Warrior Trading Blog

Back in Action +$1,866 on $RKDA! | Ross’ Trade Recap


All right, back in the saddle here. Monday morning, almost $3,000 of profit on RKDA at my highs. I gave back a bit of it. I’m going to finish the morning up just under $2,000, which is solid. Just below my daily goal, and I’m going to just round it up and say I basically hit the daily goal, and that’s good. This is a step in the right direction.

Last week was a little bit of a setback, but here we’re turning things around. RKDA, Friday, up 100%. Here we go Monday morning up another 50%. This is a stock that today hit a high of about $7.32 cents and was $2.00 on Thursday. This is some really nice action that we’re seeing, but this one has been a little tricky for day trading in terms of the breakouts. 56 million shares of volume traded on Friday. Over 20 million shares have already traded today, and it’s not even a noontime. It’s going to be another high volume day. What we’re seeing is a little bit of a tug of war action. RKDA is a stock that’s kind of been played out. It’s already had a epic parabolic move in the recent past where it squeezed up from the teens, or actually from like eight, nine, $10, all the way up to over $50 a share.

I think people maybe hoping this’ll do it again, but other people who are like, “It’s definitely not going to do it again.” You’re just sort of getting this tug of war, and it’s not opening up. We got some moves and maybe this afternoon it will, but I don’t really think so right now; so whatever. I’m just going to lock up the profit. Green day. That’s a great way to start the week. We’ll be back at it first thing tomorrow.

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Okay everyone, we’re going to do our midday market recap here. Finishing the morning green, which is great. RKDA gave some good opportunities. It was not the easiest. I definitely went into the red on it before I bounced back and got myself into the green. This one was frustrating for me. It wasn’t as clean as I hoped it would be. I gave back some profit on this double top right here. I was actually up a little over $3,000 on it this morning, but I added right here … Well, I had two losses that brought me back down. One was … let’s see, was it right here? I think it was right in here. Then the second one was right up here.

What I thought was that as it curled back up here, that we would break through high of day, and that didn’t happen at that time. It went sideways for a little while, and then ripped through the highs. Right idea, wrong timing, but that’s OK. Green is good, and it’s just really nice to see this level of momentum in the market. This is a stock that was at $2 on Thursday. Friday it gapped up 100% or squeezed up 100%. Then this morning, continuing that momentum and pretty much just being impressive.

For me, the places where I traded it, my first trade was right here, a break over six. This was kind of a risky one. It wasn’t super clean, but it worked. Then I had this trade right through here. It first tested six, it dropped back down, and then it ripped up. Then it dropped all the way back down, and then it came all the way back up; which was kind of crazy. You don’t usually see that level of volatility in this type of stock. But I got back in as it ripped back up, and on this trade right here, got a nice wind. I felt good about that, and that made me feel like this stock really had the potential to make a bigger move.

Now as I look at it now, we did the double top formation right here, cup handle, and then a breakout, which is nice. It kind of struggled around this level a little bit, just sort of chopping around and then boom broke through. Realistically from six 85 up to seven 25 is not the biggest move we’ve ever seen. Then note the very light volume right here. Now, light volume on the pull back is okay. However, what I don’t love is that there was a ton of volume, 800,000 shares, on the candle right here where it broke through the highs up to seven 16. Then the volume dropped off immediately. Now we’re just on very light volume. Yes, I would say seven 25 is a logical breakout spot, and yet at the same time it feels a little weird that the volume has dropped off this much.

What I’m thinking is that on this stock, ultimately it needs to hold this 83 level, which right now it is. If it holds this then it may be worth scalping over a 25, over the highs and just doing little scalp trades where you know, you’d be … I’d be in at 25 and take profit at 30 and 35. Maybe it squeezes up to 50, sell a little bit more up there, wait for the next pull back and then jump in for the break of 50. Ride that one up to 60, 75, then wait for the next pull back and then ride that momentum. Maybe then we start to really curl up and open up.

It’s got 22 million shares of volume. It feels like I almost wish it was doing a little bit more than this. I wish that it had broken this level, and maybe just really started to squeeze. If we look back on … Well, I don’t know. My five minute chart’s probably not going to go back long enough. These types of stocks that have done really, really big moves in the past, they do pull back, pull back and then often they break with a lot more force. Then the first pull back gets bought up really nicely. Right here typically is where I would probably be taking a starter. See a volume coming in, but then it’s not breaking, right? As a breakout trader, this is kind of odd because this just made a new high on the five minute. So you’re thinking, well why isn’t it already above seven 25, seven 21, seven 17. What is going on?

This is exactly the type of action we’ve seen on this stock today, and that’s what’s made it difficult. If you’re coming in to buy breakouts, which typically work instantly in nearly instant resolution, this is a stock that hasn’t been giving it to you. As a result, this is a trade where now I’d be hitting the bid at 14 and there’s another 6 cent loss, or whatever the case is. Of course when it flushes down, it has done a couple moves where it plummets 30 cents in a heartbeat. Not the easiest one to trade. I gave back some some profit on it for sure. I was up three grand, and then gave back 500, was up 2,500 and then gave back another 700. This isn’t exactly where I want to finish the day. I would rather finish up three grand or five grand, especially considering we’ve got to stock up 58% that was up 100% on Monday or Friday. But, it’s tough.

As it curls and consolidates here, it has me thinking more and more about jumping in like right around here. I’m going to take my hands off because I don’t think it’s going to work. This is the place where I would have typically gotten in right there as I saw that green volume, and now I’d be in it at 22. Okay, so there it goes. Now 28, 31, 32, but that was a funny breakout and now it’s back to 16. That’s tough. That’s not easy to trade, and that can start to get you really frustrated.

I think the smart thing for me to do on this one is to take my profit, put it in my pocket, get out of here, come back tomorrow recharged, refreshed, and just be happy that I’m locking up the day green: 1800 bucks. Green is good. I’m going to take it, and I will see you guys first thing tomorrow morning. Well, 9:00, 9:15.. We’ll do our watch list and who knows, maybe RKDA will be gapping up another 30, 40%, and we’ll be trading this up at $15. Maybe tomorrow it’ll be better and easier. I don’t know. Maybe it’ll be something else, but I’ll be here ready to trade.

Here you go. Now it’s back at seven oh five. I mean talk about frustrating … and look at that, I mean you guys, you can hear it in my voice. You can see it in the chart. You can see it in the level. You see it in the level two better than you can see it in the chart. The level two is where you’re really seeing these whips. Seven oh six, seven 20, then seven oh five, seven oh eight. It’s just like, man, that is some frustrating stuff. Then on the candle pattern, on the chart, it doesn’t reflect the true level. It shows a false breakout here over 25, a flash up to 35. Who knows what that was? Was it a short seller market ordering out?

Was it a long trader saying, “This thing’s going eight and I’m buying 20,000 shares.” But it kind of looks like it was just like one market order, and it just pops up, and then drops right back down, back to seven oh three, back up to seven 25, back down to seven oh five. It becomes difficult to know the right places to buy when you have that level of choppiness. Certainly you could take approaches of buying off moving averages, buying off the VWAP, and that can work. You just don’t know how long something’s going to go sideways when you buy off those pull backs. You look at it yesterday or on Friday and boy, I mean you had long periods of sideways and then it ends up failing sometimes.

Right now, this is a good time to lock up some profits, live to trade another day and be back at it tomorrow. Hopefully we see maybe some cleaner opportunity, and we see things open up maybe a little bit more. That would be a nice idea. All right, so I’ll see you guys first thing tomorrow morning.

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