Warrior Trading Blog

Rebound Day! +$8,892.57!

rebound day

What’s up, everyone? All right, so here we are, Monday morning. I thought today was going to be a slow day of trading. Gap scanners were dead. Our biggest gapper was MYO, gapping up only 25%. Didn’t take any trades on it, it faded.

 

We were watching a couple of sympathy plays from last week, from Friday, HEAR, BLNK. Didn’t get any opportunities on them, they didn’t work out. And so we were sitting at, like, I don’t know, it was 9:45, 9:50, I hadn’t taken a single trade. I wrote down, I made it a calendar event on my phone, I said stress free trading, because I just wanted to have a kind of low-stress day. I just didn’t want to have another big blow-out loss.

Then all of a sudden IMTE starts to take off. This is a stock that went all the way up from, what was it, like a seven to eight dollars all the way up to $40. Here we go, Monday morning, it squeezes from $12 up to 14, 15, 16, 17, 18. As it starts to take off I’m watching it, wanting to get in but not feeling like I can manage my risk and, boom, I see BOXL hit the scanners. Sympathy momentum, jumped in at eight dollars. It squeezes up to nine dollars a share and with one trade, $8,900 of profit. My work is done. Low stress, easy day of trading, one trade. Commissions today are going to be very low compared to some of the days last week, so we’ll break down all of the entries and exits on today’s trade in today’s Midday Market Recap.

All right, everyone. So, we’re going to break down the trades from this morning. Today, you know, like I said earlier, this was one of those days that I thought it was, it just seemed like a very slow Monday, very slow start to the week. We didn’t have a lot that really looked all that great this morning. The gap scanner was just dead. I mean, the only thing on there was MYO and you can see I just didn’t think it was going to be worth trading.

The bell rang and it just sold off. It was not strong, you know, and it was just kind of predictable. It just felt like pre-market it was already breaking down and the bell rang and it was over. So no play to the long side on MYO. Certainly some short scalp opportunities for a fade right out of the gates if you had shares available to borrow, you know, which again can be a challenge with these but that was really the only play on that.

That was pretty much it for the watch list in terms of fresh gappers, so I was just kind of thinking, you know what, this just might not be my day. I had put on my calendar stress free trading today, ’cause, you know, it was just one of these things. I mean, it was a good weekend but it was a long weekend, driving down to New York City area for Mother’s Day and then, you know, coming back up last night. It’s a lot of driving and the weather was crap. It was raining and that doesn’t make the drive any more fun, so, you know, I was just kind of a little tired this morning. I was like, “You know what? Just go easy. Just get yourself green on the week. You know, have a green day and don’t push it too hard.”

So that was sort of my plan and when there was nothing on the scanners I was just thinking, you know what, today might be a day where I don’t even trade. MYO ended up being, you know, just weak, so that didn’t work out. BLNK was on the watch list. This one was possible continuation over yesterday’s high, right under the 200 moving average. You can see that. That’s a big wall, it’s just holding it down, couldn’t break it, no good. So no opportunity on that one, no trades. HEAR here, you know, this was one that we were kind of watching but it was choppy, false breakouts, popping up, dropping back down, popping back up, dropping back down. It just couldn’t hold that level.

So nothing on here and, you know, we were sitting at, what was it, close to, my first trade was at 9, well, let’s see, let me scroll up. My first trade was at 9:57, which is kind of late for my first trade. I’m usually taking trades earlier than that and here’s my P&L for the day, up $8,892 on a slow Monday. So where did that come from?

Well, IMTE started to take off, and this one I had talked about a little bit pre-market. I said, yeah, it’s worth watching, the first daily candle to make a new high. That would be over yesterday’s high of 13.06 but the volume was so light pre-market I just didn’t think there was going to be really anything there, and it starts to take off. You see it pops up to 13.50, drops back down to 12.10. I was like, you know, kind of watching it but I think at this point, by the time it got halted. Let’s see, where was it halted first? It was halted, trying to remember where it was. It was halted at 16.44. So that was the first halt right there and at this point when it was halted there was only like 60,000 shares of volume, so it was very thin. You know, yeah, you could have gotten in it, I guess, but the spread’s were big, it was very thin. It just wasn’t very strong.

So that halt time was at 9:50 AM. Remember, when this was strong last week, what stock was strong with it? Two of them were, BOXL and SEII. So I was watching both of those for sympathy momentum. This resumes. It squeezes up to 19, ends up tapping out at a high of $21 and fading back down, but that was up like 75% on the day. So while that’s surging up I switch over and I look at BOXL. I saw BOXL was also surging up. So right here it broke over this little pre-market high of 7.47 and the reason I chose to trade this one is because the volume was higher and the spreads were better, so I felt like I could manage my risk.

So I jumped in it at eight dollars or I started adding at 7.90 and then added again at eight. I was, on this one, like, “I’m going to be aggressive. IMTE is squeezing up. BOXL, I’ve already done really well on this name. I know this is one that I can do well on. I’m going to be aggressive.” I was aiming for a 20,000-share position and thinking potentially a dollar per share, potentially a $20,000 winner. That was my back-of-the-mind potential on this. So I jump in at eight dollars and then I’m trying to add as it’s squeezing up and it’s prompting me with my confirmations. You know, I’m trying to add with my hotkeys, so I press Shift+1 and I press Enter, Shift+1 and then Enter. What I kept doing is I kept canceling my confirmation. The reason I have this setup is I have a warning if my size is bigger than 15,000 shares.

So my size was bigger than 15,000 so it was triggering the warning. I was accepting it instead of overriding it. So I screwed up on that twice and then finally I was able to put out the order to try to add, going up here into 8.50 and 8.72 and cannot exceed buying power. I maxed out my buying power on this stock, which, you know, that doesn’t happen that much. I’ve got $133,000 in this account. I don’t see that message very often, but today I maxed out my buying power on BOXL. I couldn’t go heavier. 15,000 shares was $120,000 in the stock and, you know, I mean, I guess it happens. I sort of forget how much money it is sometimes, but it’s a eight, nine-dollar stock. It’s pretty expensive. 10,000 shares is 80, 90 grand. 20,000 shares would be $160,000. So I was in full size and when I was trying to add first I was getting prompted with my rejection order for max share size and then I was getting rejected for insufficient buying power.

So all of my attempts to add were rejected and so I ended up holding my core position from eight dollars all the way up to a high of 9.05. So it taps 9.05 and I had prepared an order to sell half, let’s see, so where was that? So I sold half right here at 8.99, right under the whole dollar, ’cause I was thinking, all right, you know, I’ll take a little bit of profit. So I put out the order there, I guess, at 7.99 or 8.99 and then … Actually, no it looks like I tried to, see, I was kind of having an issue this morning with my hotkeys. It looks like I actually put the order out to sell the whole thing. I was trying to just sell half. So I put the order out to sell the whole thing. I filled 6,000 shares. It comes down and then I tried to sell more at 9.01, 8.81, 8.53, 8.30. I ended up selling the rest at 7.80.

This one was pretty disappointing because, even though IMTE at 10.04, you know, IMTE at that point was still squeezing up all the way to right around 10.10, BOXL just kind of ran out of strength. It just kind of slowed down. It dropped all the way back down here to a low of 7.56 and then it popped back up to 8.65. That right there is why I usually try to sell into pops rather than into drops. Because that right there is almost, I mean, that’s almost a one-dollar bounce off the low.

The 3,000 shares I sold at 7.80, I was selling it there because I was worried this was going to halt going back down and then open lower. So I was trying to manage my risk there and just get out of the trade. In hindsight I could have waited for it to bounce back up, but I don’t usually like going from that green to red so I was just sort of bailing out on the rest. Unfortunately this one didn’t hold up very well. I still keep it on watch over 8.50. It’s definitely interesting there. You can see it’s holding up pretty well. IMTE at the moment is curling up a little bit, so both of these are sort of set up for potential second moves. You know, this is a tempting set-up. The problem is that your stop is down here at 8.15, kind of the low of the last five-minute candle. So, you know, your risk is 35 cents. That means your profit target needs to be like 70 cents, which means it needs to break that level and go through the highs.

So here we go. 8.50, by 8.60, just watch it from the sidelines. My concern is that we’ve been seeing some false breakouts where it will hit a high like this and then it drops back down. So we saw, I think, what was it, 4.83 there for a second? High is 8.63. Now it’s 8.41, 8.42, and you can see 27 is down here, so if it breaks 8.42, 8.40, it could go back down to the 20s pretty quickly. This right now is looking like it might be a false breakout, and given the fact that it’s like 11 AM, a false breakout wouldn’t be that surprising. It also may be one that kind of is just a little bit choppy. It grinds up a little bit before it really starts to open up. Those can be a little bit difficult to trade as well.

So, anyways, today’s a day where I didn’t really push it too hard. I took one trade, one entry. Well, I was trying to add but one trade,  one winner, and I’m okay with that. $8,892, that’s a good rebound from a couple of red days at the end of last week. You know, hopefully, we start to see a little bit more, you know, a little bit more recovery on some of these small caps. The last few days were really slow and today was slow, also, except for IMTE and BOXL. Those were the only two that were really all that strong. So, anyways, yeah, today’s a green day and I needed it.

So back in the saddle here, Monday morning, where’s my calendar? Hm, that’s weird. I don’t know what happened to it but I want to grab my calendar when I can find it and then mark down today’s trades and, yeah, I feel good about that good, strong start to the week. So, $8,892.57, when you trade with big size, the winners are big, the losers are big as well. I had a $10,000 loss last week. So, you know, this is just kind of helping me get out of that hole and I’ll be back out of it before you know it and back to all-time highs on the year.

So let’s see. Right now I’m sitting on the month at, let me see. Scroll down, all right. Sitting at $62,000 on the month, so $100,000 month is not out of reach but I’m not sure that’s going to happen. This might just be like a 75, $80,000 month if it finishes in good shape. So that’s okay, that’s still really, really awesome. I’d be really happy with that and, you know, we’ll just keep stacking up those profits, all right?

So that’s it for me today. I hope you guys have a great afternoon. We’ll be back at it first thing tomorrow morning, same routine, 9, 9:15 for pre-market analysis. You guys watching on YouTube, Facebook, love for you guys to give us a thumbs up if you enjoy these videos. Subscribe to the channel, see more videos like it, and leave comments below. We’ll come back and answer all of them later this afternoon.

All right, everyone, I’ll see you all first thing tomorrow morning.

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