We Just Had a 400% Short Squeeze

What's up everyone? All right, so in today's episode I'm going to break down my trades from the morning. I'm sitting in the green, which is good because yesterday was a red day. Now, if you tuned into yesterday's recap, you know that I finished the day down $17,000. Typically in a cold market, that would be a huge red day, but because I've been making on average over $53,000 per day this month, that red day was more tolerable. Not that I enjoy having it, but it was more tolerable. The question that I was left with at the end of the day was was yesterday the end of the hot streak, in which case I've got to take my foot off the gas, size way down, and just kind of go back into hunkering down and waiting for good opportunities, or was yesterday just a little blip on the radar and now we're back to continuing the hot streak? And the way I figured I would know was when I looked at the scanners this morning. If the scanners this morning had been totally dead, then I figured then it was a pretty good safe chance to expect that the hot streak was over. However, this morning when I first looked at the scanner, we already had a stock that made a 400% short squeeze. So, that told me the hot streak is continuing, at least in terms of big momentum in the market, and the issue yesterday was just that I kind of mismanaged my risk on a few trades and ran out of time since I have a limited window when I'm focusing on trading. I think part of the issue yesterday, and also on Monday, is a bit of dispersed attention from SpaceX, which was continuing to move higher on Monday and into Tuesday. But yesterday it rolled over a little bit, and today it's dipped down a little bit more. I did take most of my profit off the table from that I've gotten from the IPO day yesterday as it broke back below 204, and so I'm still now just holding a small piece of the initial position, about 10% of what I initially had. So, that's fine. I'm okay with that. I'll let the last the rest ride for now. But, with Space X rolling over a little bit, that may also make room for attention to shift back to some of these lower price stocks, which have the potential to offer greater return in a short period of time. You know, having a stock up 400% in one day, the only way you would get that with Space X is if you're trading options, which adds a whole additional layer of complexity and is of course carrying the risk that the option contract expires completely worthless at zero value, which is always a possibility. So, today, however, was not totally smooth sailing. As you'll see when I show you my P&L, I had some big gains. I also had a couple bigger losses. I'm finishing in the green. I'm grateful for that, and I was able to recover all of yesterday's loss. So, this is where I sit right now as of today. Or as of 11:45 a.m. 10:45 a.m. So, the biggest loss came from EHGO, which interestingly was the stock that was up the most pre-market. Now, EHGO is one of those stocks where I missed this whole first leg of the move higher because this occurred between the hours of about 5:00 in the morning and 6:30. By 7:00 a.m. it was already rolling over, and I got in it in this squeeze here looking for a retest of eight. And when it flushed down, I got stopped out. So, that was my only trade on it, and it was one of my last trades of the day. I got in right there for the first 1-minute candle to make a new high. Was looking for the retest of 650, $7, and it knifed all the way down here to $5, and I took the loss. 20,000 shares, $1 per share loss. Disappointing. Maybe could have stopped out sooner. Got a little stubborn on it, a little frustrated. But, it is what it is. So, that was EHGO. But, this is funny because this is also the stock that kind of gave me in a way the profit from today that I got on UTSI and CLWT because it created a lot of positive sentiment in the market and a bit of FOMO which I had as well. So my first trade was CLWT. CLWT is a cheaper stock. It's a Hong Kong company. They put out news at 7:00 a.m. this morning and it squeezes from about a dollar and 20 cents up to 550 before now coming back down to $2. So it's still up 75% but it's obviously come back down quite a lot. In fact, it was only going up for about 10 minutes and it spent the rest of the day coming back down. So in terms of momentum, yes, we got a really big quick move but it hasn't held up well. So here's the way I approached this one. It first hit my scanners and I was not interested. Why? It's too cheap. That was it. I just thought it was too cheap. Goes from a dollar up to a dollar 60, pulls back, squeezes to 225 and that candle's the highest volume candle of the day at the time and is red and it's a shooting star. We drop back down and I was like, yep, typical low-priced choppy stuff, not interested. Then it rips back up, breaks through 225, goes up to 250, 275 up to three and at that point I was like, well son of a gun, this thing is moving quickly. I look at the daily chart and I see that the all-time high on it ever is about $3.54. So now I'm thinking above 350, this is a blue sky setup. So that's where I started thinking this this is something I should be considering. So here's how I traded it. It squeezes up right here and as it starts pulling away, I add. So I'm adding at about I think it was 350. We get the squeeze up to four, adding on the micro pullback, we get the push all the way up to five, it dips down, then we get this second rally here up to a high of 520. So only picked up well, let's see, $7,700 of profit in my Roth IRA on that move right there, but decent nonetheless. Not a bad little squeeze. So, it tops out there, then it reverses and comes back down. So, in this case a little choppy double top with topping tail candles. It sells off. Right here it tries to pop back up and then you get another high volume rejection. So, rejected back down and then that was it. So, I didn't take any losses on it, but that was just the most I made and and then that was it. So, that was my first trade of the day. Next trade was UTSI. So, UTSI pops up on the scanner. It's a Japanese company with no news and as you can see it went from about $2 to $10 and it's back down to $2 right now. This one does have more chart history. It was not a blue sky setup. It has a move back here in like 2018 up to $26 a share. A recent reverse split, not recent, back in 2022. I don't really know why this popped up, but it did. It popped up and then it's a question of, you know, should I trade it? So, it initially pops up to four 50. It drops, goes to five, drops, and it breaks through five, goes up to 550, up to six, and up to 750. So, as I see it squeezing up, I'm I'm kind of hesitating on it, but I finally punched it with an entry at $6.50. I filled 180 shares. That was it. So, I'm in 180 shares at 650. See it popped to 750, dropped down. As it curled back up, I got in right there. And then I add as it broke over seven and there I got filled my 12,000 share position. Squeezes up to eight. I'm adding. It goes up to 850, goes up to nine. Taking profit. It dips down and on this one I ended up buying the dip and we get a squeeze back up to 850, dips down, and I get another little break here, this ABCD setup up to 950. So, even though in total that's not the biggest move we've ever seen, I was able to extract some pretty good profit from it. Then we break down, we're below VWAP, and then we right here we break back over VWAP at about let's say $8. And we curl, and right through here we retest the high, double top at eight at 976, and that created on the 1-minute chart this kind of double top rejection, which I don't like, the two topping tails. As it squeezed up right here, I did add for the break through the highs, but that didn't end up working out super well, which is sort of disappointing, but not surprising. Nonetheless, was able to pull a profit of $52,000 out of that stock. So, now I'm up between these two 59,000, just under 60 grand on the day. Why sorry, WYHG hits the scanner, I jump on it quickly with small size, just testing the water, and it pops up, reverses, I'm back out, only $300 of profit on that. Then we have ICCM that pops up. At this point I'm up about 60,000 on the day. ICCM pops up, and I initially hesitate on it a little bit. We'd had the rejection on that other one, W YHG, and so when this popped up, you know, I just I wasn't totally sure it was going to work. And what ended up happening was I missed this micro pullback, I missed this micro pullback, and then I traded this micro pullback right here for a profit of $15,000. So, now I'm up 74,000 on the day. Pulls back, I get back in right here with 20,000 shares, it knifes down on me, and I lose 20 grand. Now I'm up 54,000 on the day. So, bummer, and I'm red on ICCM. Now, I ended up getting back in it for my last trade, which is the last stock I traded, and that was right through here as we curled all the way back up and broke through the highs. So, I had a couple trades on it in this area for the break of uh 750 and then the break of $8 and then the break of nine and I just kept trading it right there. Uh and then the last uh well, the second to last trade I took was EHGO. And on EHGO, I jumped in this after the opening bell thinking that we were going to get a squeeze into a halt and I was wrong. I got in on this pullback right here and stopped out as we flushed back down. So, today was one of those days where once I had a cushion, I started taking some risk and that could be how you turn a day from 50,000 to 75 to 100 to 150 to 250 to 350 to 500. It can start to move quickly as I increase my share size as the market is heating up. But, what can also happen is I start to make some really good profit and then I give back a chunk. And then I have to decide, do I keep trading and see if you know, that was just one bad trade, but I should you know, there's still good opportunities and make back a little of the loss. And I take a second loss and you know, so to a certain point you have to walk away. So, today I'm walking away with about 40% less than I had at my peak. I gave back more than I should have. That last trade on EHGO, I should have stopped when I was at 54,000 on the day. And I kind of knew it, but I was feeling a little bit of FOMO. Uh you know, we've had some big moves during regular hours that I've missed. In fact, we had big moves today pre-market on EHGO that I missed. I didn't fully capitalize on ICCM. I screwed that one up. You know, so I I was already feeling a little bit of frustration. Um SpaceX has been sort of a source of um FOMO and frustration because I only filled 157 or 147 shares of my 4,000 plus share order. Which, although I made, you know, whatever, 10 grand on that trade, um or maybe a little bit more, I should have made, you know, I mean, gosh, I I could have been up three, four hundred thousand dollars on that trade if I'd gotten my full position. Um so, I think I even though I didn't actually lose on it, there's a sense of loss uh from mismanaging trades or just bad luck, and and then trying to recoup this um sort of imaginary sense of loss, which is a little bizarre because my account is literally at all-time highs right now today. Uh and yet I'm still feeling this sense that I haven't done a very good job. I get I mean, I look, I I did get back some profit today. Um yesterday was a red day. Monday I didn't fully capitalize. So, it's like sort of dealing with some of those emotions, and markets that are highly volatile like this bring out bigger emotions in every trader. You know, no exceptions. So, whether you've been doing it for decades or you've been doing it for a week, it brings out big emotions. And so, I'm trying to kind of manage that and give myself a little bit of um you know, forgiveness for, you know, falling victim to FOMO and just remind myself gently to course correct and tighten it back up, trade the window you do the best, don't overstay your welcome, get in, get green, get out. So, you gave it back a little profit today. The trade on ICC made sense, that was fine. The last one on EH GO, that's where you pushed it a little too hard. All right. So, that's the that's the cost of that mistake. Let's self-correct tomorrow. Let's get back on track. Try to finish up the week with a couple more decent days. You know, we're seeing some good momentum. I'm grateful for that. Uh so, you know, I've just got to keep my head down, stay focused, and keep grinding, and uh do the best I can during this window when the market is hot. And then when the market cools off, the emotions kind of taper back down because there's not much moving. So, that's where I'm at right now. I'll give you guys the reminder as always that my results are not typical and trading is risky. So, I encourage you to manage your risk by practicing a simulator before you put real money on the line. If you haven't checked out my small account challenge, I didn't take any trades in that account today, but you can watch the recaps from days 1 through 5, which are uploaded. And the account as of right now is up just shy of 300% over the course of 5 days. So, uh check that out and I'll see you guys streaming tomorrow morning at 7:00 a.m. Eastern Standard Time.