152 [Slow melt up continues but some short setups may be developing. Jul 10, 2020]

  • TSLA, I am short but the thing is if it starts breaking these levels, look where it found support, it undercut the rising 20ema then it reclaimed, now it’s building hls. If this thing starts breaking out of this pattern it’s gonna go to 1600/1700. The same way I switched from long to short a couple of days ago when it gapped up on this day, I’m gonna switch from short to long. Bc if I can find an entry here, you can risk $20/25 to potentially make $200/300 on the upside, that’s the way I look at it.
  • TSLA I would be a very scared short, like these people shorting on fundamentals or valuations, oh man. Look at TSLA it’s a very extended stock obv, you can’t disagree with this, it’s hugely extended, it’s a megacap stock that’s up 300% in 4 months. But look at what it’s doing, it’s building hls, look at the 60min chart. Now what do you think will happen when it busts through this trend line? They get recycled, new funds get short, the ones that were too early maybe hedged or got out. I personally believe TSLA is in a bubble, I don’t believe they deserve this valuation, but I follow technicals not my opinions, I find that it makes me much more money. TSLA reminds me of TSLA last year, when it only went sideways a few days and then it kept going, then it broke out and went up another 50%.
  • TSLA covered short, then bought 1400shares starter, stop lod. TSLA is in ludicrous mode rn, bought another 1100shares. Okay bought another 300 shares, 3.97M position, 100k risk. Fat finger sold all, rebought $2 higher. Back when it broke out here, I’m so happy I readded, bc I got stopped out on this day [25/6/2020] where it ended up bouncing off the rising 20day, then I rebought it this day here [29/6/2020], I realised my mistake. Sometimes when you sell a great stock you just have to rebuy it slightly higher, you can’t afford to miss a move like this.
  • MRNA, bought a boatload of shares yesterday late day [30kshares], mid/high 64s. This thing could not breakdown, it undercut the 50day, then started building hls, and now it had a breakout day yesterday.
  • SPAQ, bought this thing yesterday, was too early the first time around, lost like 75k on it. Had news intraday that they’re gonna merge with EV maker fisker, combination of two of the hottest themes, spaqs and evs, so this was pretty much a no brainer, especially with the volume. So I rebought it, it dipped undercut the vwap started building hls, then right here is when I bought 75kshares. Sold some before close, sold some AHs, sold some premarket, only 33kshares left in case it wants to go to 20 or something.
  • NIO covered yesterday when it took out intraday highs. Started building hls, then when it took out this 14.14 area covered it all. Look at how it built these relentless hls into the close, that’s a sign of demand. When you have an extended stock doing something like this, you gotta be careful as a short. In a relentless bull market you gotta play defence as a short, you really have to.
  • SQ took a starter short. 15kshares short now, it’s an extended stocks breaking down on the 60min. Having some power down candles. Support becomes resistance, that’s what you wanna look for on these overextended names. Finding some support, now lets see if it can start getting rejected on the 10/20ema now they’ve both starting sloping lower.
  • WKHS looks vulnerable, shorted a little. Stopped out, held the rising 65ema so far.
  • UAVS triggered again. Bought 100kshares UAVS, again, just for fun. This is the kinda stock you can risk 15c if it goes it’s gonna go up $1/2. I think this is the new INPX, I traded 6 times and lost money 5 times on it. Broke hod, bought another 100kshares, separate stop points. Gonna raise both of the stops, at this point this breakout shouldn’t come back, should go straight to $2 now.
  • A lot of these extended stocks are holding up well, they’re barely red and the market’s been weak. Okay now market bouncing. Now we are starting to see some second leg weakness in the markets, tried to bounce a bit but couldn’t. A lot of the momo leaders look good though, so there’s no reason to freak out, holding up really well above their 10/20ema on the 60min.
  • There’s two types of stocks; you have institutional quality stocks, which I’m mostly in, and then there are the pump stocks, the ones that are driven by retail buying, chatrooms, wsb, the rh type of stocks. How can you differentiate? Well just look at the share price, if it’s a $1/2 or even sub dollar stock, it’s not an institutional stock let’s just say that. If it’s a higher priced stock that’s trending and riding the 10/20day that’s an institutional quality stock.
  • Especially if you’re a breakout buyer. As a breakout buyer you can get decimated pretty quickly in a market where breakouts don’t work. I’ve been there so many times. Yeah you wait, sometimes you have to wait for months. Remember when the markets tanked from late feb to late march, I didn’t buy any breakouts in this time. I was mostly trading TVIX, there was no breakouts, you just have to wait. This is not where the big money is guys, this is not a great period to make money[feb/mar2020]. Yeah you can be lucky and catch a big down move in the markets and feel like a genius, but 35% declines in a month, like last time that happened was 2008, before that was 1987, before that was in the 30s. THIS is where the big money is made [apr-jun2020], this is where you can double triple or quadruple your money with pretty little effort, if you have your setups down. You don’t need to nail the bottom, I started buying breakouts like here early april. There are still swings you can do, mostly on the short side, but like kind of a bounce kinda setups, you’re gonna have to do more mean reversion stuff.
  • I’ve had a few days in my trading career where I haven’t made any trades, but I’m a junkie, I have to do some trading everyday. I generally, I’m aware when I’m boredom trading so I do very little size, like no size. It’s all about being aware of your gambling urges.
  • ROKU, this is what happens when you have a breakout out of a range like this, this thing went from a laggard to a leader. So I kinda anticipated it a bit becoming a leader, just because it took out this long long range. When you have like a multi year breakout, this thing was a big momo leader back in 2019, where I also traded it several times, then it kinda became a laggard, and now.. Memorise these patterns. This is why you have to get off your asses, actually you have to sit on your asses and study these things. You have to get on your asses and study stocks. And obv a bull market is very helpful.
  • It’s all about studying, you have to invest in yourself. This is a profession like anything else, think about it, how long does it take to study for a profession, usually takes 3-5years, to get a degree. Trading is no different. If you wanna become good at this game, you’ve gotta study. And the difference between trading with most other professions, if you suck if you’re a sh*tty engineer or doctor, you can probably still get a job, or even if you’re mediocre like you can be a mediocre plumber. But if you’re a mediocre trader, you’re gonna lose all your money. In trading, you have to be at the top of your game. You have to be among the 3/2/1% of all people who are actively trading stocks. Mediocre is not enough, you have to become great. If you want to make money, you have to be good at this, if you want to make millions per year, you have to be f*cking great at it. But mediocre is not enough in this game, that’s the big difference between trading profession and pretty much every other profession.
  • Okay guys I’m gonna show you some textbook 5* breakout patterns. This is a 5* chart [OSTK 05/2020], this thing went up 600%, pulled back a little bit, where did it find support, this magic yellow line called the 20day. If you go back and study thousands of stock charts, charts of leaders from every market cycle 30/70/80/90s, you will find stocks found support on the same MAs, there’s nothing new under the sun. Then it had another leg higher, and here it had a htf breakout on higher volume.
  • M also like this for a bounce, looks really good on the weekly, has big range, this thing could easily go back to $10 once it breaks this range here, $7 area. Maybe we start getting a rotation out of growth back into some of these beaten down names next week. We’ve already had several of those rotations, this is gonna be the third since the march lows, between growth and value, extended and beaten down.
  • Yeah I always use mrkt orders. Usually when I like sell partials I use a limit order, but when I buy a position or get stopped out I always use mrkt orders, I don’t believe in penny pinching. You either go for the big moves or you don’t. I’ve been in so many instances when I try to use limit orders on a breakout and I end up missing the move, or I get stopped out and try to use limit orders and wait for a bounce that never comes. I think using market orders is the cheapest way to trade, took me many years to realise it, limit orders are for suckers.
  • How do I find big earnings growers before they get going? Well I keep track of them, you have to keep track of all the stocks that have great earnings. My A and B watchlists, 45 + 32 stocks, these are the fastest growing stocks with the best technicals. Then I have my C watchlist where there are slower growing stocks that don’t have as good momo and technicals. So I have a total of 141 stocks I manually update every quarter when they report earnings. You’ve gotta keep on top of these things, no one else is gonna do the work for you guys, you’ve gotta do this work all for yourself. You have to track the best of the best, and you have to trade the best of the best, and you’ve gotta be ready, when these things go, they go. You’ve gotta be ready.
  • My job is to motivate you, and inspire you, and also brag a little bit. The thing is I didn’t think it was possible to make more than like 10k in a day, I remember I saw someone posted like a 50k day, back in 2013, I didn’t even believe it was possible to make that much money, so you kinda need to see my portfolio rn. 3.3M in unrealised profits. This is what happens if you have a solid process, if you’ve spent thousands of hours studying the stock market, studying how stocks move, this is what’s possible. I started with like 3/4k back in 2011, I had no idea what I was doing, I blew up 3 times, this is not easy, but it’s possible. You need to apply yourself, like I said before, you can’t be a mediocre trader, in trading if you’re mediocre you’re gonna lose money. You have to be at the top of your game, you have to put in more hours than anyone else. And not just doing some random things, you need to study. Look at NVDA, it’s a big market leader over the past 5 years, just go back study the weekly chart, where did it find support, look at these purple and yellow lines, there may be something there, but you have to study it. Look at the 10/20/50 on the daily, all these things move the same way. You have to find these patterns, and once you learn the patterns, how stocks move, and when they move, and which stocks move, you’re gonna make millions, but you have to put in the work. The weekend is a great time to put in the work.
  • HMNY is the stock which made me financially independent. That’s the stock that started the run, I was stuck in a rut between 300k-500k account size for several years, then HMNY started a run when my accounts went from 500k to 2.5M in 6 months. But it’s not about 1 or 2 trades, it’s about hundreds or thousands of trades in a year, it’s about consistency. We’re not here to get lucky, we’re here to get guaranteed rich, we’re here to get consistently lucky, we’re here to develop an edge.


  • Okay so we are a cult right, we’re not a sect we’re a cult, we’re trying to do a new thing. Cult is more extreme, we’re gonna go for the extreme variety.
  • What’s the point in making money in the markets if you can’t spend it on some vulgarities?


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