130 [THE best daytrading setup. Jun 4, 2020]

  • GNUS will be main watch, remember this thing can go to 15, don’t be early on it, don’t get run over. Shorted 70kshares starter orls, stopped out. Held vwap very nicely, no reason to short it here at all, even a starter, unless it loses vwap. May add a starter on first red 5min candle. Shorted a little in anticipation of potential vwap loss after unhalt. Gonna build some huge size on this thing, that’s why taking small starters. Added on vwap fail, now 100kshares short. May add if it rejects off vwap, rejected but missed the add, halted again. Need to cover some here [10k] then covered another 10kshares on flush after unhalt. Covered some more, have 65kshares left. Down 55%, I only have a quarter left now. It went from being up 46% on the day to being down 40% on the day, next target is high 5s. Only have 1/5 left now, down 55%. And we all knew the offering was coming, from last week people started tweeting neg on it. Yeah for you daytraders it could definitely be a long, I’m not gonna do it unless it goes down to like literally 3.50/3. Cover rest as it starts to bounce in 5s [6kshares left]. Reshorted 37k shares as it reproaches vwap, if it gets to vwap will short more, maybe a little too aggressive with entry here, just afraid it will halt down and miss it. Added some 8.30s just below vwap, printed 8.30s and 8.30s where I had those adds, sometimes so lucky. Covering back down, 1/4 in 7s. Gonna give a little bit of room on my adds, covered about 1/3 so far, hopefully it can go back to sub 6s.
  • Also watching airlines, SAVE is main one, bc that’s the one up the most over the past 2 weeks or so. Shorted orls, stopped out, then reshorted lods. These are all taking out highs of the day now, hoping we get a set up tomorrow on these. One area I might short later today is if it breaks the lows of the current 60min candle, that’s one area I would take a starter.
  • LVGO, no a retest isn’t a fail, it’s just retesting this rising 20ema 60min, as long as it holds this 58.50 area. Sometimes breakouts re-test, doesn’t mean they’ve failed, just a retest, not all breakouts go straight up, most don’t actually. Ah didn’t set a hard stop, will put at bottom of flush. I’m thinking all the breakout chasers from yesterday just got stopped out of it. It was such an obvious breakout, sometimes it’s not great when things are too obvious.
  • Don’t short too early, bc they’re gonna be better setups. You want the stocks to be as extended as possible before you short them, let everyone get squeezed out. That’s the reason also I didn’t want to short GNUS yesterday, I said it’s a better short at 10/12 tomos. I said it’s an ignore for me, and tomos if we get to 10/12 that’s when I want to short it, and that’s exactly what we got. You want to get those few setups that go crazy, the setups where you almost can’t lose money. That’s the key to shorting momo stocks. You want them to squeeze out as much as possible, so you don’t get chopped up on them, to a point where they almost can’t go higher, and then you start looking for a weakness to short them, that’s where you have the best odds.
  • The best advice I can give you is buy stocks that are going up, that are breaking out. Buy stocks that are going up and short stocks that are going down. Don’t try to find tops or bottoms.
  • I’m getting mixed signals. I think we are just a day or two away from a pullback in the markets. Software related names are weak, all these beaten down SPY stocks and Russell stocks are getting extended, full fomo mode rn. Gonna size down on a bunch of longs anticipating pullback, I’m playing defence here. Moving stocks up aggressively. We’re seeing some peak euphoria, usually not a good sign.
  • SHOP could be a short here, going to do a starter on it. Just losing the 20day. I’m risking $10 to potentially make $100 downside [to 50day]. It’s still holding 60min hls, if it starts breaking lower late day, takes out lods, I may add even more.
  • VISL, one, we are in a chasers market, these kinda stocks are doing very well. Two, this thing has big big volume. The intraday chart, you had this range, and you had higher lows for several hours [1min] and you get this dollar breakout. Textbook. If this thing goes to 16 I’m gonna buy all of you a BMW x5m. Need to sell some [up 40%] move stop to b/e [99c]. Selling 10k shares every 10c.
  • MARA bought some on btc move and some XSPA bc why not, chasers market.


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  • Idk if I’m a genius, but I have managed to learn a few things about trading.

#shorting #masterclass  #daytrading

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