Trading Tesla and Walmart Breaking News Headlines...

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Transcript

What's up, everyone? All right, in
today's episode, I'm going to break down
my trades from the morning. I took
trades on two different stocks, and both
of them had breaking news catalysts. The
first was a catalyst about deepening
their relationship and partnership with
Walmart. So, that was interesting. And
then the second one was about a company
that's selling a product they've been
building, a system they've been working
on, to Tesla. And so, those two
catalysts, both small-cap companies with
a headline about, you know, a big S&P
500 stock, those are headlines that can
be meaningful. But as we know, in the
current market we're in, it seems that
traders would rather gamble on a stock
that's Chinese, that has no news at all,
in hopes of it going up 1,000%. And I
mean, I like a 1,000% move as much as
the next trader, but it still is a bit
frustrating to see that traders are a
bit dismissive of what seem like good
catalysts in favor of trading something
with no news.
And nonetheless, this is the market that
we're in. So, this morning, you can see
I'm walking up
uh a little over $32,000
in profit, with the bulk of that coming
from EDGL. However, my first two trades
on EDGL actually put me in the red
before I rallied and flipped from red
back to green.
So, let's dive in first on EDGL. So,
this is the stock here, and you're
probably familiar with it. It's
certainly not the first time I've traded
it. Over the years, um it's had a number
of days where it's had fairly high
volume.
Uh we kind of go back here, and you can
see these higher volume days. And so,
you know, we're familiar with it being a
stock that periodically gives a nice pop
off the low, but then tends to sell off.
They have to do a reverse split to get
the stock back up above a dollar, and
you know, then it pops again on breaking
news, and then they often do a secondary
offering. It sells off some more, they
do another reverse split, and sort of so
on and so forth to get to the point
where we're at today. And so, the 200
moving average looks ridiculous on this
stock because it sold off so much and
you can see that a lot of these days it
pops up, it sells off, pops up and sells
off, pops up and sells off. So we're
seeing red volume bars. Now, it's
important to recognize that at some
point during this day the stock had to
go up in order for it to sell off this
much and be a big red candle. And so
most of those moves end up occurring
during the earlier pre-market or after
hours trading session. And so this move
began here early this morning and it
squeezed from about $3 a share to 950.
And I was beside myself. I was like,
"This is unbelievable." First of all, I
have low expectations of EDBL. I don't
think it's really going to work that
well. Yes, Walmart good, but EDBL has a
history of failing. And so when it first
popped up here, wasn't really looking at
it and then I tried to take my first
trade on it, which I'll show you.
My first attempt was at 699. I tried to
buy 20,000 shares at 699 right here for
the break over seven
and it ends up going all the way up here
to 950. So from $7 to 950 on 20,000
shares it would have been a $50,000
winner if I sold if I got into the very
well, if I got in right at seven and I
held to the very top, which I wouldn't
have, but it could have at least been a
$20,000 winner if not a bit more than
that. And I missed it and I didn't want
to chase it in this area because there
wasn't another pullback. So then finally
it does a pullback right here and I
said, "All right, I'm going to jump in
right there." I jump in right down here
and I lose three grand. Gosh darn it,
you got to be kidding me. Then it pulls
back and it comes back up and I jump in
again thinking we're going to set up
here and so I add a little over eight.
It goes to 826 and then flushes down
again and I lose on it a second time. So
now I'm getting a little annoyed. You
know, this is a stock that goes up 200,
300% and I managed to be red on it. So
it pulls back here
as it comes down a bit lower.
And then right here it comes back up to
VWAP right there. It's not able to break
it, dips down, comes back up again here,
and I add to anticipate the break
through the volume weight average price.
Now, at this point, if we look at the
1-minute chart, we'd pulled back a
little bit longer, right? We'd have this
more sustained pullback, and now I'm
looking for the curl. And I was
basically thinking, "Look, if this thing
breaks back over VWAP, then the next
target is a retest of the high of day."
We do have some topping tail candles,
but let's see what we can do. So, as it
starts to break the VWAP, it starts to
move, and I'm like, "Okay, here we go.
It's game time." And we end up getting
the squeeze all the way up to a high of
$9.94 a share. And I kind of thought
this was actually potentially going to
do something even bigger because short
sellers were now trapped under the
volume weight average price. So, back of
mind was this is going to break through
957, and we're going to crank here up to
11, 12, maybe higher.
That didn't end up happening. It ended
up having a topping tail and dipping
back down, and so I was in and then back
out as it comes back down.
So, locked up my profit there. Uh took a
few trades in this area, and then just
sort of called it and said, "All right,
I don't think this is working." So, it
ends up pulling back. We had this clear
sort of level up here around like 826,
but it just couldn't get through that
level. I don't know why. And then as we
got closer to the open, it dips down,
almost halts down, then halts up, then
opens and halts down twice, and ends up
going lower. So, uh anyway, so total
profit there, $30,000. Not bad, and
flipped from red on it to green. Then,
VTI
X ends up having news that comes out at
9:17.
Uh sells first enterprise system to
Tesla for Optimus humanoid robot
division. And so, I thought, "Okay, any
headline with, you know, a big company
like Tesla seems pretty good." And so, I
thought this is very interesting. So, I
went ahead and punched it. Um we ended
up on this one having a uh micro
pullback at about 350 right there. And
then it squeezes up to four and goes all
the way up to a high of 450. And I added
as it was squeezing higher. Uh Uh
unfortunately in my small account, well,
fortunately my small account I did well.
Uh unfortunately my big account I didn't
really do as well. Made only $1,200.
Uh and I'm shocked that it's now down
30% on the day on this catalyst, which
seems like a good headline. So, once
again, you know,
and and that's moving while that's
failing while BIYA starts squeezing up
on no news whatsoever. Cayman Islands
Holding company with operations in China
and this one's up 111%.
So, you know, I guess I shouldn't get
stubborn and
maybe I don't know. I mean, look, I had
a I did well on EDBL, but it's confusing
to have stocks
with news that aren't working well.
While stocks with no news are making
these moves. It throws me off a little
bit. But I'm I'm trying to adapt and so
in any case during the pre-market
session, we didn't really have any I
didn't really notice any no news Chinese
stocks
that I was particularly interested in. I
saw a couple no news stocks pop up, but
they didn't end up getting volume. So, I
just
kind of to keep it tight for right now.
But the good news is this is a great
start to the new week. So, last week was
the best week of the month and now
starting today with a $32,000 green day
plus the profit in the small account.
This is a solid green day. So, I'm
hoping that, you know, this is a sign
that this is going to be another really
solid week in front of us. So, I'll
watch the scanners you know, throughout
the day and later tonight I'll check to
see, you know, what were the biggest
percentage gainers. And then tomorrow
morning, bright and early 7:00 a.m. when
I sit down, I'm going to be watching
this top gainers scanner to see what is
obvious in the market. And
you know, we did have DFNS which was on
my watchlist from yesterday. This popped
up right at 7:00 a.m. pulled by or
sorry, 4:00 a.m. then popped up again at
7:00 a.m. right there. Could have taken
a trade on that, but was running a
little behind my um schedule today
helping the kids with some stuff in this
morning. So, sat down at like 9:00 uh
7:15 and so I'd missed that first pop.
Um
you know, so that was continuation and
then what was the other one I had on the
watch list? Oh oh,
um stack? Stacks, I think? No. No, it
was um
What was uh
No, I can't remember. Um But it it only
it didn't really end up um giving us any
good opportunity. I can't remember. It
was from It was from the other day. But
nonetheless,
um yeah, so as we sit right now,
um I don't see anything that I'm feeling
like I'm missing by sitting on the
sidelines. BIYA, I mean
I don't I don't know. It's an inverted
head and shoulders pattern here, but not
really feeling like I'm missing anything
by not trading it. So, sitting tight and
I'll be back at it first thing tomorrow
morning. All right, so with that, remind
you guys as always trading is risky and
my results aren't typical. So, manage
your risk and always practice trading in
a simulator before putting real money on
the line. All right, take it slow. I'll
see you guys back at it first thing
tomorrow morning.