On Watch 09/22/17 from Dante

Webinar Replay w/ Alex: If you haven’t checked it out yet, please watch the webinar I did with Alex, a lot of good info in there for traders of all levels, and some background about my story and who I am. Watch here

There’s also a webinar special sale going on for those interested in getting involved with IU, which you can find here.

AND Sign up and submit questions for Alex and I’s webinar next Wednesday September 27th – you can do that here. 

 

Sorry for the lack of posts this week…I’m dealing with some family stuff and have just been a little preoccupied, so I really haven’t traded much this week. Like this morning, I shorted some HMNY at 6 in premarket and set a 6.50 stop and just walked away. I’m also short ITUS swing from Tuesday at 2.33 avg, which I’m still holding. I didn’t touch either of those today, still short both.

HMNY: Everybody knows what this thing is by now, and if you don’t you should. These guys are essentially a shell company, they don’t do anything. They exist solely to raise money and dilute shareholders, and this most recent run up will end the same exact way as every other one. That being said, this name is extremely thin and they love to trigger SSR and mess with people & squeeze it, so it may not be the smoothest ride down which you should be aware of, but rest assured this one ends up right back where it came from once the attention fades and the short crowd lightens up a bit. I am short from 6, I’ll probably add a little tomorrow into a morning push attempt. I’ll be at my desk all day tomorrow, so using 6.50 as a guide for adds, and ultimately will be using the previous high of low 7s area as a stop. I am short at Vision, so not sure how long they’ll let me hold these shares with the new T+2 rule in effect, but in a perfect world I’d like to remain short for as long as possible, again as I can say with almost certainty where this story ends. Conviction play for sure, will be really pissed if I have to stop over 7, but so be it if that’s the case, and I’ll be watching like a hawk for a re-short. Just because it’s a conviction play doesn’t mean you ignore stops and deal with tremendous pain. Always adhere to stops.

ITUS: I am short here as well from Tuesday witth a 2.33 avg. They sent out a bunch of rehash news again this morning, completely meaningless bigger picture. Same deal as HMNY, total pig here, conviction short, looking to swing for a while & add pops on the way down as long as the liquidity remains reasonable.

VERI: Alright…..so I bought 500 shares of VERI today at 53 lol. Yes, I know. I’m crazy. Its a total “funbucks” trade, I can lose $5/share and laugh about it with the size that I have, but honestly….I think there’s more to go here. Ideally I probably should have waited for a pullback, but I know exactly what’s going on here. I literally joke about this with Nate EVERY day in our PM convos, and I mean every day. From all the way when it was back at $20, “See you at 50 bro.” were exact words used lol. So kind of half joking today, I bought some, as our new target is 80 🙂 But it’s not really a joke, and I’ll give you my reason. VERI is a recent IPO name that only released 6M shares to the public in the IPO, that’s the float, 6M, super tiny for a tech company. This is totally by design, so they can manipulate the shit out of it and run it up into lockup expiry, which is around November 8th give or take a day if my math is correct. I called this literally weeks ago, spoke with Eric about it and others, this is going to be a massive short trade in the near future. This is 100% artificial propping so they can unload shares come lockup time, I believe an additional 11M shares become available for sale then. This company is shit. They barely have any revenue. It’s a total joke at these levels right now, BUT……with that being said, it’s only September 21st. There’s still a good 6 weeks before lockup. That’s a long time. So I expect the shenanigans to continue right into that, who knows we may be at 70-80 by then. Doesn’t take much with a 6M float and guys like Goldman Sachs, Morgan Stanley and Blackrock (among others) with their hands in the cookie jar doing the prop. So yes, I totally should have waited for a pullback, don’t buy strength on this thing that was probably stupid, but I do genuinely believe it could still go a good ways further as they’ve made their agenda crystal clear in my opinion. So I’ll stop this current long from 53 at around 50, and at that point hope for a substantial pullback to low 40s or something that ropes in a new round of shorts (who still have any money left), and look for this thing to continue to ramp on air right into early November when lockup rolls around.

 

 

If you’re not an IU member and would like to become one, there’s still a sale going on here, along with the webinar sale posted at the top. Or if you’d prefer a shorter time commitment to see if you like it, you can go monthly as well here. Shoot me a PM anytime in chat (DGTrading101 is my IU handle) and I’m happy to discuss trade ideas with you.

See you out there!

– D