• CAN, hot sector, I bought it here yesterday when it took out hods [20/12/2020 3pm], these coin stocks are all going; MSTR, SI, RIOT, MARA. This CAN had a big run, pulling back, digested, been building hls for like a month and a half, and yesterday it had above avg volume, was a good r/r and today it’s gapping up, gonna move my stop to yesterday’s close. I think you can buy CAN today also, technically today it’s breaking out on high volume, yesterday was a little bit of a cheat entry, but it’s not crazy to buy today, it’s right at orhs rn just putting it out there.
• NIO bought some, second biggest position with TSLA, the large mcap stocks and EV, that’s the theme for now, and this was literally one of the very few stocks that had a good setup.
• TAN covered the short yesterday late day, closed very strong, bounced off the 10day, it’s still frontside, still above all these MAs on the Daily and 60min, no reason to short something like this. It’s diff from something like TNA that’s still below the 10day for eg and still kinda building lhs on the 60min.
• TTD still weak, building some hls above the 50day but it’s below all the emas on the 60min so we’ll see, could very easily have another leg lower, and if it bounces well I have a trailing stop.
• BNGO I hope this thing goes to $4/5, omg the volume on this thing. Last time Oct/Nov2019 it went similar to this time from 5c to almost $5 in one session, this time the float is probably much higher, this thing had a low float back then, now it has almost 200M shares, so it’s a slow mover relative but if it can get to $4/5 gonna be a really good short candidate. I’m not gonna touch it today. I guess BNGO was a miss today, I don’t like these low priced stocks but this thing had some really perfect entries; when it retested vwap, when it had its first crack bounced and failed at vwap, started building lhs, this was 5* in this high/mid 2.80s [10am], risk would have been 20c maybe to make a dollar, and you can do a lot of size, you could do 1Mshares with a market order and you won’t move the price more than 1/2p that’s how liquid it is.
• ARKG shorted orls. ARKG now losing the 20day, I think the next target could be the 50day, maybe even the 100day if we’re gonna get a real wash out. Omg going straight down.
• BIDU, congrats to those who took yesterday, I was a bit skeptical, I would have preferred the 20day to catch up a bit more but man what a breakout, really beautiful.
• ZM has been a laggard for several months now, it broke down the 20day, like look at these MAs, this is how momo stocks move, the 10/20/50day are so important, look at how the 20day and 50day were support on the way up, and now the 20day was resistance here and the 50day was resistance here and now these are the areas where it finds resistance on the way down. On the way up that’s where they find support, on the way down that’s where they find resistance. No indicator works all the time, but these MAs on the right type of stock, they work so well, it’s almost like cheating, as close to cheating as you can get, really is.
• ANTE, omg this thing is going, now the volume is coming in, this thing had like no volume when I started buying it. I found it on TWTR premarket, I saw it was gapping, I saw someone tweeting about it, it’s something to do with blockchain that’s why I bought it, these things can go, low float, these things can really move. Oh it’s AMCN that ticker okay so this is the change name, that’s it low float and blockchain, if you hadn’t noticed blockchain related stocks are the hottest stocks rn, and if you have a very hot sector, even the sh*ttiest stocks are gonna make bigger moves than the best stocks in a now very hot sector. That’s how it works, you gotta be in the hot sectors, still obviously you can’t just buy anything. Same with CAN, it’s a Chinese BTC miner, this is why I bought it, not bc I love the setup or anything, and it’s very thin not a big position, but bc I knew these types of stocks when a sector gets really hot, they types can double and triple very fast, I’ve been doing this for a while I know. IGC this was a weed name, anyway same thing, when a sector gets really hot these random sh*tty stocks can make enormous moves, IGC went from like 45c to $50 and this was a weed name back in 2018, but you know traders just want to find anything that’s gonna be the next whatever, like MARA when I bought it in the 2s and RIOT in the 4s, same principal, a sector gets hot these small ones can really go. This ANTE can go to $10, and if it doesn’t work out you take a small loss, and if it works out you’re gonna have a big return.
• BTBT I was looking at it, it broke out here in the lows 7s [28/12/2020], I was looking at it but I passed on it, I thought it was too illiquid, and then huge volume came in, absolutely enormous volume traded 60Mshares on the breakout day, if I had known I would have bought some. This is what I’m talking about these random names, once a sector gets hot, they’re gonna go on high volume, gonna make enormous moves.
• Guys especially if you’re a struggling trader, when the market is closed, that’s when the work starts. If you’re not putting in hours and hours of work outside of market hours, you know it’s hard, you need to really work hard to be a profitable trader. Like you can’t be a mediocre trader, you can be a mediocre lawyer, doctor, firefighter, but you cannot be a mediocre trader, bc a mediocre trader doesn’t make money. And to get good at this game you gotta put in a lot of work, a lot of work, so I used to put in a lot of work outside of the market hours. Studying past setups, studying market leaders from many other markets, reading articles, reading books, trading finance you have to absorb it all. Studying other traders, successful traders what methods did they use, what principals did they have. Nowadays I don’t do it as much but I still do it, I can spend a whole weekend just reading and studying market/trading related stuff.
• VERI, looks good, very tight perfect looking setup, made a big move, had an orderly pullback to the 10day, bounced then it had a pullback to the 20day, just very orderly look how nicely it’s obeying these 10/20day, now it’s building hls getting tight, very good setup.
• FIZZ also a growth stock to study, had great earnings a few years back made a big big big move, 2015 went from like $20 to pretty much doubled, pulled back went sideways, doubled again then went sideways for a year, I think it had a couple of hit pieces and stuff, then this one I remember [9/3/2017] I remember this earnings report, I was looking at it and I didn’t buy it, had very good earnings, big beat, beat rev and eps and big eps/rev growth, decent volume on this classic ep. And yeah started a big move, this is surprisingly what earnings do sometimes, when a stock is coming off a long base like this FIZZ had been going sideways for like 6months then it had a surprisingly good earnings report, and this is what happens many times. I think if you study earnings surprises, there’s a big big edge there, you find a few of those per year, you size accordingly, you can just trade one method, if I only could trade one method it would be earnings reports, bc they’re so infrequent, you only get 4 earnings seasons per year, so you don’t have to sit there and trade all the time.
• PINS good ep example, it was coming off a lot of weakness, pretty much a year long base, then it had a good report [31/7/2020], no eps it’s losing money but it had rev beat and guided higher and enormous volume, this is key it needs to have volume, and look at the move, pretty much doubled. Also a notable one I missed was NVDA [10/5/2017], had been going sideways for 4/5months, this was already a big mover before, had been going up for several years. Actually look at this one again [13/5/2016] look at the volume, look at the growth [39/13], the growth numbers weren’t spectacular but it had a big eps/rev beat and big volume, that’s the key, then it had several EPs. You gotta find those, you gotta get a bunch every single year.
• SFIX was also an ep, I was put off by the rev growth only 10%, but look at the beat, 26c profit vs the estimates of -0.17c, and again big volume, that was the key really. It didn’t really go on the first day actually faded, but then it went. So yeah it’s one type of ep, but not my type of ep, I prefer when the earnings and rev growth both big.
• BILI was another one, this was a combination of breakout and ep [19/11/2020], this one we bought perfectly orhs $52, I bought 40kshares sold a bit too early, and the stock was up 82% yesterday, straight up, big edge. SNAP was an okay one, but yeah enormous volume, 10/20x the average volume.
• FSLY was the best one I traded this year, when I bought it on earnings here [7/5/2020] like $30 or so, this thing tripled went to $100 in like two months, best ep I’ve traded this year. They beat on eps and rev, they guided higher, and big volume. Some people think oh it’s gapping up 10/20/30% it’s too late to buy, no, many times when a stock gaps up 10/20/30% that’s the start of a move that could be 200/500%, and you gotta find those opps, earnings reason is hunting ground, gotta find them.
• Looks like the cruiselines are catching a bid, they had a shakeout now they look even better, when you get an undercut and reclaim that’s very bullish. And this RCL that was a laggard it’s now leading. Def get ready to trade the diff types of sectors, it was a long time ago I traded these, a lot of these names are setting up, o&g, gold stuff, that’s where I see the good looking setups, a lot of things setting up in those sectors, very interesting. Airlines starting to look good, tight very tight.

Misc:

• My blog is getting on avg 100 visitors per day, so I think I should put more info on there. I should write a book? Maybe I should, a setup book maybe.
• I tweeted CELH, if this stock goes to 100 I’m gonna only drink CELH from now on, and they liked it.

#earnings #ep