250% Short Squeeze on Breaking News!

What's up, everyone? All right, in
today's episode, I'm going to break down
my trades from the morning. Today, we
had a stock that had breaking news at
7:30 and almost immediately squeezed up
100%. I mean, it was like instantaneous
market reaction. The news comes out, the
stock starts squeezing. And so, from
there, we started looking for micro
pullbacks. We got a few. It continued to
squeeze higher up to 150%, 175%, 200%,
250%.
Then it pulled back for a while. Went
through a period of being a little
choppy. And I gave back a little profit
trying to time the next breakout, but
just kept not happening. And I thought,
"Nah, this is getting a little
frustrating. I'm giving back a little
too much." So, I started eroding the
profit from that those first clean
trades. And then finally, we got another
breakout, but it was sort of challenging
to time it because we had had so many
false breakouts. So, I made some money
on the next one, but not as well as
maybe I could have if it had been
cleaner from the beginning. And that's
kind of how today was. I would make some
good profit, then give back a little,
make some profit, give back a little.
And so, as I sit right now, today is the
biggest green day of the entire month.
But that's not really saying that much
because if you've been tuning into the
recaps, you know that
uh July 1st and 2nd, last Wednesday and
Thursday were small green days. Both
days I was up like 8,000 bucks. So, up
16,000 on the month or whatever after
those two days. Market was closed on
Friday for the 4th of July holiday
weekend. Monday came back, was up
another $8,000 plus or minus. So, now up
24,000 on the month. Tuesday went red
three grand, then recovered to green
three grand, and that was this. So, now
up 28,000 on the month. Today, sat down
and on my very first trade on VRX, I
made 20 grand. Awesome. And I'm going to
show you that trade. Now, I'm also going
to show you my P&L on the day. I sit
right here at $24,359.40.
Gave back about four grand off the top.
I peaked at just under $30,000. So, it
was like 28,800.
So, a good day. Nothing exceptional,
nothing I'm going to, you know, write
home about or really remember um likely
at the end of um
you know, the month, but uh but a small
green day nonetheless. So,
basically, the way this all unfolded is
at 7:30, 7:30 a.m. boom, VRX has
breaking news and within 15 seconds it's
on the scanners as the stock is
squeezing up. So, if we scroll back on
the small cap high day momentum scanner,
and we went back all the way to, you
know, what is it? Um 7:30, we would see
right at 7:30, we're getting this alert
um right down here at $3.41.
So, at that time, the stock was only up
7%, 3:41 right down here. So, we get
that initial pop, the stock goes on the
scanners and I'm thinking, "Nah, I don't
know. You know, we've traded VRX before.
I'm not sure it's going to work."
Now, if I look at the daily chart on
this, you'll see, "Okay, yeah, high
volume red candles, rejections." We kind
of know it. It's a biotech company, they
lose money, they have to sell shares on
the open market to raise money. So,
they've done a lot of um you know, a lot
of offerings and typically, when it pops
up, a secondary offering's not far away.
So, we know that. Um and yet, it did pop
up, it pulled back, and it squeezed
higher right here. Now, I think this was
in part because at that moment, there
was nothing else that was obvious. This
is our scan for the day of the top
gainers. S.
That's a little too expensive. These
ones, none of these were really moving
up that much and at the most, they're up
45%.
So, it had the spotlight.
As it pulled back right here and popped
up, this right here was where I finally
broke the ice and got my first trade.
And we got a squeeze on it up to about
7:40. It pulls back, dips down, but I
was in and out, locked up some profit.
It pulls back, and then it comes up
right here. And by the way, this was my
first trade uh that I took in my small
account. Didn't take that trade there in
the big account. This was the the trade
that I took in the big account right
here and I punched it for the break
through 655.
It was like right here the high 665. Was
looking for the squeeze through seven
and a retest of the pre-market high
right here. We got it on the squeeze up
to eight and that was a $19,000 winner
in one trade. I'm in, I'm out, boom,
capturing the profit. Then it kind of
stair steps down a little bit. You see
it pull back, pops up, pulls back, pops
up, rejection, drops. I give back a
little profit there. Now I'm up 18,000
on the day. Comes up again, rejects
again. I don't take that trade. Comes up
again, try to take the break through
eight. It rejects again and that
confused me a little bit because as I
was looking at it up here, I really
thought that once we broke through this
pre-market high, we would pull away. But
we kept testing this level and not
really pulling away. And that dips down
and then it comes back up and here it
tries but doesn't really work that well.
I don't I I end up losing money on that.
So now I'm up 17,000 on the day. It
pulls back again. Now I'll switch off
the one minute or 10 second. We'll go to
the one minute chart.
And right here it's uh I got this high
of 920 where I kind of screwed it up,
sells off, comes back up, pulls back.
And the longer I'm watching this, I'm
just thinking it's only a matter of
time. And so finally it pops right here.
Didn't really see that coming. But then
um as it broke this level here, I ended
up getting back in for the break through
10, adding at 1050, adding at 11 and
looking for that parabolic move.
Did we get a parabolic move? Not really.
We got a $2 a share and then it stalled
out. I got out, got back in, got out,
got back in. It was a lot topping tails
and then sold off at the open into a
halt down, rallies into a halt up,
resumes, goes to a halt down. And as you
could see, this is the choppiness that
we're seeing after the opening bell. So,
you know, locking up a total of $24,000
is good. Gave back a little off the top
with the last trade getting in for the
break of 12 and stopping out at 11:30.
Now, what you could see here is the day
trade dash software with the charts,
with the scanners, with the newsfeed,
and with the simulator. So, we've got
level two market data. So, I press shift
one and boom, I've got 100 shares right
there at 10.98. So, I'm a big advocate
of you guys practicing these new
strategies you're learning in a
simulator before you put real money on
the line. So, just jumped out, lost a
little bit of money, getting back in,
losing, getting back in, losing. It's
very quick and easy to lose money,
especially on a stock with a bigger
spread. So, the right place to practice
is in the simulator and we've got this
set up for you guys to do it. So, it's a
safe environment and this is what I like
to see you guys doing. All right. Now,
reminders always, my results aren't
typical. So, please manage your risk,
take it slow, and I'll see you back at
it first thing tomorrow morning. I'll be
streaming at 7:00 a.m. and hoping for
another stock with breaking news to give
us a good move to finish up the week.
With that, I'll see you guys back at it
first thing tomorrow morning.