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
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AND Sign up and submit questions for Alex and I’s webinar tomorrow September 28th – you can do that here.
VERI: Well we hit almost 75 today, pretty wild, and pretty close to that 80 target 😉 . Then a perfect shitstorm of shit hit, there was a big pull, and then the kiss of death via a Citron bash, and all hell broke loose. Congrats to Eric who absolutely murdered this today, he got it for about 20 points on the first go round, then 10 more later in the day, absolutely sick. Great work E. This is not what I had in mind for a “pullback” lol, so I doubt i’ll be buying this dip for a resumption of artificial buying and bid propping – this may have been the beginning of the end. That said, if it does start to catch a bid, you know what it’s capable of. It’s got some of the biggest players possible involved & controlling the float, so just be mindful of that. I’d approach this going forward as a short on meaningful pops, but as I tweeted out earlier today it’s NOTHING to fight with and add add add higher and get stubborn on, it can move dollars in minutes. So watch your size, know what you’re trading, and stay on your toes if you choose to get involved here.
DXCM: This thing got whacked a/h today on news that a competitor came out with a rival product, an improved version of the continuous glucose monitoring system, which Dexcom had previously had a “monopoly” on. I put monopoly in quotations because it’s not literally that, but from a diabetic friend who’s very active in that community, he mentioned to me that Dexcom’s product is just far superior to anything else out there currently and that’s what almost everyone uses. So now that this company $ABT came out with this new product, it looks to be a serious threat to Dexcom’s stranglehold on the market, which was evident by the $8 tumble it took after hours on the ABT press release of a new option. So I’m watching DXCM for some continuation follow thru lower in the coming sessions, especially since we are below the major support level of ~58ish. If we’re headed lower, a likely scenario may be an attempted pop back towards that 58 level, and if it fails to reclaim that, I’m expecting an extended move lower from there down into the 40s. So one to keep an eye on in the coming week or two for a short trade.
HMNY: I mean…what’s left to be said about these things by now. It’s insanity. I was short HMNY last week, got stopped out over 7, and I got back involved today and am currently short again from 9. I have a similar plan to the last short, I’ll give it about a buck of room and using 10 o/u as a stop. This nonsense has to end sooner or later, and when it does on these crazy smallcaps, the collapses will be epic. So I’m ok with taking a few papercuts if need be, as when the trade finally does work, I expect to get at last 3-4 points out of it, to which I’ll be adding to the winner and making back all the losses and then some. So holding short here, and lets see if the wind starts to come out of the sails of these crazy runners soon (IZEA and ITUS as well).
IZEA: I shorted some of this right after 3pm when we got that huge pull on volume. I really thought that was the end. I was up pretty nice but didn’t cover any, and ended up covering close to flat right near close. I had planned on swinging it initially, but didn’t really like that it sort of recovered off that big whack, held a higher low in the process, and grinded back towards 6. This has had tendencies to ramp in premarket during this run its on, so I decided to play it safe, cover up, and re-attack tomorrow. This is the easiest and cheapest to borrow of the 3 (HMNY, ITUS IZEA), so I just figured I can get back in tomorrow, and that’s the plan. The 6 area is HUGE on this…it was support all day today, and all day Tuesday. So that’s the spot for me. Anywhere above 6, I’m completely uninterested and will not re-short. However should we slam sub 6, I have no problem chasing some entries and adding pops from there, but it’s got to be below 6, or else no dice. We’ll see what tomorrow brings.
ITUS: I got a few locates early premarket, but everything was completely gone on this by 8am and it’s now restricted everywhere. Hopefully some become available tomorrow but I’m not holding my breath. So I have a few on from a 5.08 avg, which I have zero intentions of covering unless they force me to. This new T+2 rule has been creative havoc in the smallcap names lately. So that’s plan there – hold as long as possible since the borrow is so hard to come by, otherwise I’ll bail at 6 if anything insane happens again. I really don’t think that will happen, but you never know. It’s been a crazy last week, so we’ll see.
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
