A Reverse Merger Catalyst Sends Stock Squeezing Shorts

What's up everyone? All right, in today's 
episode I'm going to break down my trades  
from the morning. I hit the ground running today. 
We had a stock that squeezed up over 350% on the  
news of a reverse merger. This is an interesting 
catalyst and it's actually very similar to what  
we had yesterday on Vee E. V ended up going up 
yesterday to a high of over $40 a share from  
$4 to $40 in one day. That's incredible. So today 
when we had another stock with similar catalyst,  
you can bet that buyers are ready to step up 
to the plate and short sellers were probably  
a little bit nervous. Now you might notice, wait a 
second, Russ, that almost looks like a red shirt.  
you would be mistaken because this of course is my 
green shirt. That's right. I found a loophole in  
the superstition cycle that I've been caught 
in like many of the greatest athletes of our  
generation. Yeah, I'm a bit superstitious. I throw 
salt over my shoulder if I spill it. I would never  
walk under a ladder. I would not break a mirror. 
And I would never under any circumstances wear  
a red shirt, which is why you can see I'm wearing 
my green shirt. Now, this is something that I came  
up with. I just took a white paintbrush, well, I 
took a paintbrush, dipped it in white paint, and  
I wrote green shirt across the front, and I said, 
"Brilliant. I have just solved all of my problems  
in life with a simple stroke of a paintbrush." 
Now, I want to unlock this level of freedom and  
confidence for you, which is why the merch store 
at Warrior Trading now has green shirts available  
in all colors. You can get a green shirt in this 
shade color here. You can get a green shirt in  
blue. You can get a green shirt in black, a green 
shirt in white. It doesn't really matter. If you  
want a green shirt, you can have a green shirt. 
You can wear a green shirt every day of the week.  
Now, I don't want you to think I'm making money 
selling t-shirts, cuz that's not really my thing.  
Which is why we've got a coupon code so you can 
buy the t-shirt at cost. I really just want to  
spread the good word that you no longer have to be 
burdened by the red shirt. We can be unburdened by  
what has been. All right? You see what I'm saying? 
So, link is in the description for your green  
shirt. Check it out. Now, since this empowered me 
today to have such a great day, we should probably  
start looking at the stocks that I traded. All 
right, the leading gainer right now in the market,  
NXTC. Let's run that little intro. NXTC currently 
up 272%. It has pulled back a little bit off the  
top. Now, this had a high today of $12.30, but 
let's look at VE from yesterday. So, this one,  
let me just click auto here on my charts to scale 
it. This is unbelievable. So, when this first  
popped up yesterday, initially I was like, "Yeah, 
we've seen this stock a bunch of times. You make  
boats. Nobody cares, right? I mean, come on. H 
how much h Let's just be real. How much money is a  
boat company going to make? What are they going to 
do? AI for autopilot? I mean, there's just only I  
just felt there was only so much they could really 
do. But in the past, now that's in the past. And  
this is a stock VE that has popped up many times 
in the past and it never really does that well.  
but rolls over. Again, it's a boat company. What 
do you expect? So, you don't want your boat to  
roll over, but nonetheless, it's it's not one 
that's been able to do particularly well. So,  
we get this uh move on on um yesterday on Monday, 
and the catalyst was that the company was selling  
off the seemingly profitable boat business and 
they were doing a merger with another company  
which was going to bring the other company into 
the public space. And so this is called reverse  
merger. So for instance, just as an example, 
let's say Warrior Trading wants to go public.  
And there's two ways to go public. Well, three 
ways. You can do an IPO, a traditional IPO where  
you work with an underwriter, a big bank like 
Goldman Sachs or, you know, whatever. And that  
bank basically comes to you and says, "Warrior, 
you know, we've looked at your balance sheet,  
looked at how much money you make, blah blah blah 
blah. This is how much we're going to give you for  
all of the stock that you want to sell." So we're 
going to give you, you know, a billion dollars,  
whatever. That'd be amazing, right? So they're 
going to give you here's the check. And then  
what Goldman Sachs does is they are the ones that 
actually go sell your shares to other investors  
and they sell them on the market and they make 
a profit by taking that risk. So they, you know,  
god forbid something terrible comes out in news 
between when they put their when they give you the  
money and and then actually the IPO, that could be 
a problem. So they take risk, they get compensated  
for their risk. They get compensated very well. 
The second way a company can go public is through  
a special special purpose acquisition company, 
a spa. These were very popular during 2021,  
2022. Trump Media went public through a spa. 
And a special purpose acquisition company is  
a shell company. And everyone that buys into 
the shell company as an investor buys in at  
$10 a share. So if the spa, the special purpose 
acquisition company, raises $und00 million, they  
can now use that money or they raise a billion, 
whatever, to go find a privately held company,  
buy it, and then merge it into the spa and do a 
name change. And then just like that, that company  
is now a publicly traded company. And doing a 
reverse merger is the third way, and it's very  
similar. So, a publicly traded company that maybe 
isn't particularly profitable can be approached or  
could approach a privately held company and say, 
you know, the privately held company usually says,  
"We want to go public and we want to do a merger 
with you." And then we they do basically a swap.  
And so the publicly traded company sometimes will 
sell off their their profitable business to a  
private entity and then the other private company 
becomes publicly traded and they do a simple  
change and a name change. So that's what happened 
on or that's what's happening um in the case of  
um V uh EE and in the case of NXTC that's 
the same headline announces a reverse merger  
with a privately held company in a $320 million 
deal. So suddenly the stock squeezes up you know  
again because of the big move we saw yesterday. 
Unfortunately as awesome as this move was the bulk  
of it was early in the morning before 7 a.m. which 
is when most retail traders come online. You see,  
you know, that's a burst of volume. But 7 a.m. 
was uh let's see, right about here. And so,  
we already had this big move, this big rally 
up. It pulls back, it comes back up, dips down,  
drops, then it rallies up here. And so, right 
at 7 a.m., we had this pop. And I considered  
that to be a false breakout with the high of 840. 
And I thought, look, if this gets back over 840,  
I'm interested. And so later as it curls back 
up only a few minutes later at 8 7:15 I jumped  
in there for the break of 840 it goes to 9 
almost immediately up to 950 as you can see  
up to 10 up to 1050 up to 11 up to 1150 
up to 12. An incredible move. Locked up  
$19,000 of profit. But then it flushes back down. 
You end up getting this topping tail. And I never  
like a topping tail like that. It shows that 
while the stock squeezed, it ended up, you know,  
dropping back down. Uh, so it sells off, sort of 
goes sideways, comes up, another rejection there,  
and I didn't end up taking any more trades on it. 
You know, that was just one really good trade.  
Traded in the small account, traded in the big 
account for $19,000 of profit. Then I broke the  
ice on JTI. This is a stock that popped up just 
for a moment. I jumped in and jumped out. I lost  
uh well, jumped in and jumped out. I lost $235 
on it. Then the last stock I trade was UBXG.  
UBXG popped up this morning, pulled back, 
and I got in as it was curling back up,  
but I added to the position thinking it was going 
to squeeze through the high. Then it dropped down.  
I stopped out for a $1,700 loss. Then I got back 
in, and then I stopped out a second time. Then I  
got back in and I stopped out a third time. This 
thing just did not want to break through 11. Now,  
finally, as you can see here, it halted up, halted 
up a second time, broke through 11, and is now  
dropping back down. some tricky price action, but 
nonetheless, I'm sitting in the green. $13,200.70.
I'd say that's a decent day. Yesterday 
was an $8,000 green day. So now 13,000  
today. That's 20,000 plus on the week. 
So that puts me up a little over 90,000  
on the month of July. 100,000 is 
the first goal. Then 200, 300,  
and 400. Last month I hit just under $600,000 
between the small account and the big account.  
So, I'm looking to continue that momentum and 
have a solid month of July. And, you know,  
with this move that we had yesterday on VE, the 
move on NXTC today, uh, you know, it it feels like  
the market is still pretty warm. So, although 
I wasn't able to absolutely crush it today,  
I'm green. I'm grateful for that. And I will live 
to trade another day. So, with that brief recap,  
I will be back at it first thing tomorrow morning. 
Make sure you check out your green shirt with the  
link pinned at the top of the comments. and I will 
see you streaming at 7:00 a.m. tomorrow morning.