Warrior Trading Blog

Finishing the morning +$2k on $HDSN and $ZYNE


Finishing the morning +$2k on $HDSN and $ZYNE




All right, so let’s go over today’s trades. We’re at the end of the first hour. We’re gonna do an early mid-morning recap here because I’m not gonna take any more day trades today. So, I will go over things here before too many of you guys take off. So, finishing the morning up $2,023.40, which is not bad. You can see my P&L here, I’ve got ZYNE, $815 and HDSN, $1208 and a new swing trade on WIN with 1000 shares at 2.13, that’s currently at 2.14 by 2.15. So let’s go over the day trades and then the new swing trade.

So day trade started with a trade on HDSN, entering at 91, 99 and 95, and selling at 10.15, 10.06 and 10.20. And maybe sum it, it looks like 10.08, something like that. So partial fills on my exits, but this was a Gapping Ghost setup, HDSN, we had on our watch list this morning, watching a possible long over 10. The bell rang, it popped up and so that was my entry, 9.95, looking for the break of 10.

You could see it popped up here in those first two candles up to a high of 10.25. It couldn’t hold those levels, it came back down. It then curl back up to 10.19, it pulled back and it gave us a little bit of a consolidation period right here around 9.98 and then it squeezed up to a high. So kind of interesting, I missed this one minute pullback on it but other than that, it was a good first trade right out of the gates. So that was HDSN, Gapping Ghost stock with earnings last night or this morning, that’s what gave us the catalyst for the move.

Second one was ZYNE. Now ZYNE was on my watch yesterday for a possible swing trade for a Bottom Balance Reversal and I didn’t take it because I thought that as a pharmaceutical stock, it would be too risky to hold this overnight, which I think probably is true. But it ends up going up 30% intraday yesterday. So I figured you know what, I’m gonna take some of these trades and I’ll call them a full day hold where I’ll hold all day long and if I hit my profit target intraday, I’ll sell. If I hit my max loss intraday, I’ll sell, or if it’s a reversal like this and it’s just sideways, I may stop out and I may not hold it overnight. So it will be sort of depending on how it trades through the day that I’ll make that decision.

So that was on ZYNE and today, I took a continuation trade on it with an entry just under $8. I got 2800 shares at 7.96. You can see here I got a partial fill at 92 and then I bought the rest at 96. I wish I had got in my full 5000 shares because it ended up squeezing up to a high of 8.44, which was really nice. So on that move right there I made 1200 bucks and then I got back in right here, right around here at 8.30. You can see here my entry getting back in was 8.30, 8.28, 8.29 average and I sold 4000 shares at 8.24. So I lost 5 cents and gave back 200 bucks but on that one, I didn’t feel concerned about that because it was still a good trade.

So $2000 on those two trades and then starting a swing trade on WIN. Now obviously on WIN, I may end up selling this sooner if it hits my profit target, but I don’t really think it will, this is a 189 million shares float stock. It’s very thickly traded, it trades like Sprint or Siri. But what I like about it is the daily setup, and we recently had a bad earnings call, the stock dropped down significantly, it dropped from 3.60 all the way down to $2.

Now it’s curling off these lows, and I was watching for the first day to make a new high. So the low of the pullback is $2. My entry is 2.13, I’ve got 13 cents of risk on this before I’m gonna get stopped out. I put my stop at 2.01 and I might actually move that up a little bit but for right now, my stop is 2.01, and I’m not risking a lot of money on this trade, I’m not taking a big position. I don’t expect to hit my profit target intraday, but I am also not really concerned about the trade the way I would be with a pharmaceutical or something like that.

It’s telecom, they provide telephone internet services to people in the Southwest I think it is and Midwest. So in that sense, it’s a utility stock, I’m thinking not a lot of volatility. If over the next few days we get a move back up towards 2.50, back up towards the nine moving average, then that would be a nice kind of low risk trade and make a couple hundred bucks. If I end up getting stopped out, I’ll lose 130. Now the thing for me is that I want to add these trades to supplement what I’m making as a day trader. I don’t want to risk a lot of the profit that I’m making as a day trader. So that’s why I’m taking smaller size.

Now on some of these like ZYNE, I may have taken more size because I have a really good feeling that I could hit my profit target intraday. And if I have a good feeling I could hit my first profit target intraday, I’ll take a much more aggressive position than I would hold overnight, knowing that by the time it’s three o’clock, I’ll scale down to something I’m comfortable holding overnight or maybe I’ve hit my entire profit target and then I’m gonna be out of the trade. So just food for thought there, but the trade here on WIN, entry at 2.13, stop, 2.01, maybe three or four would be fine as well, but for right now I’ll leave it at 2.01. We’ll see if this starts to curl up. Today is the first green candle after a big drop, so it’s a really great looking setup.

Now I’m also watching a couple other similar setups, one on TEVA. We’ll wait for the first candle to make a new high, it’s not ready yet. Also have GEMP, this one is also not ready yet, but I like this setup. The reason I like this, cause these stocks are down a lot in the last two weeks and they’re getting over extended to the downside. So I like the idea of riding them for a move back up. I also think that these, because they’re really extended, they’re more likely to snap back regardless of what the overall market is doing.

So the overall market may not be as big of a factor on these stocks. So those are two reasons that I like them quite a bit. That’s in contrast to a momentum setup like something I was watching on Facebook the other day. You know Facebook was looking decent and then all of a sudden we had a big red day in the market and of course that weighs on Facebook more heavily. So then Facebook ended up dropping down that day as well.

This is a higher price stock, even if I took 100 shares, that’s $17,000 in the trade. And since I only have $58,000 in this trading account, that would be quite a lot of money to put in one position. So that’s a little bit of a problem, I could do options but then because you have time decay, you are looking for really a pretty quick resolution, which we did end up getting there but that more would have been a day trade.

So some of these swing trade setups that I call out may end up being really good day trades, where we’ve got a really strong daily chart, we start to see the volume, we start to see resolution, and we’ll hit our profit target intraday, and that’s fantastic, there’s nothing wrong with that. Some of them like WIN are gonna be very sort of slow movers and we’ll look for our profit target more likely over the course of a few days and that will be okay as well.

Alright so just think about profit to loss ratios, risk reward. Oh another one I was watching was WEX but this one I don’t think is quite ready. But looking for that long stretch of consecutive red candles and then the first candle to make a new high. You know the thing with TEVA is that it’s … You know I think I’m gonna wait on this one because 18.49 is the first candle to make a new high and that’s like 75 cents away.

So I think I’d rather buy tomorrow based on the high of today’s candle, which right now is 17.89 but let’s say it’s like 18 and then it sells off again, that might be a cleaner place for an entry, but I’m not totally sure. So anyways, those are a few of the stocks that I’m watching on the daily chart and today, throwing in the towel with about $2000 profit. So good day for day trades, and we’ve got a little swing trade started as well.

Okay, so that’s about it for today and I will see you all first thing tomorrow morning. Alright, thanks guys.

Oh hey, I didn’t see you there, while I was just working on the dream board for my next home run trade, hopefully it’ll come soon. Until then, make sure you subscribe to get email alerts anytime I go live or upload new videos. Until then, happy surfing.