Warrior Trading Blog

Daily Recap for Monday and an Exciting Announcement

new swing trade

 

 

All right everyone, we’re going to do a little mid-day market recap here Monday morning, and I’m back in my home office. Obviously I was out on Thursday and Friday, I had some meetings in New York City. A couple of the meetings were with different brokers in the city.

Today, I actually didn’t take any trades. I closed my account on Friday, and today and tomorrow I’m moving my money over to a new account with a new broker that’s giving us a group rate. All the Warrior Trading students are getting a discounted rate. I’m going to be really excited to announce more details on that tomorrow. For right now, no trades today, my account is closed with Speed Trader, closed the account and moving to a new firm.

One of the reasons I’ve traded with Speed Trader for so long is because they were the cheapest place for me to trade. Even though there’s a lot of good brokers out there, I did what made the most sense economically for my account. I’m going to do the same thing now.

I’m moving because this is a move that’s going to be cheaper for me, it’s also going to be cheaper for our students. I’m excited, and I think we’re at a point now where we have such a large community that we have a lot more negotiating power than we had in the past.

When a broker hears that there’s 5000 traders in the community plus half a million followers on social media, they want to make sure we’re working with them. Super excited about that, and I’m going to have more details on that tomorrow.

For right now, today was a day where I didn’t take any trades. I didn’t trade on Thursday and Friday either because I had these meetings, so I was coming back into the market and I was like “Well, I’m going to see what’s happening. I’m going to watch and look for the gappers,” and this was actually a perfect day for me to not be trading because there really wasn’t a lot happening.

This is the funny thing, I expected that because I was going to be out of the office on Thursday and Friday, that there would be a stock that ran like 200% because that’s what happened the last time I took two days off, that’s when DRYS happened. I knew I was feeling FOMO because I kept looking on my phone to check quotes and stuff like that and trying to remind myself not to worry about it, I’d be back on Monday, not to get caught up in that. As it turned out, Thursday and Friday there weren’t a lot of opportunities.

Today, I figured “Well Thursday and Friday was slow, that’s typical of the end of the week.” Most companies don’t put out really good headlines on a Thursday or a Friday. They put out good headlines early in the week, Monday, Tuesday, Wednesday.

Statistically, that’s when I make the most money. So it wasn’t surprising that it was a little slow towards the end of the week, but I was thinking we would bounce back today, and we kind of didn’t. The stocks that were on my watch this morning were IBXG, now this one I had on watch because it was a gapper, I’ll show you guys who are on Facebook, you can see this is a pre-market chart.

We’ve got the pre-market high of $3.33, and I was thinking on this one, it had potential, but the main issue was the 200 moving average at $3.47, that purple line. Because of that level right there, I was like “I’m afraid it’s going to hit that, and that will be the high of the day.” It didn’t even get that high. It got up to a high of $3.20 pre-market then it sold off. This one was out of play almost immediately and just wasn’t even an option, so I was like “Okay, next one up.”

The next one was SORL. SORL is auto parts, so I was kind of iffy about it pre-market just because it’s not a sector I’m particularly excited about. I’m much more excited about biotechs and stuff like that. On this one, when it dropped down here before the bell, I thought “Well maybe that’s it, it’s probably just going to fade,” but the market opens and it popped right up to $6.

On that pop to $6, it was kind of tricky because the only way that you could’ve really capitalized on it is if you just sort of jumped in as it was squeezing, if you jumped in around $5.50 or something like that, which would’ve been pretty high-risk considering the sector, the spreads, and the volume.

That would’ve been a possible entry at $5.50 for the half-dollar break, and it certainly worked. Popped up to $6, but then it came all the way back down to $5.33. Then all of a sudden here it pops back up. You get a little one-minute micro-pullback, that’s a fake-out, we drop down. We pop up, we drop down.

You can see this is trading a sloppy way. The first five-minute candle to make a new high worked, but at that point we were below the VWAP, we were below the nine moving average, and I just wasn’t sure it was really a setup I liked. We continue to consolidate, then you see my line there at $5.80. The pullback here above the VWAP down to $5.80, and I said “This is the place that I’m interested.”

I can’t trade it, but I like it over $5.80. It broke $5.80 and it popped up to a high of $6.13. That was the one clean opportunity on this one today, and it was 5000 shares that could’ve easily been $1000. Not the biggest winner ever, but not bad either. $1000 is good.

That was a good opportunity on that one, it wasn’t really able to hold those levels false breakout, and it’s been kind of choppy, but we’ll see how it closes today. It hasn’t sold off entirely. It’s consolidating here at the VWAP. Maybe it’ll give us another opportunity.

ALNY is another one that we were watching today, Mike was watching this especially, higher-priced stock, but big range from 63 up to 68 and back down to 63. Definitely a stock to keep your eye on if you like those higher-priced ones. Other than those two, not a lot moving today.

Hopefully we’ll have better opportunities tomorrow. Tomorrow I’m going to trade, as long as my account’s all set up, I’ll be able to trade tomorrow, but I’m leaving at like 11:30 tomorrow to go to Las Vegas, so I’m only going to have really just the first hour and a half before I get my last few things organized and head out. Tomorrow will be a short day. Hopefully we’ll have some good opportunities, but I’m not totally sure.

On Wednesday and Thursday I’ll be trading in Las Vegas with our students. We’ll be trading together and that’ll be a lot of fun. That’s Wednesday Thursday, then Friday morning I’ll trade as usual. No days off this week, just kind of a busy schedule.

Since I wasn’t able to trade today, what I want to do is I want to look at some of the students that were trading in the simulator. I’m going to sort this simulator here by net PNL. This is our fantasy stock trading simulator right here. We’ve got the level two, the charts, then the leaderboard.

I’m going to start and the top and look at the students who made the most today. You’ve got Jared up at the top. He’s got ALNY, which is a great trade $3700, and it looks like he was shorting this with pretty conservative size, 500 shares. His first trade was 932 for a short at 6422. Let’s look at the chart on that one. He was shorting this right out of the gate right up in this level, then covered on this drop there, which was a really nice trade. That’s very solid, I like the look of that.

Let’s look at one of his other ones. NVIDIA higher-priced stock, short 250 shares, covered it, not much there but good risk management. Now he’s long MYGN 2000 shares with an average price of 2227, so let’s take a look at that one. MYGN. 2227, so he might have gotten in on that pop right there where there was that spike in volume, and now he’s coming down a couple cents but certainly not much.

Really some good trading there overall. That’s pretty impressive, but he didn’t trade any of the stocks that you would usually trade, so let’s look at the next one.

Saleem, he traded 480,000 shares, so I know he’s trading really large size, so risk management might be a little bit different there. Greg, really nice on Greg’s trades. He traded SORL, IDXG, SGMO, GSAT, MIME, and EXAS. Trading the same stocks that I would usually trade, which is pretty good. Let’s see. We’ll look at Barbara.

She’s got TTD, but she’s holding it from Friday, so she held that one over the weekend. Small size, only a thousand shares, but a little bit more risk there. She’s short snap right now. Down a couple hundred bucks on that. I can see how many shares traders are taking, this is kind of helpful because it gives me a sense of if they’re being really really aggressive on share size or more conservative.

Let’s look at Blake, he’s got only 1500 shares today and he’s up almost $1000. He’s got NVIDIA, which is solid, but he’s been holding it from Friday. Then he’s got Tesla, which is also pretty solid, nice small share size. Looking at these students, you can see a range of strategies. Some are trading the higher-price names, the ALNY, NVIDEA, others are focusing more on the lower-priced stocks. There’s a few that are trading both. Tyler here, he’s got SNAP, SORL, ALNY, NVIDEA, Macy’s, so he’s kind of got a little bit of everything there, which is fine.

Going from the top, let’s see. Jared by far has done the best today with two really good trades and a third one that’s not too bad. I want to give Jared an award. This is going to be an accuracy award. Accuracy award goes to Jared for especially nailing ALNY and NVIDIA.

I’m going to add one extra month to Jared’s account on the simulator. Good job Jared. I’m just going to make a note to add that to your account. That’s Jared. Good job Jared, nice work. Keep it up. Now let’s see, Saleem trading with really big size, I’d like to see a little bit more conservative on the share size because that is pretty aggressive.

Kyle, he’s got a mix here, SGMO, SORL, so SORL he was scalping this, in at 78, out at 77, in at 69, out at 73. Trading both long and short. Trading with fairly large size, but it’s the way that I would typically trade these stocks. Kyle, I’m going to give you the momentum trader award. This is a Ross award because you’re trading very similar to me. I’m going to add a month of simulator onto your account as well. Two awards today for Jared and Kyle. Great job guys, keep it up.

If we look at all of the students trading in the simulator today, you’ve got 130 that are green, 130 are green and you’ve got a total of 467 that traded in the simulator. Only about 30% are green today, which is a little on the low side. Usually on a good day, we see that closer to 50%.

Today is a day that they market was a little bit choppier and you had to be very smart about what you were willing to trade. Tomorrow, I want you guys to do the best you can in the simulator, to try to take A-quality setups. We’ll take a look at who’s leading tomorrow. I’m not looking just at the person who’s made the most money, because if you’ve made, if you took 5000 shares of $100 stock, it’s not super realistic.

I’m looking at the most money, but also in the most realistic way. Really good job for Jared and Kyle, you guys did great today, and Saleem, not bad either, NVIDIA, $8000 is huge, but my only concern is that in the simulator, it wouldn’t be realistic to be holding that type of position. That’s a very large position with that stock. That’s my only feedback there.

Tomorrow, just as a reminder, I’m going to give you guys the announcement about the new broker, so you guys can look forward to that, that’s going to be tomorrow. Tomorrow I’ll also be heading out to Las Vegas. We’ll trade in the morning, hopefully we’ll have time for a midday market recap right around 10:45 or 11:00, a little on the early side, then I’ll get that uploaded and drive to the airport. That’s it for today and I’ll see you guys all first thing tomorrow morning. Thanks guys.

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