Warrior Trading Blog

Great action this morning on $FB, $CLNT and $MYOK

great action

Great action this morning on $FB, $CLNT and $MYOK

 

 

All right, guys. Time for our midday market recap. We’re going to go over the trades from today. I’m back at my home office. Two weeks in California were great. It was warm, it was a lot of fun. I think it was 104, 105 one of the days last week. I enjoyed it. I really don’t mind the heat. I like it. It’s not like I’m a roofer doing anything outside. I’m inside, air conditioned, and then I go outside, walk to the car, and it feels good. Yeah, I had a good trip. Enjoyed San Francisco, Napa Valley, Sacramento, driving around, exploring a little bit, and, of course, trading the whole time.

My routine when I travel isn’t really all that different from when I’m at home. I’ve got my little carry on here, and this guy holds up to five laptops. What I do is I carry two laptops and two external monitors, and then I’ve got room for some books and notepads and stuff like that. That’s my routine. I brought my two laptops, my two external monitors, and that really is more than enough for me to be able to trade.

When I come back home, I have three laptops. One of them I haven’t actually opened in a couple of weeks, but it’s there. I don’t know. Then I’ve got eight external monitors. Two of them are connected to the laptop I haven’t opened in a couple weeks, and they’re just off. I haven’t been using them. I’m mostly just using two laptops and these six external monitors, and it’s really more than enough. I have more screen space than I need, which is why those ones are turned off.

When I get back and I have all this space, I have to take a little bit of time to adjust to it because it’s different when you’re used to trading on one small laptop screen and then you open it up to the bigger screens. You can see here I’ve got my laptop, monitor one, monitor two. For those of you watching on Facebook, laptop, monitor one, monitor two. You can see a pink hoverboard on my Amazon marketing, and then those two screens there and then those two over there I turned off. That’s kind of what things look like, for those of you on Facebook Live.

Anyways, PNL today, $654.21. One trade, and I kept it pretty simple. I would’ve been happy to trade more. I just didn’t see any good opportunities. This morning when we were breaking down the watch list, it started with MYOK, which was at the top of the scan. Now this one’s kind of funny because it ended up making a really big move. The open price was $24. It’s at $32 right now. Seven points, that’s a pretty big move. I actually had a short bias on it right out of the gates, and I never shorted it. It didn’t give me an entry and I didn’t go along either. When I look back on this one, I could ask myself, “Did I miss this, or could I have done something differently on it?”

Here’s the thing. This stock trades with a five-cent tick. It’s part of the five-cent tick pilot program. That means the spreads at a minimum will never be smaller than five cents. Right now, they’re 15 and 20 cents. We’ve even seen 40-cent spreads today. That means if you buy it with 1,000 shares you could instantly be down 400, 500 bucks. To me, that’s practically the daily goal. So the risk level just seems too high.

Now, the reason I thought this would be good for shorting is because a lot of these five-cent tick stocks are not able to hold their levels, end up selling off and fading. They end up being better to the short side. This one happened to be really strong. When I was looking at it this morning, I saw the news on it and I was like, “Okay, this second quarter …” Posted today, second quarter financial results and operational progress. At the same time, they also posted positive top line results in phase two study.

I was looking at it and I was like, “Well, that’s actually pretty interesting. It does seem positive. It seems like everything’s looking good from a financial standpoint and a headline standpoint,” but you’ve got the five-cent tick. I try not to combine that fundamental stuff when I’m trading because there are times where headlines look great and the news sounds fantastic and the stock sells off and you’re like, “Why? I don’t get it.” You just have to focus on the price action.

But right out of the gates we popped up to a high of $24.90, then we pulled back down to $24, and then we popped up to $25.85. It’s like we were moving in really big increments and I right away just felt like the level of risk on this with the spreads would be too high for me to trade so I didn’t take any trades on it. Looking back, are there places I wish I had maybe gotten in? I don’t know. I could’ve taken a trade on this one-minute pullback right at $24.45.

I could’ve taken another one at … Let’s see, the first one was the red candle at 932, the red candle at 935, the red candle at 937. Both of those could’ve been decent scalps. I’m not sure. Really, there’s a couple places maybe that I could’ve scalped it and been a little more aggressive, but I just haven’t found success with these stocks typically. Ended up working pretty well, surprising. Maybe that’s something to keep an eye on for other setups.

CLNT was the one that was also on my watch list this morning with news. Now, this one looked interesting to me. The pre-market high was $4.68. It pulled back a little bit pre-market, but this is a stock that has a history of making pretty big moves and I’m familiar with it. You can look back here in April when it went from $3 to $11 in two days. Knowing this stock has a history of making those kind of big moves, it did it a couple more times in the last few months, today gapping up I thought, “Well, it looks interesting.” The level I’m really watching is over $5. $4.68, that’s 40 cents, 30 cents away. It’s pretty close.

Now, when the bell rang we had a little consolidation here at $4.32. Low was $4.18, popped up to $4.32, and I bought a one-minute opening range breakout. I pressed the buy button, not typing any order but by pressing my hotkey right here, and you can see I tried to get in with … I got partial fills. I only got 2,500 … See, I got my first order filled at 33, which was perfect, but only filled 2,000 shares.

So I pressed the key two more times to fill the rest, but I was filling it 41 and 42, so my fills were kind of all over the place. I don’t know, I think I canceled the order I had at 35. I was trying to buy and canceled it. That was at 35. 935 it pops up to a high of 64. I try to sell on the ask. You can see here no fill. Tried to sell at 62, no fill. 64, no fill. Then I … Oh, actually, sorry. Let’s see. One of these orders did fill. I filled 2,500 shares at 63. That was on this candle right here at 937.

This candle that popped up, the second one, was where I started to get a partial fill, which is fine. We double topped at 64, and then we weren’t able to break over that level and we came back down. That’s where I stopped out. As you can see, this gave us a short opportunity. It wasn’t sustained. The move really ended up not holding, which is a little disappointing, but 650 bucks is obviously not bad. That’s one of the things we talk about.

Sold the rest at 40, which is basically break even. I only actually made money on the shares I got filled at 33. That was my profit, and the shares filled at 40 and 42 were basically break even. Just kind of maybe hindsight being 20/20, it would’ve been nice to have sold all of it up here, but at the same time I was thinking about this potential that it could go over $4.75, $4.80, $4.85, $4.90, $5, and then it really starts to open up. With 7,000 shares at $4.39 average, if it went up to $5 that would’ve been a $3,500 winner, $4,000. That could’ve been a great trade. It didn’t happen, so I stopped out with $650 profit. This is a trade that I would say did not go really the way I wanted it to, but I’m still walking with a profit.

Remember, the first thing we talked about this morning is to try to focus on capturing 10, 15 cents a profit. On this one, the entry was at 32, proper entry, and you got to move up to 64. That’s 32 cents. In that window of 32 cents, I only captured 10 cents of it, a third of it. That’s because I was holding a little too long. But that was a nice window of opportunity. We had that trade today for me. Obviously, MYOK I sat out.

Now this is one that’s interesting. Facebook, remember I mentioned this this morning, I was like, “I really like Facebook on the daily chart because, look, it’s pulling back to the moving average and it’s starting to curl up off those levels. I was like, “Those of you that want long-term trades or looking for maybe a short swing trade, this one’s something that is really interesting to me. The price is a little too high so I’m not going to trade it,” but I called this out as being one to keep on watch.

You can see this has made a nice move here from $1.70 up to $1.72. Really solid moves there on Facebook, which is nice to see as it curls back up towards $1.75. Nice there. I don’t think Mike took any trades today. He was sitting tight, didn’t see anything that looked good. IBM was on our scans for a bottom bounce, but never really set up in the right way. What was it? YY was on the scan for a top reversal. This one at the time of the top reversal had pretty light volume. The majority of the volume came in this one candle that had 300,000 shares at 941. The rest of the day it’s been pretty light volume. This was the spot we were watching, but the volume was just a little too light and spreads were a little too big.

All right, so those of you watching on Facebook you can see here these are my trades on CLNT, my order entry window here. The entry at 33, 41, and 42 selling at 63 and then no fill at 64, 62, and 64 so I hit the bid and sold the rest on the bid at 60. Sorry, at 40. Then, over here, this move on YY the pop up, the pull back, decent move there but wasn’t something I was able to capture.

Let’s see, let me move this over. Anything else? Alibaba, there were some opportunities on that one but I didn’t really see much there. All right, so let’s see. I’ll turn this around again. All right, there we go. Okay. Oh, EDIT. Yes. EDIT, interesting. I know Sam was talking about that one earlier today as well. For me, because it was running into the 200 moving average on the daily chart, I didn’t like it so that one I just left alone. Interesting, though. Interesting stock.

Okay, so game plan today. At this point, we’re basically just sitting tight and calling it a day. We had a great morning, slow and steady, 600 bucks, $650, and we’ll be back at it first thing tomorrow morning. That’s it for me, and I’ll see you all first thing tomorrow morning. Thanks, 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.