive: you buy strength you’re asking for it

10:28:44 am InvestorsLive: they are trying to soak the float when they’re ready it’ll have no float left
10:28:48 am InvestorsLive: and prob swipe into circuit
10:29:03 am InvestorsLive: but again speaking form 390-4-5 adds and 6-7 sells around core
10:29:05 am InvestorsLive: kinda of bias
10:29:26 am InvestorsLive: if zero position way too gamble ish here have to assume fails $6 and $7s keys

10:36:26 am RickyBobby: nate i like to think im really good at spotting the breakout points like the 5.60 and 5.85 calls on TCCO, my big issue is spotting the soaking and catching the dips
10:36:35 am JowydS: awesome on TCCO
10:36:38 am RickyBobby: really like when u break these down to this degree
10:36:39 am InvestorsLive: does it get better than that 🙂
10:36:42 am InvestorsLive: nice commentary in here guys
10:36:48 am InvestorsLive: THAT IS HOW U LEARN
10:36:50 am InvestorsLive: real time
10:37:00 am JowydS: 🙂
10:37:05 am amckee25: f*ckin awesome
10:37:05 am TFade: fuck yeah Nate, love it
10:37:08 am kpenright: oh you can see that higher low really nice on TCCO then BAM
10:37:13 am Eurocayman: Boss man, incredible commentary ^
10:37:24 am Victoria: Thank you for commentary Nate
10:37:41 am Victoria: todays commentary combined with previous cases really helped
10:37:55 am Roman: Awesome commentary Nate. Amazing how you can see L2
10:38:41 am louiedayr: Nate, video recap with recording on this one?

10:39:04 am InvestorsLive: can we get to $10 first ? (I sold some speaking form a sold some bias) lol
10:39:20 am RickyBobby: but i need to get better at recognizing the games going on for the dip
10:39:45 am InvestorsLive: this is how you do it Ricky
10:39:50 am InvestorsLive: real time w/ commentary
10:40:00 am InvestorsLive: its not always going to be right don’t assume that but as I always repeat myself
10:40:00 am RickyBobby: i took 5.30 too early the firs time and stopped, too ka step back and rebought the 5.08 after nates commentary
10:40:02 am InvestorsLive: its about TAKING NOTES
10:40:11 am InvestorsLive: so you can react accordingly
10:40:23 am InvestorsLive: why did I start talking about circuit halt up after they snapped $5.20 and relcaimed?
10:40:25 am RickyBobby: for sure each trade has its own personality
10:40:30 am InvestorsLive: b/c the notes we took on the way down
10:40:36 am InvestorsLive: said huge soaker $5.10-5.20 but NOT IN A RUSH
10:40:44 am RickyBobby: they key was the limit at 5.40 correct?
10:40:54 am InvestorsLive: no
10:41:04 am InvestorsLive: circuit was 6.45 or whatever was at
10:41:10 am InvestorsLive: but it didn’t circuit and they just absorbed
10:41:18 am InvestorsLive: next is 7.81
10:41:47 am RickyBobby: i meant spotting the soaking was triggered by the 5.40 limit you called out
10:42:10 am InvestorsLive: oh
10:42:12 am InvestorsLive: so that was after the stuff
10:42:15 am InvestorsLive: think about it right
10:42:21 am InvestorsLive: when newsletters come into a name
10:42:27 am InvestorsLive: they create a ton of buying right
10:42:35 am InvestorsLive: all over the place etrade td ameritrade and direct access
10:42:44 am InvestorsLive: so when they come and sell all of that comes back out
10:42:47 am InvestorsLive: when is the BEST time to buy?
10:42:54 am InvestorsLive: to get as MANY shares as possible
10:43:03 am InvestorsLive: into that panic right? it will be MOST liquid to soak size
10:43:23 am InvestorsLive: so if you are controlling the tape why not send through limit order $6.40
10:43:27 am InvestorsLive: SICK!

10:43:44 am Victoria: damn i left so early
10:43:53 am JowydS: oh man, ON POINT
10:43:58 am Arke: .89
10:44:00 am RickyBobby: sicko
10:44:17 am SLAKE48: shittttttttt
10:44:17 am Arke: zero shers left
10:44:19 am Arke: lol
10:44:27 am InvestorsLive: so
10:44:29 am SeasideTrader: whoa that was nuts!
10:44:29 am lacay20: amazing
10:44:30 am DeepTrader: sick commentary Nate ! this is what i have been missing when trading these low floats..
10:44:34 am InvestorsLive: as I was saying we have 5 minutes to talk about it now lol
10:44:40 am Arke: ahaha
10:44:44 am RickyBobby: inject it in to my veins sir
10:44:50 am mtxr: so why would they put limit 6.40? that to just take everything?
10:44:50 am InvestorsLive: so think about you as a trader right
10:44:53 am InvestorsLive: VWAP stuffs
10:45:00 am InvestorsLive: what are YOU doing as a trader
10:45:04 am InvestorsLive: you’re looking for exit rightr?
10:45:08 am Victoria: waow did i leave early
10:45:11 am InvestorsLive: bids just got smoked 5.15 bid
10:45:12 am InvestorsLive: from 6
10:45:20 am InvestorsLive: then 5.40 20k bid comes up
10:45:28 am InvestorsLive: phew …. 5.15 …. 5.40 guy came
10:45:36 am InvestorsLive: u prob punching out in a panic right?
10:45:41 am InvestorsLive: Thank God that 5.40 guy came !!
10:45:46 am InvestorsLive: that’s what he wants

10:46:05 am Ryan_P: Nate is there some level of para that would make you switch sides on TCCO? or failed follow through only.
10:46:13 am InvestorsLive: can we take one step at a time
10:46:15 am RickyBobby: please
10:46:20 am DeepTrader: yes, after stuff short or sell if bought for BO
10:46:37 am mtxr: i see…. so he soaked all them panics at 5.40 on the bid
10:46:42 am mtxr: so everyone unloaded to him
10:46:58 am kpenright: i’m totallky saving today’s chat as a world file but ya guys let him explain in order please
10:47:03 am kpenright: word*
10:47:38 am doublediamond: nate you are sicko 🙂
10:48:10 am Victoria: Nate is the biggest small cap sicko alive
10:48:18 am Arke: Vic still nice job
10:48:37 am Victoria: Arke: Yeah, so many cases that swipe and fail
10:48:40 am mtxr: how does one develop that mindset?

11:09:10 am mtxr: nate, TCCO consolidating here, but are you afraid of the bids getting pulled?
11:09:20 am InvestorsLive: if you’re afraid you should be out of the trade
11:09:22 am InvestorsLive: or you didn’t lock in
11:09:35 am InvestorsLive: so best to check in with yourself
11:09:40 am InvestorsLive: check that dial
11:09:51 am InvestorsLive: am I being wild? did I chase it? did I lock in? Is my avg too high etc.
11:09:57 am kpenright: i’m afraid of wasps
11:10:10 am InvestorsLive: I have 1/4 left ideally for $10-12 or something wild — if not, if trend breaks I’ll move along
11:10:26 am InvestorsLive: but afraid and is not in same vocab today
11:10:33 am InvestorsLive: unless you had FOMO and did something wrong

11:17:25 am Raz: NATE i dont know if this makes sense but is it easier for somebody to buy the float if there is nobody else who can dump shares? i mean dilution

11:21:34 am InvestorsLive: Raz it’s 1.4 mil float
11:21:37 am InvestorsLive: filings are clean
11:21:48 am InvestorsLive: they reported a good qtr as I noted pre market
11:21:50 am InvestorsLive: remember FRAN?
11:21:56 am InvestorsLive: we traded the ridiculous move on FRAN as well
11:21:57 am InvestorsLive: for same reason

02:01:14 pm InvestorsLive: TCCO watching for stuff move
02:01:29 pm InvestorsLive: reacting to stuff
02:01:46 pm Victoria: lol
02:01:46 pm InvestorsLive: fast $1.50 lol
02:02:10 pm InvestorsLive: cov some TCCO
02:02:18 pm Mtrade: jesus
02:02:26 pm Tha_Monk: nice one Nate
02:02:37 pm Victoria: haha ridicolous