• Closed weak yesterday, and now we’re gapping up, indices are kinda flagging here above the 10/20/50day.
• WWR did get stopped out near the close yesterday, but reshorted 1/2hours ago premarket starter size. Added a little, halted down off open. So looks like WWR just got rejected off vwap, am looking to add more potentially but not now. Short 150kshares, looking to add more on a good setup, if we’re lucky this thing tests yesterday’s lows. Got stopped out of add, reclaimed vwap for now, this is what I was worried about it’s building hls on the 60min, if it takes out hods gonna cover all, still have 97.5kshares.
• When I lock into strength I sell like 3-5% at a time, depends on the stock, something like PLL very high adr, every time it goes up 10/15% I sell a piece, whereas something that’s not that high adr like TWTR, I may sell some every 4-5%, like 3-5% of my position, and then I trail the rest with the 10/20day.
• OSTK, it’s still building hls, it hasn’t gone, it had a nice first day [1/20/2020], since then it’s kinda chopping sideways, but it’s still building hls, I think next leg higher it’s gonna go to 90.
• Nothing else is gonna get you rich other than momo, nothing.
• GRWG, looks good, powerful, I would have preferred it a little tighter, but looks good, ah and it’s a weed stock.
• XPEL, I would have preferred a little bit more sideways but yeah it’s a strong stock. Man I should have invested in this thing a couple years ago, I know a few people on twitter that have been pounding the table on this thing for years and years, back in 2016/17, now it’s up 2000%, I guess I should have listened.
• FSLY, absolutely no setup here today, you gotta buy them when they breakout from tight areas, not when they’re already wide and loose. Look at LVGO, I bought it on the breakout here [25/9/2020], kinda grinded higher but look it’s building another setup here, look how tight it’s getting. Now look at something like FSLY, this was not tight at all, you need to buy it off tightness, that’s where your edge is.
• What do you do if you own extended stocks that look good for shorts? Well, unfortunately I’ve been in that situation a lot this year, when you own the best stocks, if you really think something is getting very extended you should just sell it, when it’s really getting extended above the 10day, when it’s like 50/100% above the 10day, I’ve been in that situation several times this year when I own something that’s really extended. JMIA, TSLA, it’s happened several times, you trail as much as you can, but when a stock gets really extended, there’s a point when you just have to sell, not to give back profits. But it’s always a balance between fear and greed.
• Hindsight is the best setup, it’s the most powerful setup. 100% winrate on hindsight.
• Sizing, depends on the stock, and depends how much exposure I already have in the portfolio, every position I take is individually calculated, depends on the setup strength, how good it looks, depends on a lot of things. There are high conviction setups, really high conviction setups, and then there setups where I’m like okay it looks good, and then there are setups that make me like drool, I just know they’re gonna make a big move, but those setups don’t come around that often.