US Healthcare Stock Up 220% in 24hrs...

AI Summary

Transcript

What up, everyone? All right, this
morning we have a stock that is
currently up 220%
but it was not easy to trade. That's a
little frustrating. So, the stock ended
up making a big move after hours and
then most of pre-market it was range
bound. It wasn't breaking out. I mean,
it was popping up and there were just an
unbelievable amount of sellers that were
holding it down. In fact, there was a
couple times it popped up and then it
would seem like a market order went
through, even though there's not market
orders pre-market, you can still do a
marketable limit order and the stock
just flushed down. So, let's go ahead
and jump on to the screen share and
start breaking it down. The ticker in
question is N U W E and you could see
right now it's actually at high of day
and I'm putting myself on the bench. I'm
not taking any more trades on it. So,
you could see I've I've got some profit
on it, but this was not easy to trade at
all and I gave back profit off the top
because I added into the highs thinking
it was going to keep going and then it
knifed back down. So, this is a stock
number one
that is not on short sale restriction.
So, we can see right here that it is
hard to borrow. It's not easy to borrow
like Ford. Ford is easy to borrow. You
can short this no problem. But, N U W E
is hard to borrow. So, if I go into my
short request window here at Lightspeed,
I'll pull this up for you so you can see
what it looks like. Um you can put in a
request to short shares. So, they have
to locate the shares for you and then
it's going to come back with the prices
on the shares, how much it would cost to
borrow them. So, right now it's
searching the different vendors that are
available and these are the prices to
borrow. Holy smokes! 82 cents a share,
75 cents a share, 50 cents a share. So,
this is very expensive to borrow. Okay.
So, if it's expensive to borrow, we
would typically conclude that there
probably won't be a lot of short sellers
shorting it when it costs 80 that that
costs more than 10% to short it. It's $6
a share. So, if you're going to spend 60
cents per share to short it, it's
costing There's the drop. See that drop?
Do you see that candle? How in instant
800,000 shares went through and it
dropped $0.60 a share? That is exactly
what's been happening all day today on
this one. And it is really frustrating.
So, I don't think those are actually
short sellers selling the stock to go
short. I think that that's the company
selling shares to raise money. Now, I
could be wrong, but that's my suspicion
based on the price action that we're
seeing. Now,
if it wasn't short sale restriction,
that would completely eliminate the
possibility that it could be a short
hitting the bid. Because when a stock is
on short sale restriction, shorts can
only short on an uptick. So, putting out
limit orders on the ask. They can't hit
the bid and cause that flush. So, it
could be short sellers, but given the
cost to borrow, I'm just not sure if
that's really what's going on. So, let's
look at the chart in a little bit more
detail. Well, first of all, it's a US
company, as you can see right here, US
Healthcare Medical Equipment, blah blah
blah blah
Interestingly, they actually put out a
headline at 8:00 a.m. Um the stock
otherwise has just been, you know, one
of these stocks that caught a bid after
hours and squeezed up as you can see
here from $1.87 all the way up to 2.80.
This is not one of those stocks that
boom had breaking news and just suddenly
surges with half a million shares of
volume. This is a stock that just kind
of started creeping a little higher, a
little higher, and then suddenly, you
know, traders notice, "Hey, this thing's
up 50%." They jump in for the break of
2.80, it goes to three, 3.20, 3.40,
3.60, all the way up to 3.80, up to $4.
Dips down, comes back up, double top,
pulls back, closes here after hours,
pre-market pops up, and then pulls back.
Pops up and pulls back. So, all of
pre-market basically, this thing wasn't
working. And then out of nowhere,
s- you get this big candle. I didn't see
this coming. It just I was watching and
all of a sudden it shoots up. And so by
the time I saw it was at $5 and that's
where I took my first entry. So I got in
this at five and I punched it right away
15,000 shares starter position. I was
like I'm going in on this thing heavy. I
added 15,000 shares, then I added
another 15,000. It goes to 513 and 523
and I kept adding. We ended up getting a
squeeze here all the way up to a high of
565.
Took some profit off the table, then
added back. We get the pop up towards
six and then it flushes down on me.
Through this area, I took a few trades
and then I just gave up. I was like, you
know what? This thing is just it's not
working. The MACD eventually crossed
into the negative right here and this
was the last big rejection where I was
like, nope, that's it. Yeah, we had a
huge one here, another one there and I
just said, no, you know what? I'm done.
This is this is not happening for me.
So at the open seeing it break, this
trigger, this pivot of 534, the level I
was watching, is a little annoying cuz I
had that on watch, but I watched it. I
watched it at the open and even in spite
of it coming up to that level, I just
kept saying, it's not worth it. This is
the price we had that last big rejection
and it was up here that we had the first
one. It could happen again.
And you know, so anyways, I I just felt
like
this is one of those stocks that for
whatever reason, maybe it's insiders
selling, maybe it's the company selling,
maybe it's shorts. At the end of the
day, it doesn't really matter. It's
heavy. It's not easy. There's better
things to trade. Well, actually today
there weren't. So I guess that means
that's it, right? Now I did trade PN. PN
popped up on our scanners this morning
and
kind of like DFNS, is that the ticker?
I'll pull that one up in a second.
You know, squeezing from 12 up to 16,
pulling back up to 18, pulling back. I
took one trade here and lost five grand.
I took another trade up here and made
like 100
100 bucks. So, I'm down $4,900 on it. It
just
unfortunately, even though it's the
second leading gapper, it only has 3
million shares of volume right now. Had
less when I traded it. So, I felt like
it was obvious cuz it was the second
leading gapper, but it didn't get enough
volume and without volume, people
weren't paying attention to it. All eyes
were on NUWE and sometimes that's just
the case that all eyes are on a stock
that I might not really like, but
um you know, look. I mean, there's it is
what it is. So, you know, that's just
the way it goes. Now, DFNS, by the way,
this stock has made an unbelievable
move. If we look at the daily chart, it
went from $3 a share up to a high of
Well, the high was actually $100 a
share. That's 2,600%.
I'll probably grab a screenshot of this
one. I'm going to switch to
a a longer time frame so the
screenshot's a little easier to read.
Let's make it a 15-minute chart. Let's
see what that looks like.
So,
you know, there it is.
Um
I mean, that's that's unbelievable.
That's I mean, it's not unbelievable. We
see this often enough, but but it's
beautiful. It's definitely beautiful. Um
sometimes you can't believe a chart
could be so pretty. Um
that reminds me of the American Remember
that movie American Beauty? Just there's
so much
so much beauty in the world. Just can't
handle it. So much beauty in this chart.
I just can't handle it. That's That's
what That's going to be the the next
movie. It'll be the Wall Street version
of American Beauty. Um but maybe not
quite so creepy in certain parts.
Anyways, it doesn't matter. So,
this
Yeah, I mean, this this was a big move.
So, I'm just going to add this to my um
doc of um So, 2,600% move in 5 days.
Amazing.
Unbelievable. Just huge. So, peaked
today at $108 a share, but you know, I
even though I did take a trade on it
yesterday at 39, uh which was kind of
annoying cuz by the end of the day I saw
it went to $96 a share.
I didn't take any trades on it today. At
certain point you just have to accept
volume is declining, liquidity is
getting worse, and your only hope is
that shorts are forced to cover in a low
liquidity environment, and they push the
price up by buying, you know, 100,000
shares. But that hasn't happened really
beyond what we've seen so far.
So, at this point today is
you know, a little bit of a miss. It's
not
not a big not a big day, but at the same
time I'm at 1x my hot market daily goal.
Hot market daily goal is $20,000. I'm at
$20,000. Yesterday I was at 23,000 or
22,000. So, let's see. Then Monday and
Tuesday was up 32,000, lost 32,000
between Monday and Tuesday. So, those
two days cancel each other out. So, now
I'm sitting at about 44,000, 43,000 on
the week. Considering last week I was up
over 100 grand,
this feels like, you know, a little
slower, but it's still
a really nice way to kind of be wrapping
up the month of July. And then just like
that we're going to be going into
August. Now, August historically not
always the strongest month. It's summer.
A lot of people are traveling or
whatever. Although, you know, it's so
hot I don't know why sometimes you would
even bother traveling during the hottest
time of the year. But whatever, kids
don't have school and so families are
away. Sometimes it's families and you
know,
the you know, people that some of those
people that have families are also the
people in their 40s or 50s who are
extremely wealthy who trade with huge
amounts of money. So, when they're not
in the market, you know, and you
multiply that by all the people in that
same category, then the people left are,
you know, kind of those
scraping the bottom of the barrel,
smaller accounts, and just chipping away
at this and that. But when the whales
leave
the I don't know harbor so to speak,
we'll notice the waves smooth out a
little bit. And that's not always a good
thing for traders cuz we want the waves
of those big whales. We want the
volatility that they create. So, we'll
welcome them back. But,
but that's also a generalization that
August is slow because that's not always
the case. The market is a little
seasonal, but very cyclical. Then we go
through hot cycles and cold cycles. And
most likely if someone's an active
trader and they recognize the market's
hot, they're going to be they're going
to be trading even if they're traveling.
Internet's good enough at this point
that people don't go to the Hamptons and
then just only use a fax machine and a
pager. I mean, they have fiber in the
Hamptons.
So, anyways, that's it for me. Locking
up a green day here and hoping that we
can finish the week and finish the month
of July with another green day tomorrow.
But, I would also, I suppose, give you
the reminder
that if you've so far had a decent
month,
there's no reason screwing it up on the
last day of the month. Lock in the green
month. Green months are important for
self-confidence. So, you know, I'm a big
advocate of locking it up, you know,
getting in, getting green, getting out.
And I guess that's a good reminder of
you know, you guys checking out this
book. Listen to it if you're going to be
driving around or traveling this summer.
Get it on audiobook. Quit quit, the
power of knowing when to walk away by
Annie Duke. I recommend this book all
the time. I
reference it in my own book. And
it's a good read. Walk away sooner.
Really, it's going to help you. Just
walk away sooner and stop looking. Don't
torture yourself and watch what things
do after you get out. Just get out. Come
back tomorrow. All right. So, with that,
I hope you guys have a great rest of the
day, but reminder as always, trading is,
you know what I'm going to say, it's
risky. And my results are not typical
and there's no guarantee you'll find
success whether you trade with me or you
learn on your own. So, manage your risk
by practicing in a simulator before
putting real money on the line.