• GME bounced perfectly off the 10day pm. GME about to hit lods while BB and AMC still very strong, interesting. They had an offering too, yeah smart, you gotta cash in on stupidity, when crazy people throw free money at you gotta take it.
• I sold ALB bc it’s too slow, I think there are faster opps out there, I want to be in the fastest moving names, I also got rid of some other things. I had like 17 positions or something yesterday, I just wanted to clean some, it’s easier to focus with fewer setups.
• CLOV I may have covered it too early in the 18s. We had the first leg down then the second, three perfect intraday bear flags on that one, really perfect. You had 1min orls that was the first entry, second entry was the retest and fail of vwap that’s where I started shorting and then I added on this flag break. Should have added here too never did, then we had another bear flag here, these stocks are daytrader’s heaven, these are the stocks that are gonna get you your first million. It goes on the long side too, CLOV the day before yesterday look at the move it made intraday, and look at this flag break here and this one, daytrader’s heaven.
• CLOV and now it’s gonna go straight down to $12, man every cover I had yesterday I could have doubled up my short position. It hurts, it hurts, and actually it did have another bear flag here late day yesterday I didn’t see that.
• CLOV could be a mean reversion long play tomos, ideally if it closes close to 13/12 or something then gaps down that would be a 5* mean reversion long setup, it’s down 50% from the highs now, if it can get down to like 60% by tomos would be insane.
• AEMD let’s see if it can go back to $3.
• BB still holding this big big flag pattern, just defended the lower trend line again, interesting, hard to know if it’s bull flagging or bear flagging.
• AMC ran into the declining 20ema on the 60min, now what?
• SIG look at this one not bad, the chart was beautiful been in a 3month flag, volume out of the gate actually wasn’t that big this was a bit tough one wasn’t like huge volume, on the 5min it’s easier to see, but the volume is actually coming in now on this recent candle, but yeah sometimes you just gotta trust the chart. These are the best types of EPs, the best EPs are the ones that break out to new highs or they break a multi month range, those are the great ones. Like BILI here [18/11/2020] perfect ep the chart everything was perfect. CELH [12/11/2020] same thing broke out of a multi month range. DDS very similar [14/5/2021] had an ep had been trending higher surfing the 50day for months didn’t have like a super long range but broke out on volume, and it wasn’t down here below the MAs, no it was near highs.
• Opening range highs are only relevant when a stock is breaking out, or an EP, once it actually gaps up or starts breaking this range that’s when it’s relevant. Focus on the things that matter, don’t waste your time on range bound stocks, especially not intraday ticks. CRWD was actually breaking this range, this thing had value looking at the orhs, maybe not the 1min bc the 1min orhs was still well below the range, but on the 5min it started becoming apparent that it was starting to break this range.
• I don’t understand options, almost no one does even though a lot of people think they do, I’ve never ever met a rich options trader, so I tend to lean on the fact that options traders are mostly losers, even more so than stock traders. Roaring kitty is a rich options gambler, he’s never gonna repeat that, he was the right place at the exact right time. It’s fine striking gold, but you need an exit strategy.
• BBW looks like a powerful flag, another retail name this is the year of the retail, this thing is known for big runs had a big run 2013/14 too, lot of these making enormous moves.
• Can I talk about offerings? Yes sometimes companies sell more shares to bring in more money, they usually do it when the stock has gone up a lot or when they’re desperate but usually smart management do it when the stock has run up, especially when it has gone up on nothing in a short amount of time. And it usually strengthens the company’s financial position even if it loses the shareholders a little. And sometimes the pricing is really good that usually shows there is demand, and sometimes the pricing is really bad, shows that there’s no demand. Sometimes you can see these micro cap stocks, GOED this is the one, they had an offering here was pumped up several hundred percent the day before, this was one of the most extreme, 20M mcap and they did a 205M public offering, gapped down 65% on that offering, probably one of the most extreme I’ve ever seen. Then you have something like PLBY I think they priced at $46 which is like the avg price of the past few weeks, same thing on this CELH $62.50 which is also the avg price of the past few weeks so these ones are more normal. And sometimes stocks don’t gap down on offerings, sometimes they can even gap up, so depends on the demand of the stock.
• Getting some pullbacks, when you get these small cap retail manias, you get them a few times per year, usually that’s close to like a short or intermediate top, usually when you get these big retail names running like AMC GME, then you get the secondary names running like BB, and then you have these tertiary ones like WISH CLOV, that’s usually always near the end. And also usually when there is not necessarily a pullback but at least some sideways action in the general markets almost every single time, it’s like clockwork, we’ve seen it so many times. And that’s always when the retail traders are the most optimistic.

#shorting #masterclass #ep #earnings