Warrior Trading Blog

Day 104 – 100% Short Squeeze as students bank on $MOSY

Day 104 – 100% Short Squeeze as students bank on $MOSY

 

 

All right, guys. So we’re going to start our midday market recap. Today is the 104th day of the year. Yeah. 104th trading day of the year out of about 250 or so. I know I’ve already missed a couple days. I missed three days when I switched brokers. I missed a day in March when I went to Wyoming. I didn’t miss any days on the trip to Italy, but for me it’ll probably be minus five or maybe eight days, hopefully not more than 10 days. In any case, today’s the 104th trading day of the year, and I’m finishing the day up, $734, which is not bad.

I was hoping to have, you know, a really big trade today. Even as I was going to sleep last night, I was thinking about the next time that I’m going to be able to take a trade with 25, 35, 40,000 shares and, you know, have a stock that’s moving up from $2, to $4, to $6, to $8, where I can just totally crush it. It’s been a while since we had one of those really good days, and I want to have a $30,000 day this year.

My best day this year so far is 22,000, which is good, but I really want to hit a $30,000 day. You know, today wasn’t the day, but I still managed to walk away with $734, which is good. Green is always good. Accuracy was on point. I was green on three out of three names that I traded, so even though I didn’t make a crazy, crazy among of money, the accuracy was solid, and that always is a good confidence booster.

Now, for me to have any day that I have, for the most part, that’s over $10,000, is not the result of one trade. It’s the result of three, or four, or five really good trades. It starts with the first two trades helping me build my cushion on the day. All right? Those first two trades, that’s when I get from zero on the day to up to 800, and then up to 1,600, and then on that third trade I’m like, “Look. I’m already up 1,600 bucks. I’m going to start with 10,000 shares and a 5 cent stop, a really tight stop. Get into the apex point.” Then when I’m up 15 cents, I’m up another 1,500 bucks, I say, “You know what? I could do one of two things. I could either take the profit, or I could double to 20,000 shares now where the stop would break even.” 20,000 shares and a stop at break even, now if it goes 40, 50 cents, I’m going to have a $10,000 winner. Right?

That’s how it happens, but it starts with those first couple of trades that help me build the cushion. Without the cushion I don’t have the confidence to just let it ride. Right? I need that cushion first, so the first few trades of the day, every single day, is about building that cushion. Today was no different, so my first trade was on DRWI. I actually got into this really I was thinking it would do quite a bit more than it did. DRWI, if I pull this back here, we can look at the one minute chart.

Right out of the gates it popped up from a pre-market high of 19 to a high of 124. I got in a 119 for the break of pre-market highs for a gap and go trade. It went up 5 cents, and then it promptly dropped like 15 cents. I made $24.46 on it, so it wasn’t a good trade. I mean, it was fine. I got in. It just didn’t end up working very well. I didn’t go back in for a second trade. I didn’t trust it, and it’s good, because this first five minute candle to make a new high with the break over the VWAP got rejected pretty quickly. It popped up to high of 23, and then came all the way back down, so no follow through on that one.

The next trade was CCIH. Now, this is one that I liked because of the daily chart, so you can see the daily chart on this back on June 1st and June 2nd. It squeezed up on these two days from 99 cents up to a high of $1.40, and then we pulled back. What we were forming was a bull flag on the daily chart. With a bull flag, just the way it is on a five minute chart or a 15 minute chart, the first candle to make a new high is our entry. Now, on this one you can see today we gapped up higher, and so I was watching this basically … Actually, we didn’t even really gap that much, just maybe a teeny bit, but we sort of opened higher at 1.45. We pulled back, and then we squeezed up.

When we squeezed up and I saw it hitting the high day scanner, I looked at it, and I was like, “Okay. You know what? This is one that has a history of making a move, and it’s a great daily chart, so I’m going to jump in here.” I got in right here at 157. Right? 157 was the first one minute candle to make a new high. It was the one minute micro-pullback after this fresh breakout on the daily chart.

For those of you watching on Facebook Live, there’s my PNL. Today $734 is the stocks I traded. This is CCIH squeezing up, so as it squeezed up here, I was looking for the first red candle. Then after that red candle, the next candle to make a new high was my entry point, so I was in at 157. We popped up to a high of 165, 167, and then we tapped 168 right here, and then we pulled back, but right in there was enough for me to make $661, so not an incredible trade or just huge, huge win, but 660 bucks is not bad.

Third trade is MOSY. Now, this one I have a little hindsight regret on, hindsight being 20/20, because I was watching it right here at 1.34 on this five minute pullback, but at the time what I thought was, “You know, this stock kind of didn’t really give me a clean pullback here at 1.20.” It’s sort of pulling back here, but the low of this candle’s 25, and the [inaudible 00:06:26] moving average is at 120, so it’s still pretty extended off that moving average, and I just don’t know if I really trust it. Well, first candle to make a new high, it popped up, squeezed up to a high of 48, pulled back for a moment on the one minute chart, and then went up to a high of 73. It ended up being a really good breakout, and I just didn’t expect it would be that strong.

On this one I said, “Okay. Well, the next five minute pullback will be my entry, and you can see that was right here at 1105, 1110. This five minute candle at 1105 had a high of 162. On this one what I decided to do was get in at 160 in anticipation of the break of that candle. It popped up to a high of 166. I was only up 6 cents. Then it came back down. I took my little bit of profit and made $48.18.

The important thing on both the RWI and MOSY is that I was quick to take my profit when I could tell it wasn’t going to give me what I really wanted, so I was not even really quick to take my profit. It was more like quick to bail out of the trade. On both of those I was bailing out on the bid. I was just like, “Not looking good. I’m out of it.” I’d rather get out for basically break even, plus or minus, than take a 5 or 10 cent loss. Right? I mean, that’s always better.

I got in this expecting an immediate resolution, expecting a move back up to high of day, in this case 173, so as soon as we were hesitating and not really getting that resolution, I just could tell this isn’t going to be one I want to hold onto. All right? I got out of it, and that was the right decision. In the case of MOSY, we dipped back down to 150, and I would have been down, you know 10 cents or more.

That’s about it for today, three trades, green on three names, $734. Not bad. You know, a little bit of redemption from yesterday. I would like to, of course, have a couple of really good five figure days where I’m making 10,000 or more, but for right now continuing to grind on these kind of lower numbers while we wait for the market to give us better opportunities.

You know, that’s the thing with trading. We can’t force it. We just have to keep trading smart, be on the defense. Really being a successful trader is all about defense. Minimize the losses, but position yourself for trades that have potential for big winners. You always have to minimize the losses, and so that’s what I’m trying to do, you know, minimize the draw down during slow periods, and then when things start to look good, I can put the pedal to the metal.

That’s about it for today, 104th trading day of the year, $734, and we’ll be back at it for Thursday and Friday, and hopefully we’ll finish up the week strong, first full week of June. All right, guys. I’ll see you all first thing tomorrow morning. Students, I’ll see you in the Warrior Pro class at 4 PM. OK. That’s it for now. Bye, guys. Oh, hey. I didn’t see you there. I was just working on the dream board for my next home run trade. Hopefully it comes soon. Until then, make sure you subscribe to get email alerts any time I go live or upload new videos. Until then, happy surfing.