Warrior Trading Blog

Travel Trading Station Red Day -$1.7k | Ross’ Trade Recap

ross_9.11

What’s up everyone? All right, so I hope you guys enjoy the recap today. Questions, comments, leave them below. I’m going to be trading for the rest of the week from California, so today, trading from the Delta Sky Lounge in JFK, and taking a couple of trades on two of the stocks that were on the gap scanner or high day Momo scanner. So enjoy the recap and I’ll see you guys first thing tomorrow morning.

All right, so why don’t we do a recap of the trades from this morning. So today, kind of interesting, Uma, something very unusual happened on this stock this morning. I really don’t know that I’ve ever seen this. So hey it’s always, after all these years, nice to have a first. If I pull up the one second chart, which is going to take us a second to load, what we’ll see is that this stock that was gapping up at the open and looking like pre-market, it was going to open around 360, 365 and make a move back up towards maybe $4. And then a 475 or 450. The bell rings and it opens at 232 which is really weird. And then it surges up and gets halted. I was trying to sort of think about what would have caused that to happen. Let’s go back to the one second chart to kind of see it. Like I said, it’s going to take them a moment to load just because one second charts are a lot of data.

So, okay, so here we go. So what I was kind of speculating was that this was some type of market order. If you put a market order… Well no it could have been a marketable order, but someone would have had to have placed… I’m going to speculate here, a limit order, a day order so it wouldn’t have executed pre market, day orders don’t. They execute as soon as the bell rings. The moment the bell rings, this opens at 232, so that makes me think that someone had a really big sell order and at the open, hit that sell order executed and just swept out anyone who had buy orders or was getting ready to place by orders in this area here. So let’s say someone had been holding this from back here and then they average down, average down and then they just left a sell order on their computer to sell it at 230 or something like that.

The bell rings and it opens high or the bell rings and all of a sudden it drops down. But it doesn’t really make sense why it would open at 232 and not open high, execute the order, dropped to 232 and then surge up. So I’m still not totally sure on what happened there. I mean the one second chart shows that it opened at 232 and then surged up to 265 and then it got halted, or 365 then it got halted. All right, so halted for five minutes on the resumption of the halt. This was how it started trading. I was really not totally sure what I wanted to do with it because I’d never seen something like this before. And so I did start to watch it around the 65 level. It breaks 65, squeezed up to 80 so maybe now we’ll just go to a one minute chart.

And as you can see, it makes a nice move. I mean bounces all the way up to $5. So my first trades on it, I got in here in the 380s and 90s for the break over four. So I kind of waited to get it in until it was a little on the extended side. And then of course because I was getting in high, I had to take profit quickly. So I only made $900 on that trade. And then it squeezes up here to 46, it pulls back. I hesitated on this pullback trade because it did a false breakout here and I just wasn’t sure, it then works. So then I add again at 480, 485, 490 for the break of five. Well it only hits 499 and then it pulls back. So I made another 700 bucks on that. So as of right here, I was up like 1700 on the name, which is not too bad.

Then it’s going sideways, sideways, sideways. Right here I get back in because I’m thinking “All right, well it held up on those last two, so I’ll get back in here.” Of course that’s the one that doesn’t work. So then I stop out. And then I get back in right here as it starts to curl up, I’m thinking “Okay, I’m going to give this another try,” and then it drops down here and I lose 40 cents per share. I’m in at 77 and I stop out at 30 or something like that. And that was 6000 shares. So just like that, one trade gives back all the profit that I had and I didn’t take any more trades on it after that. So kind of disappointing because I sort of… I guess I overstayed my welcome, because I was green on it, but this was also just a little bit of a different one.

I was kind of just caught off guard by that weird open and then sort of was chasing the break of whole dollars. The pullbacks, I was a little conservative on and then got in after I had confirmation. But then you pay a higher price for that confirmation. So yeah, but then this drop got me.

What I thought looked good here in this area, very light volume pullback. That’s a good sign of strength, light volume on the red candles. And so during this five minute period, I was looking at this and thinking “Light volume pullback on the five.” It’s just a little bit of pull back and I think it’s going to keep going. So I was just waiting for that opportunity to buy for the break over five and I was wrong. So a little disappointed on that. Sometimes it’s just the way it goes, but whatever.

So daily resistance, not til 645, still has room, but I just really wasn’t able to do super well on that one. So we’ll step back there. And then COE, this one hit the high day momentum scanner. I jumped in, it was 700 shares, partial fill on my order. You could see how I’d hit the scans here, boom, boom, boom, boom, boom. It squeezes up from 620 up, to 760. It’s gotten news on the day. It then resumed. And it resumes lower and immediately drops to 690, I stopped out at seven. So I … So on that one, I just, whatever, I stopped out with a $300 loss.

So yesterday, for $8000 of profit. Super, super solid day. Monday was a solid day. Today, little bit of a setback, but not a big deal. Just I think the important thing is also to step back when things aren’t really working and just to say, “All right, you know, it’s… I’m not feeling it, so I’m going to step back and live to trade another day.”

So that’s it for me. I will see you guys first thing tomorrow morning. Hopefully we have the gappers hold up just a little bit better. That would be… that would certainly be nice. All right, so I’ll see you guys first thing tomorrow morning.

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