Warrior Trading Blog

Base Hit Day +$733 | Ross’ Trade Recap

Ross 4.29

What’s up, everyone? All right, so here we are, sixth consecutive green day which certainly feels good. Tomorrow is going to be the last day of April. Now this morning when I was looking at the gap scanner, I knew as soon as I pulled it up, today’s not going to be a big day. Today’s going to be a basic day at best. I might not even take trades today.

And I knew that as soon as I pulled up the scanner and saw that our biggest gapper was only about 20%, which is not a very big gap, considering last week, we saw several days with 50, 60% gappers. The fact that the biggest gapper was only 20%, the fact that we didn’t have any stops on the scanner with a really low float below 10 million shares… Remember, float is the level of supply, and to create those big moves, you need to be in balance between supply and demand. And so when you start with a low level of supply, that makes the equation that much faster that you get the imbalance, but today there was nothing that really gave it to us.

Couple little opportunities here and there. I hit a couple of them, missed a couple of, and you know what? I’m just happy to be closing the day green, so sixth consecutive green day in a row. Going to try to make it a seventh consecutive green day tomorrow, and we’ll be live streaming right around 9:00, 9:15. Make sure you guys are subscribed and have the alert button pressed so you get the notification as soon as I go live. All right, everyone, so I’ll see you first thing tomorrow morning. I hear a stock hitting the scanner, but I don’t think it’s going to be anything worth trading, so closing up shop today and we’ll be back at it tomorrow morning.

All right, everyone. So I’m going to finish up here today right around 10:30, up $733. Bit of a slow day. Not surprising. PRPO is our leading gapper, but of course, the issue today was that our gap scan… The top 10 or so gappers and even LEDS, only 12 share of volume. This gap scan was not a very good gap scan in the sense that the majority of stocks were either too cheap, too expensive, or the float was too high.

PRPO was our leading gapper this morning, and it was looking great around 8:15, 8:30, 8:45. Even coming right up to 9:00AM, I was like, “This one looks really good.” It looks similar to RBZ the week and a half ago or whatever. Because it’s dropped big time yesterday or Friday and then totally recovered, and that can sometimes create a really powerful squeeze effect, especially over $8 on a daily chart which then would give us room up towards 9 and then from 9 up to 10, 12, and so on.

I was liking the look of it quite a bit, but then pre-market it comes all the way back down here and it retraces more than 50% of the move up, which for me is always a red flag. Now it opens below the VWAP right at the support of the 200 moving average. But it breaks that level when the bell rings and comes right back to the pre-market basically where it started before the move even began. So that pattern is broken up here, it’s back at the 200, back at the VWAP.

Sure, it doesn’t mean it can’t break out and make a move up, but I don’t really expect it. That was our leading gapper this morning and it didn’t give us any good opportunities, no trades on it. INNT was our second leading gapper of 20%. However, again, 26 million share float, 4 million shares of pre-market volume, and not a very nice pre-market chart. Below the VWAP at the open and it sells off. These ones, too cheap, too expensive. ROAN, this one actually ended up giving a little bit of an opportunity, although, I didn’t trade it. I thought the 36 million share float probably was just going to be an issue and it wouldn’t be super volatile. But it actually is up right now about 37%, so that one’s nice, I just missed it.

Not super clean chart patterns. A little pullback here, it failed. A second pullback here worked. A third pullback is forming right now, but nothing crazy, crazy exciting. And then the two stocks I traded were actually both right off the high of day momentum scanner. So today was one of those days where I said, “Given the fact that the gap scanner doesn’t look great and I think probably most traders are sitting and waiting, let’s keep a really close eye on this high of day MOMO scanner. And the first stock that hit the scan, that is our low float high MOMO scanner, was ATHE. It hit at $1.99. At $1.99 it was already up 53% on the day. I pulled it up, as I pulled it up, I typed in my level two. I saw it squeezing and I press Shift 1, Shift 1 and bought 6000 shares right here as it was coming up to $2.20. It squeezed up to a hight of 255 so a nice 35 cent breakout there on 6000 shares. Three times six is $1800 and I captured about half of that move making $967.

Unfortunately it came all the way back down. So at 100% retrace the breakout that started $1.77. Well, I guess it started actually down here at $1.57. So kind of a crazy move, from $1.57 up to 255 and then right back here to $1.74. So it ended up hitting a high of being up, let’s see, 96% on the day. And traders were jumping on it but it just didn’t continue and it came right back down. ROAN was on the scans but I waited on that one. And VERB was the next one that was on the scans, low float scan, massive volume, squeezing up right here. I jumped into this one at 236 with 3000 shares. It hit a high of 245 and then dropped right back down to 213 and I took a $234 loss on it.

So one winner today, one looser. Only 50% accuracy but $733 of profit is a decent day. I wasn’t super aggressive. Today didn’t feel like a day to be swinging for the fences. This morning about, what time was it, probably 9:25, I said to the inner-circle room, “Today’s the day.” 500 to $1000, I think that’s the best that I’m going to get today. I don’t have high expectations. I don’t see really much in the way of home run potential. I think it’s just going to be a small day. The fact is, today I didn’t have a trade that I was able to take in the first two minutes.

Friday, and almost every day last week in the first two minutes, we’ve had a good gapping go opportunity where I jump in and with 9000 shares, quickly scalped anywhere from 1000 to 2000 or $3000 of profit and that’s based on stock being on the gap scanner with a float of under 10 million shares with a good daily chart and everything else. So when I have a day like that in the first five minutes where I’ve got either $1000 or I’ve already hit my daily goal, then that can open up a terrific day. But today we didn’t get that so that meant all my profit had to come off the high day MOMO scanner and we just didn’t have a whole lot that gave us big moves. So that’s okay. I’m totally okay with that.

It’s still the sixth consecutive green day. It’s the smallest green day in the last six days but green is good, it’s fine. Today’s a day of making a little progress. I’ve got a little more than I had when I started the day, $49722 of equity in my main account today. Green is good. And I’ll be back at it first thing tomorrow morning. We’re going to try and finish up the month strong. Yup, I’ve still got my bunny ears here because today is the sixth consecutive green day. I was wearing them while I was trading. Overall, this has been a pretty solid month. I’ve had a few red days here and there. I had stretch of three red days on Tuesday the 16th, Wednesday the 17th and Thursday the 18th when I was trading in California. And we had Good Friday and then I kind of sat down, readjusted, got myself focused and now I’ve got six consecutive green days.

So let’s try to make it a seven consecutive green day and finish the month tomorrow with a little more profit. I’m sitting about $10000 or maybe about $10500 off of the million dollar level of this challenge. Obviously it would have been nice to cross that level here in April but it’s not going to happen. I don’t see any indicator of tomorrow’s going to be a $10000 green day, I think it would be unrealistic to be aiming for that. Of course you never know, things can pop up and very quickly, all of the sudden you can have a big green day.

But mostly likely this challenge is going to carry into my May statements. I’m thinking it in terms of statements. If I had finished on the April statement, up to April and then I’m done. But it’s going to go into May so the May statement will be included in this challenge which is fine. But it is important that the entire month of May is green. It’s not just crossing the challenge on the first day of the month because then if I close the month red, my statement balance will not be over the million dollar level. And I want to close a statement balance above the million dollar level for my records and everything. So that’s fine. This will just be one more month in the journey, carry me through the month of May. And then hopefully by June, this challenge is wrapped up and I’m able to start focusing on what my next challenge is going to be.

So anyways, that’s about it for me. We’ll be back at it first thing tomorrow morning, 9:00, 9:15 live streaming pre-market analysis. Hopefully we have a good gap scanner. I’m getting tired over here so I’m going to switch gears, refill, get a little caffeine here and try to get some work done and then I’ll see you guys in the morning. All right everyone, I’ll see you guys first thing tomorrow morning.

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