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Momentum is Moving Up +$7K! | Ross’ Trade Recap

Ross_5.28

What’s up, everyone? Here we are Tuesday morning back at it. Today, we ended up having a big momentum stick. SOLY up over 100%. This thing just took off. I think the low of the day was around $6 and ended up squeezing all the way up to $14 a share. I mean, just impressive stuff. I was able to capture over $10,000 of profit on that one stock.

Now, unfortunately, I have one red trade, which was a $4,300 loss, so my net profit today between three total stocks that I traded, about $7,000. It’s a good day. Not the best day ever, but hey, progress is being made. That’s what it’s all about, and we’ve still got three days left in the month of May, so we’re going to try to finish off real strong and see if this momentum that we saw today continues Wednesday, Thursday, and Friday. See you guys first thing tomorrow morning.

All right, everyone, so we’re going to do our Mid-Day Market Recap here, go over the trades from this morning. Pretty wild day. Last week, we had some really good action on Monday, a number of secondary offerings Tuesday, Wednesday, Thursday, and Friday. Market was closed yesterday for Memorial Day, and then this morning, it kind of started as a slow day. I had set my expectations pretty low, and then all of a sudden, we got this big move on SOLY squeezing up 70%, and I grabbed $10,443 of profit on that breakout. You can see it right here where it started at $6, and then all of a sudden, right here, started to ramp up, ramp up all the way from 6 to 9, high of day is 9.75.

Really awesome moves there. I feel like I did really well on that, but this is in my retirement account. In my main account, I am down $3,500. I had two trades in this account, SFET and PUYI, PUYI being a bigger loss, which is disappointing. It happened really, really fast, but it still puts me up net profit of $7,000 today between the two accounts, which is still three times my daily goal. $2,000 a day, and I’m up seven grand, so I can’t complain too much. It could’ve been a better day without that one loss, but this is just part of the deal with trading. You’re not always going to get green on every single stock.

Let’s go over. We’ll start by reviewing the gap scanner, and then the trades from this morning. This is our gap scanner right here. I’ll do right-click, historical time frame. 9:25 a.m. What you’ll notice is that this morning at 9:25 a.m., there really wasn’t a lot that looked that great. It was kind of a lackluster scan. The leading gapper was the Nasdaq test stock. That’s not even a real stock. It’s just a test stock. They use it for testing, I don’t know, hot keys and stuff like that. That was no good.

The second leading gapper, ARMP, 83 million share float. Now I pulled this up. I saw here a recent reverse split, gapping up with a catalyst; however, I just didn’t like the fact that the float was 83 million shares, so that one was off the list, so scratch, and scratch that.

Next one down, BIOC. Well, BIOC is below $2, which is kind of my cutoff. I mean, I’ll occasionally trade stocks below $2, but I don’t usually like them. This one, if it had broken the pre-market pivot right around here… actually, undo that, right around here, $1.63, the high there and there, that could’ve given us some move up to $1.67. Well, that’s only 4 cents per share. That’s not a lot of potential. For this one, I just wasn’t interested. This one was off the list as well. Next one down, REKR. That one’s too cheap. Didn’t like it. This one’s too cheap.

Now we have IMUX. Well, IMUX is $13, so this one’s a little higher priced gapping up 18%. It was starting to really take off right here, but by the time the bell was ringing, it was a red candle coming back down. The bell rang, it opened, and it sold off, so no, no, no, no, no. Then this one was a maybe but didn’t play out. This one’s too cheap. This one’s too expensive. It’s not looking very good, is it? MTFB, this one right down here, a little on the cheaper side. I just, I wasn’t sure about it. The float being 12 million shares is maybe just a little higher, so this one I just looked away from.

SFET. We’ll go back to my main account, and you’ll see that I’ve got $800 of profit on SFET. This one I did end up trading, and you can see it made this breakout here from 2.42 all the way up to 3.17, so this one was off the watch list. Now, the sad thing about this one is that I was sitting and watching it, but at this point right here when volume came in and it broke over 2.50, well, up until then, it only had, well, we had 3,000 shares pre-market, so that made 6,000 shares, plus a hundred, so 6,100 shares, plus a thousand, 7,100, plus 7,500 there, so 14,000 shares, and then 2,000 here, so it had like 16,000 shares of volume when it first broke this level of 2.50.

Well, that’s not enough volume for me, and so I just kind of… I was watching it. I had the level two window up just like this. I had it up. I saw it, but I was like, “I can’t buy this. It doesn’t have enough volume. The spread’s to big,” and then it broke 2.50, ripped up to 2.60, 2.70, 2.80, and hit 3.17 in one candle. It just went straight up, and I was like, “Shoot. Well, that’s 70 cents.”

I guess that goes to show that volume versus rate of change, rate of change is always going to be more important, but I did pass on it. I then bought the first pullback right here, the first one-minute candle to make a new high and scalped the move here up back up to 3.15, but that was only $800 of profit. I didn’t really do super well on it, and then it came back down here, and then that was it. It didn’t end up giving us a five-minute setup or a second opportunity. It was just one surprise move, the first pullback on the one-minute chart, and that was it. All right, $814 on that.

While I was trading that one, FSI hit the scanners. I pulled this up, and what I didn’t like about FSI was that on the daily chart, I felt like it was already pretty extended. I really like turnaround stories, stocks that have been beaten up for a long time and that are starting to turn around down here. Once they’re this extended on the daily, I don’t usually feel as comfortable trading them, so this one I left alone.

Watching the high-of-day MOMO scanner, and let’s see. Oops. Let me just scroll back down here. Scrolling up. Then SFET hits, so traded that one. Then SOLY hits the scanners. I see it hit the scanner. Initially, I was like, “Okay, it’s popping up here.” Go back to the one-minute chart. It hit a high of 6.25 and 6.39. Right here at 6.39, it looked to me like there was a lot of resistance. Look at this thing. It’s actually coming back up to high-of-day. Halt level’s at 10.08. That’s tempting, I’m going to be honest. Let me look at this one-minute chart. I didn’t even realize it was coming back up there. It looks like it’s double topping at high-of-day. There’s the break, and there’s $10 on the ask. 10.08 is the circuit breaker halt. It’s back on the high-of-day momentum scanner up 71% now. Beautiful. Wow. $10. $10.26 is now the halt level. Impressive.

Well, I’ve done well enough on it today. Maybe I won’t be too aggressive here about getting back in. It looks like the good setup would’ve been a break of $9 right down here. A little aggressive though considering the highest volume candles of the day have all been red candles. That is a definite warning sign, but boy, right back to high-of-day.

Anyways, when this first popped up right here at $6.39, it appeared that there was a pretty big seller, and it dropped down to 6.08 for a second. I was like, “Well, I don’t know. I’m not really sure.” Then it broke 6.39, squeeze up to 6.83, and got halted on a circuit breaker. Then at that point, I was like, “Well, I’m not in it yet, but okay, now I definitely am interested. I’m going to watch it coming out of this halt.”

This stock is now halted on a five minute long circuit breaker halt. Actually, it ended up being 10 minutes long. While that was halted, here we have PUYI hit the scans. This one is so disappointing. I saw this hit the scans, PUYI, and I looked at it. I was like… At the time, it was 6.14, 6.11, and then at 6.25, 6.28, 6.50, very similar to SOLY just taking off. It squeezes up here 6.60, 6.75. It looks like it’s going to get halted on a circuit breaker, and look at this. Beautiful. 10.50, 10.66. 10.66 is a circuit breaker halt. This is going to be an interesting one to watch if this does halt here coming out of the halt.

Anyways. It’s not halted yet. It’s gotta stay above 10.66 so not quite enough buy-in to push this right into a circuit breaker halt. Great job for any of you guys who did buy this pullback down here at $9. Really amazing breakout. Gotta be careful chasing them up here. I mean, this is now extended on two, four, five, six green candles in a row.

Anyways, PUYI hits the scanner. It rips up, and then look at this. I mean, I haven’t seen a drop like this in a long time. Check this out here and here and here. Someone has unloaded about a million shares today. What happened was someone right on this candle sold 350,000 shares. Someone just bailed out. Someone hit the market order and sold a huge position.

I suppose that’s always a risk in the market. It’s maybe more of a risk with the recent IPO stock because you have some insiders who maybe wanting to sell, and someone hit the sell button a couple times today and sold some big positions. Another quarter of a million shares here, another quarter of a million shares here. I jumped into it. It was taking off. For a second there, it looked good, and then someone hit that sell button, and then it dropped right back down. It’s actually the first time I’ve ever seen a drop as quickly as that as a market order. It happened in one second, and so I lost $4,300. I was like, “Well, wow. I just hit my max loss in my main account.”

See, if I’m down more than $2,000 in this account, even if I want to buy another stock, let’s say I want to buy this, I’ll just put an order down here at 9.60, it’s going to say… where is this? It’s going to say, “Cannot… ” Well, it doesn’t pop up, but it says, “Cannot place any new long positions,” because I’m below my max loss.

When I hit my max loss in my main account, what I’ve been doing is saying, “Okay, I’m done here, and now, I have an opportunity to start the day over.” I have my retirement account here, which also has the same $2,000 max loss. If I lose on both of them more than two grand, I’m absolutely done for the day. It’s been really helpful having this ability to say, “I hit my max loss on this account. This is serious. I’ve gotta slow down. I’ve gotta take a breath,” and I switch. Now I don’t see any of the losses, and I get an opportunity to start the day over, essentially. Some days, I have that opportunity, and I don’t take it because I don’t see anything that looks good. Other days, I see something that looks great like we had here on SOLY.

SOLY resumes from the halt, and it opens high. It opens right here at 7.40, and it dips down, and as it surges back up, I started buying. I bought 8,000 shares, 7.30, 7.40, 7.50. Added at $8. It squeezes up to 8.14 and gets halted up. I’ve got 8,000 shares going into the halt. It then resumes and hits a high of 8.70. Just like that, it dips down. I buy the first candle to make a new high, and it squeezes up again. Second halt, $9.10. Right in this move here, I made about $9,000. Right here is where I made my last thousand that put me over the $10,000 mark buying this little pullback.

This is one that I wrote off thing it was done because these three big, red candles. I just was like, “Well, this drop here was so ugly at this time. It broke below the VWAP. It broke the low of this pullback. It’s no longer going to be a good ABCD setup,” but, in fact, on this one, markets can because irrationally strong. This one is exactly that. Consolidation under $9, which I wasn’t watching. I was getting ready to do the recap. Then that break of 9, immediate retest of 9.50, which was this little trigger here, that little pivot, and then high-of-day is 9.75. Then, boom, squeeze all the way up to 10.66.

Now we’re on a little pullback. It’s a little choppy up here. We didn’t quite go into a halt. Of course, at this price for the stock to get halted, it needs to move really very quickly, but all-time highs on this stock are up here at, let’s see, $15 exactly. We’ve got a little bit of a pivot, or resistance point there at 13.77, another small one here at 13.93. The next thing that I see on the chart is 11.96.

This one with the FDA-approval here, we’ll see what it can do. I mean this might end up being a big move today and continuation into tomorrow. Of course, at this point on the one-minute setup, it’s so extended that it’d be hard to manage risks. Probably the safest thing to do would be to wait for another five-minute setup, a pullback on the five-minute or if I was going to be scaling this in this area, I’d have to reduce my risk of a smaller size. You see an 18, 17,000 share buyer there at .66, so someone’s holding it up a little bit. 10.77. High-of-day here is 10.83, 10.77, 10.89, 11, 11.25. 11.55 is the next halt going up this is now up 93%. Incredible. High-of-day, making new highs right now, 11.30. 11.30, 11.35, 11.40, .43.

The best place for me to trade this would be if it does get halted because then I can reestablish a low-risk entry and buy coming out of the halt. 11.40, .55 is the halt level. High is .44 right now. Now the halt level’s moved up to 10, to, sorry, 11.75, so it keeps moving up. It adjusts based on the average price of the last five minutes. This is going to squeeze out some really shot sellers. It’s going to get some long bias traders a little FOMO. Some people are going to be jumping in maybe at the high. It’s going to be irrational. There’s .45, .44. A little drop down to 11.16, so you’re seeing bigger spreads, more volatility.

I think that we traded this during probably the lowest risk time, sort of beginning of the move. The second best opportunity would’ve certainly been right here. This pullback is fairly high-risk but worked for those that maybe had a cushion to take it.

Being able to find these setups in realtime, this is what it’s all about. This is what we do every single day. Great job for those of you guys that capitalized today. It’s going to be a $7,000 green day for me unless I end up taking any more trades on this one, which I probably won’t, but you never know. We’ll see.

Anyways, we’ll be back at it first thing tomorrow morning, try to finish off this week and this month of May with a couple more green days. Again, those of you guys that aren’t already in the classes, you gotta get into the classes. You gotta learn the strategy so you can start capitalizing on these opportunities. I really encourage you guys to join the Warrior Starter or Warrior Pro classes. All right I’ll see you all first thing tomorrow morning. Bye, everyone.

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