Warrior Trading Blog

Finishing Up My Last Day In NYC +$1,043

finishing up

Finishing Up My Last Day In NYC +$1,043

 

All right. So, we’re gonna do our midday market recap here. This is gonna be a little on the early side just because I’m getting ready to leave the city and head back home. So, I’ll go over the trades that I took today, and we’ll talk a little bit about LINU, this stock that’s up right now 169%, from $1.12 this morning to a high of $3.20. I started a day today with a couple on the watch list.

CAPR was on watch, HMNY was also on watch, ITEK was on watch — continuation setups — and basically I was trying to find something that looked decent but we didn’t have a really good watch list this morning. As it turned out, CAPR looked the best just before the bell was ringing, and kind of like APVO yesterday, it was consolidating just under the pre-market highs.

So as soon as the bell rang, I jumped into this at 43 and 45, anticipating that it would break over the half dollar and likely squeeze up to $3.50, $3.60, pre-market highs. And that’s pretty much what happened. It popped up to $3.55, it dropped back down, and then I got back in for the second attempt to break over the half dollar. Back in at 40 … where was it? Back in at $3.50, adding at $3.60, and selling at $3.64. So in total, $1,043 on this trade, which was really not bad at all.

Now, a few minutes later we saw LINU hit the scanners. And this one, when it first hit the scanner I thought, you know, I don’t know. It was at $1, it was right around this spot here on the 1-minute, where it was around $1.43. And I thought that it was a little on the cheap side, maybe getting a little extended, and I would wait for a pull back. It consolidates sideways, dips down, and this might have been a decent place to get in for the break of $1.40, $1.43.

I just wasn’t particularly interested in it. I didn’t think it had a lot of potential at that time. It popped up, hit $1.50, a high of $1.53. It pulls back a teeny bit, goes up to $1.63, $1.70, $1.75, $1.90. So that was a really big push here from what initially didn’t look especially interesting, all of a sudden opening up and squeezing 40 cents. Pulls back here, and at this point I said, “Well, if I get in at 91 I’m buying it right below the 200 moving average on the daily chart. That seems risky. It doesn’t seem like a smart move.”

One of the things I talked about for my goals for the month of October was to not swing for the fences, to not look for home runs, but to take base hits. And so, I did that this morning and I hit my $1,000 daily goal in the first three minutes of the day. So when I see something like this coming along, I sometimes think that these can be traps. They draw you in because you see it moving up so quickly you don’t want to miss the action.

That fear of missing out convinces you to buy it at $1.91, which would be maybe too high, and then if it drops down to the 70’s, all of a sudden you’ve given back a bunch of profit. Well it ended up breaking $1.91, popping up to a high of $2.25, and then pulling back. Coming up and double topping at $2.25, which I was looking at that and I was thinking, “Well, if I buy this at $2.25, I’m literally buying at high of day. That seems awfully risky.” But in fact, it would have worked on this one. Although it’s risky, it would have worked, and it went up to a high there of $3.20 before now pulling back to $2.86.

Now, I want to remind you guys that this stock doesn’t have news today. I wasn’t able to find any news on it. So, that by itself makes me feel a little uncomfortable about trading it when it’s up 157%. I don’t want to get into the situation where I buy a stock … I missed the first move when it was down at $1.40, $1.50, $2.25, $2.50, $2.75, $3, and I end up buying it at $3.50 and I’m the guy that takes his first entry on a stock that’s already up 160 or 170%, and then it gets halted by the exchange pending they want to know more information. So that’s why I didn’t end up wanting to get in it when it was all the way up here. Now, what’s not uncommon is when you have a stock make a big move, like LINU, you’ll see sympathy moves. And that’s what we’re seeing on CNET.

I saw CNET hit the scanner down here at like $1.38 and $1.50, $1.38, $1.40, and I stopped popping. The high on this 1-minute candle that I’m highlighted on was $1.50. And I looked at it, I had my order ready. I was almost about to get in. I guess it was right around $1.45, you can see on my level two, and I pulled my hand away for a second. It hits $1.50 and then drops to $1.30, and I said, “You know what? That’s exactly how you lose 30 cents per share, 20 cents per share with some size.

And that can really get me into some trouble.” So I decided not to get into it and it popped up to $1.50, consolidation sideways, the break over $1.50 was pretty nice, and now it’s squeezed into a circuit breaker halt. So, halted for five minutes on a circuit breaker. It’ll resume here … it should resume shortly. It’s up now 80%. So this one is totally running on sympathy for the move that we’re having on LINU. It’s not uncommon that we see these sympathy moves.

I see CNTF on the scanner right now. So this is another one of those ones where when we have a strong market, traders will just sort of jump from one to the next, to the next, to the next. So, CNTF. It’s not really doing much but it could be one that gets a little action. MTBC starts to get a little action when the other ones are moving. CNET resuming from the halt. The high is $1.98, and I see an 18,000 share seller at $2, right there.

If I was being aggressive, a lot of times I would be a buyer at $2 out of a circuit breaker halt, but when the stock is running on no news it can be just a little more difficult to trust. LINU is pulling back a little bit, so 16,000 shares on the ask, 95 by 97, 89, 92, 89 by 95 — six cent spread — 86 by 94, 90 by 94, 80 by 90, 74 by 81. See how quickly it changes directions? 71 by 77, 72 by 74, so you can see it dropping, 66 by 70; these big drops. And you’re now 20% off the highs. That’s how quickly these can drop down on you. So that’s why being a buyer up there at the $2 spot on this one would have been pretty risky.

We can look back at LINU and see that it’s retracing its move. It may consolidate sideways, it may give us another opportunity, but I’m not really gonna regret missing it. I’m walking away today with $1,000, and if you focus on trading the best quality setups and you really have your mind set on that, I’m not sure there were a lot LINU that were really good.

Maybe an entry at $2.24 for a flattop breakout, maybe. Even though getting in there, your stop would have been like $1.98, the low of that pull back, which is a little on the far side. So that’s a possibility. A possible scalp at $1.91 here. That’s a high risk scalp but maybe something you could have considered. And again, this entry here I was looking at down at $1.45, $1.50, but it’s tough. When these start to really get going, you just have to really second guess yourself and make sure you’re not gonna be the one that’s marketing in at a really high price and then gonna get yourself into a pinch.

CNET, that drop, then the bounce back up. And this is kind of how short sellers can get trapped. If they’re short and this does break over $2, instantly they’re gonna start to feel some pressure. But the 5-minute chart is not very clean. You have this little red candle here, what right now is a red doji candle. So I think, probably the smart thing to do for most of us is throw in the towel at the end of the first hour and take your profits and be content with them.

So, today is $1,000, and that for me is a decent day; that’s the daily goal. All right. So I hope you guys have had a pretty good week. We did a great job here in New York, had a really good time at the seminar. Wednesday and Thursday, great trading. Finishing it up Friday here with another good day is a really nice way to go into the weekend. I hope you guys all have a great weekend and I will see you first thing on Monday morning. All right. Bye, guys.

Oh hey, I didn’t see you there. Well, 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.