Warrior Trading Blog

+$545 this AM plus a new Swing Trade going into Friday


+$545 this AM plus a new Swing Trade going into Friday

All right, so we’re going to do our midday market recap here, go over the trades from this morning. While we do the recap we’ll keep A-M-M-A on watch to see if it gives us a trade opportunity. High of day right now is 295. And I’ve been kind of watching this one because it just made a pretty big move. Now, I lost money on it earlier this morning, getting in at 293, not selling on the pop up … Or, 193. Not selling on the pop up to 215, and then getting stopped out as it came back down to this consolidation. It consolidated, and then it broke out over the V-wap. The good entry might have been around 186 here, popped up, and then squeezed from 186 all the way up to 295.

Now, when a stock goes parabolic like this, and it squeezes up a full point in 15, 20 minutes, a lot of times that first pull back doesn’t take the form of a typical bull flag because it’s so extended to the upside. It’ll pull back and then it just continues to pull back. Now, this interestingly pulled back and has bounced back a little bit to a high of 289. So I want to keep it on watch to see if it sort of consolidates in this area and maybe gives us an opportunity for a trade over the highs. But I do want to be a little cautious on it. And I’m already down $900 on that name. That’s the one stock that I’m red on today, which is a little disappointing.

So like I said, that first entry for me, jumping in on the high day scanners, it hit the scans. I had a great entry at 93. It popped up to a high of 215. Could have taken profit and I didn’t. So ended up being a loss, unfortunately. But in total, finishing the morning right now up $545, and I have one new swing trade that I’m going to be holding. So my new swing trade that I’ll show you guys is P-G-N-X. This was straight off the watch list. And what we have is a daily bull flag, and so I was looking for this to break out over that level. So those of you watching can see this pattern. So that’s the pattern right there, and my entry is at 720. So I have an entry down here at 720. Stop is $7. High of the flag was 735. So I’ve got my stop at 7, I’ve got my 2 thousand shares at 720, and I’ll just hold this until I either get stopped out or I hit my profit target.

I’d like to see it move up towards $7.50, maybe towards $8. There’s a couple others in this same set up that I’ve traded in the last … Or that were on the watch list in the last couple days. The watch list has actually been really, really strong. Like I said earlier, Rev was on the watch list at $18. It’s at 27 today, which is phenomenal. I mean, it’s up … Like I can’t even really believe how much it’s up. It’s up nine points from where it was on the swing trade watch list. So the scanner that I used to find this was I was looking for a stock that was up. I was looking for a stock that was up more than four percent the previous day. So any stock up between four and ten percent, and then I just looked through that scanner.

And so this was the scan from yesterday, although I think this is going to be stocks that are going to be on it today, change from the open. So I’ll go through this later tonight, and I’ll be looking at these stocks, and I’ll see, “Okay, well are any of them at the beginning of their move?” So Rev, right now, is at the top of its move. But when we first saw it, it was way back here at 18. So the move had just started. I was looking at it right here and I thought, “Well, it looks like it has room up to the 200 moving average.” The next day, opened, it dipped down. Was sort of a [dogee 00:04:02]. I didn’t take a trade, and then it gapped up the following day and just has continued higher since then.

So that’s the scanner, looking for that small cap break out. And the scanner that I found P-G-N-X on I believe was that same scanner, because I think yesterday this was up more than four percent. And then I looked at the chart and I liked it. So anyways, sitting tight with this and I’ll keep looking for good swing trade set ups. But everyone on the email list should have gotten an email and a text message for that swing trade alert, okay? So anyways, now today kind of a little bit of a choppy day. It wasn’t the easiest one. My very first trade this morning, we’ll scroll back up, was on Z-Y-N-E. In at 1087, out at 1105. $450 bucks like that. Good start to the day, but the stock ended up rolling over pretty hard. It’s at 962 right now. So even though I was able to capture some profit on it, it really wasn’t clean the way I was hoping.

So that was my very first trade, and then the second one was on D-X-C-M, which is a little unusual for me. I don’t usual trade this price range, but I just really liked the way it looked. Right out of the gates it sold off and so on the first pop I looked to get short. So it popped up here and then I shorted it at $45. You can see my short here at 45. So shorting 500 shares at 45, covering half at 4461 for 40 cents of profit. Covered some … Covered the rest at 4477. So ended up making a couple hundred bucks on that. Decent little trade. Ended up obviously dropping down here to 4350, coming back up. And as it came back up right through here, I was noticing a bear flag.

Now the bear flag was more noticeable on the five minute chart than on the one minute. So I was trading off the five minute chart at that point, and I decided to short this again. This was after the A-M-M-A trade that I already talked about. Entry at 93, and I guess 99, exit at 79. A small scalp on Z-Y-N-E also. Only made a couple bucks on that. And D-X-C-M, here we go. So short at 4453 and 4431 on this bear flag, which was on the five minute chart. Looking for the break of 4425, so it was on this green candle. And as this started to roll over, that’s when I was able to cover it. So you can see here again, those of you watching on Facebook, so big drop out of the gates. It pops up and I’m short right around this area, 4425, and then it rolled over. So short 4453, 4431, covering at 4395, and 4408. So ended up total with $364 on that trade. Not like the most impressive winner, but green is good.

Next one, S-P-P-I. This one, sort of a surprise move. It ended up being really strong. And I jumped in for the break of 13 as it was squeezing up here. Basically just jumped in to ride the momentum. I actually took four trades on this one. I might have traded a little more today then usual, but I was mostly trading with smaller size. So when you trade with big size, 10 thousand shares, 15 thousand shares, et cetera, you don’t trade a lot. You go for one entry and one … Well, maybe three our four exits. But you get in and you get out because with that kind of size, you can’t just move in and out. You can’t pivot really quickly and get in and get out and get back in. You get in, you take your position, and you hold it, and then you get out. And one of the things that I’ve said in the past, I sort of oscillate between these two strategies.

One strategy is go big and be aggressive. Get into a stock with a lot of size, just look for one big winner. Because if you get one of those a week, you’re going to do really well. However, the other side is that when you take those big trades and you lose on them, you can really get crushed. And you’ve seen that happen to me more than maybe my fair share of times this month. So then the other strategy is to bring it down to small size. But then when you’re trading with small size, inevitable, you’re also going to want to kind of reduce your risk … Or, sorry, when you’re trading with small size, you’re inevitably going to want to trade more to try to build up the gains, because one good trade isn’t going to be a four thousand dollar winner.

So it’s kind of like forces you to trade a little bit more. And that’s what I did today. I traded a little bit more. You can see obviously, I have six stocks up here, 36 total commission trades, and 33 thousand shares. So share size is small, but a lot of trades. Anyway, so S-P-P-I, long on the move up to 13. Tried to short it off 13 to come back down and then switched directions and went long again. In total made only $148 long and short on the stock. I really didn’t do that well on it. But that’s okay. A little profit is good.

Next trade was, let’s see, and let’s just take a peek at A-M-M-A. I said I wanted to keep an eye on that. So that hit a high of 89, is now pulling back to the 9 moving average. So that’s fine. Let it consolidate in this sort of range here. Kind of flag out a little bit, maybe something like this. And this may not give us another opportunity. I’m not really sure. Like I said, once stocks squeeze up and get this kind of parabolic, we don’t always get that really good pull back entry. So that one’s a maybe. All right, so that’s A-M-M-A. And then the last trade, I guess the last trade before my swing trade was ROKU, R-O-K-U. This was an IPO today.

Now, on this one, I kind of mismanaged the way I probably should have traded it. I said as it was opening that I I’d be watching for the first one minute candle to make a new high. And so that meant I’d be watching it probably over 1633 with a stop down here at 1577. So first one minute candle to make a new high, however, the first one minute candle had this just such a dogee. It was squeezed up and then dropped down. It made me nervous. So when the next candle popped up I was hesitating. When this candle broke that high, I was like, “I was about to press the buy button.” But remember, I’m up 400 bucks on ROKU, so that means at the time I was about to press the buy button, I was only up like $150 on the day.

So I was like, “I’m just not sure it’s worth the risk. It’s an IPO stock. I feel like I’m going to get myself into trouble. I think I’m just going to sit tight on it.” And next thing you know, it’s at 1650, 1670, 17, 1750, 1780, and then as it pops up to 18, I got in here for the break over 18. So we have this little pull back here, and I was able to sell at 1820, 1816, 1813, 1815, and 18. So scaling out was small size. And I’m happy with that. It wasn’t the absolute best trade. I chased it. But I did feel pretty confident that it would probably break over that 18 level. So anyways, took a nice trade and that’s fine. Did okay on it. And that’s it for me. so $545 realized profit. 500 a day is good money and I’m happy with that.

I’ve got a swing trade that I’ll most likely be carrying into tomorrow. Looking for P-G-N-X to get over 750 and start to make its way up towards 8. And it’s a nice set up. It really is. I’m definitely happy with that. Hopefully it’ll continue to work in our favor. So this is going to be one of the first times we’ve had a real break of the 200 moving average in a long time, so it’s an important turning point, and you can see it happening right here. So I’m happy about that. It’s going to be a good trade, I think, going into Friday. And hopefully we can finish off the week, and finish off the month, strong with a couple of green trades on Friday.

Yes, P-G-N-X was off the scanner. This one, it was off the scanner. I believe it was this scanner here being up more than four percent yesterday. So any stock that’s up more than four percent, between four and ten percent. Now, I do that because I don’t want to look at a stock that’s up 80%. If it’s up 80% I’m not going to swing trade it. It’s already extended. So I’m looking for ones that are only up a little bit, between four and ten percent. And then I look to get in the second day for continuation. So that’s the whole idea on this set up is that it’s second day continuation. So I can pull up my watch list here. Let’s see. Actually I’ve got to log in to the website.

Now you guys can see the swing trades. I do the watch list in the evening. Often times, like around 8:00 or 9:00 PM. It’s a little late. So if you guys wanted to check it in the morning, that would be perfectly fine. It’s always going to be posted by the morning. So you could check it around 8:30, 9:00 AM. Just take a look at the stocks that are on there. Sometimes the next day they end up not looking good. They’re gapping down or whatever it is. But it the case of P-G-N-X, this one was looking pretty good this morning, so that’s why I took the trade. It is a little disappointing though when you put in the work of building the watch list, and then the next morning, the market’s gapping down, and they’re all looking kind of sideways or whatever.

F-L-D-M, this one was on our watch list. This was on the watch list on Wednesday. Sorry, on Tuesday. Same type of set up right here for the break of the 200, and look at that nice move here. This was yesterday from 515 up to 550. So today it doesn’t seem to be holding those gains, but it was really, really looking good yesterday. So similar type of set up there for a break over that moving average. That one’s still on the watch list. But obviously it already made its move. So yeah, this is a scanner where I’m finding the small cap break out ideas. And then I’m also looking for daily bull flags, which this P-G-N-X happens to be both a small cap break out and a daily bull flag scanner.

But often times, the bull flags will be stocks like H-M-N-Y, that are up quite a bit, have just made a really big move, and we’re looking for that first candle to make a new high. M-R-N-S, this was on our scan for a bull flag back here in the three dollar range. Ended up obviously breaking out pretty nicely. I got in it on I think this day here, where it popped up, and then of course we have that big gap, which was really nice. So anyways, you guys will be able to see the watch list and I encourage you to sign up to swing trade email alerts and swing trade text alerts if you’re not already on the list.

You can go … Any chatroom member can go to the member’s dashboard, scroll down the dashboard, and you’ll see swing trade watch list. You’ll see Jeff’s swing trade positions on his option trades, and you’ll see the link to sign up for email and SMS alert for swing trade alerts or whatever. Okay so, that’s about it for me today. Coming up on 12:30, and pretty happy with my gains right now. So I’ll sit with that.

I’m not going to over-trade. $500 a day. This was really the goal. To get green today, it was a little bit of a struggle. I was red. I went about $230 into the red. And then I was able to dig my way back out, and here finished the day green. So very happy with that. And goal is to do it again tomorrow. And then do it again for every single day for the month of October. All right, so we’re about to start a fresh month and getting disciplined before the new month starts is always a good idea. All right, so that’s my game plan. I’ll see you all first thing tomorrow morning. Okay, buy guys.