Shorts Keep Getting Squeezed!

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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 am on my
traveling trading station, the mobile
command center. One laptop, my USB
monitor, the microphone, the camera.
I've got everything I need here to trade
on the go, which is nice. High-speed
internet is probably the most important
variable, and I've got that as well.
Now, I locked up my profits this morning
on the early side. I didn't want to
overstay my welcome, but this is
definitely one of those hot markets
where I feel like I'm struggling between
not wanting to give back profit, but
also feel like maybe I'm leaving a
little too much money on the table. So,
today we ended up having yet again
another stock that made a huge move, and
it's like shorts just keep getting
squeezed day after day after day. It's
it's kind of incredible that we keep
seeing people shorting some of these
stocks. I understand on the one hand
that
many of these stocks that are squeezing
up have no true catalyst. They don't
have any fundamental reason for the
stock to be up 300, 400, or 500% and so,
logically, a week from now, maybe 2
weeks from now, certainly a month from
now, the stock will probably be back at
the price before this big move.
More likely than not. The company may
also very likely take advantage of the
fact that their stock price is up so
much and sell additional shares on the
open market. Now, there's a couple
different variables at play here. One is
the proposed rule change with Nasdaq
that and the SEC that any company with a
market cap of less than $5 million
for 30 consecutive days could face being
delisted. Now, that rule was approved
and then it was put on a a pause, stayed
pending a full review by regulators,
which will take months, if not longer.
Could even take a year. So, we sort of
thought that if that rule well, the rule
was approved for like 5 days before it
ended up being paused now for this
you know, full review. But we thought
maybe these companies some of them would
be motivated to try to push their stock
price up to make sure they were above a
5 million dollar market cap so they
wouldn't get delisted. You know, even if
it was just for a day because that would
reset the 30-day you know, timer.
But since that is no longer really
a factor
I I don't know how to explain why these
stocks are making such big moves.
You know, you could some of these
companies could be
sort of behind the moves and they're
really wanting to see their price go up.
Some companies engage PR
firms to put out good news about the
company and do this promotional campaign
to try to increase public awareness and
get people to buy up the stock. Some of
these companies may be subject to you
know, WhatsApp, Telegram scam groups who
are doing pump and dumps. They're
accumulating huge positions and then
putting out the notice. But even if that
were the case, I wouldn't really expect
the stock to hold its level cuz usually
when that is the case, the price goes up
and then it comes right back down. It
just doesn't usually hold. So, there's a
number of possible variables.
At the end of the day
we may never really know why some of
these stocks are going up as much as
they are and why some are continuing to
hold up
even when they have no news. But as a
momentum trader, this is volatility.
It's what we like and so of course I'm
happy to trade it. CLRO is actually the
stock that I made the most money on
today. It's currently up 324%
as you can see right here on the
scanners. But interestingly, why WYHG
was our biggest percentage move. So,
this stock this is this is actually
fascinating to me. It's a Chinese
company
Wing Yip Food Holdings Group consumer
staples, food, restaurants, stuff like
that. You know, this is not typically
what we would expect to be a strong
sector for a big move. And right at 4:00
in the morning, this is sort of this
really sets the stage in interesting
way.
So, at 4:00 in the morning, the stock
pops up as you could see here on the
1-minute chart from a low of what was
it?
Um,
$3.62
all the way up to a high of 12.82 and it
did it on a total of about 50,000 shares
of volume. So, 50,000 shares of volume,
that's it. And the stock goes up, you
know, 300% or whatever it was.
And then it comes right back down. Now,
that to me looks more like a possible
WhatsApp scam. I mean, I have no way of
knowing that cuz I haven't heard anyone
say that it was the case, but that looks
more like what we've seen in the past
where the stock gets jammed up and then
comes all the way back down. Now, that
can happen sometimes when a company
actually puts out news and initially the
market reacts positively and then people
kind of flip directions and they're
like, wait a second, the news isn't that
great. Sometimes there's a knee-jerk
reaction and then a quick reversal.
Um, you know, but nonetheless, there was
no catalyst. There was there was no
headline
um, or new you know, new breaking news
from the company that supported it going
up there at 4:00 in the morning. So, it
pops up, quickly reverses, round trip.
And so, on the one hand,
when I sat down at 7:00 in the morning,
which is um, zooming forward here to
let's see, about this area,
I sort of thought, you know,
uh, yes, it popped up, but isn't it
really evident that it just sold all the
way off? And yet somehow it was able to
rally from three back up to 10, which is
a big move. And then it comes back down
again, and then it pops up here at the
VWAP, 600,000 shares of volume in those
uh, 1.2 million 600,000 shares per
candle there. And then it sells off
again, then it comes back up again. And
so, I did trade this, but it wasn't
until after the opening bell that it
finally pulled away. And again, the
stock has no catalyst. So, why why did
it pull away here and it didn't pull
away over here or in this area? And I
think really that is because
you know, the stock had a chance to trap
short sellers. So, people probably
shorted even at 4:00 a.m. this first
move. Stocks popping up with no news.
I'm going to short it. Comes back up
here, maybe they add to the short
position for a fade back down. It breaks
VWAP, shorts are in control. It pops
above VWAP for a second, then it goes
below it.
Shorts are still in control. Then it
pops back up here, it does a rejection,
you know, sells off, feels like, yeah,
this thing's not going to work. And at
the time, right here, at like 8:40, CLRO
was uh squeezing higher. So, CLRO kind
of took the attention, as you could see
right here, um right at 7:00 a.m. we got
this big squeeze, and then this is the
stock that was mostly in focus. This was
the stock that I thought was going to
make our 6-700% move today. But ended up
being YH or WYHG.
So, that's interesting as well. So,
CLRO, let's talk about this one first,
since the one that I actually did the
best on. So, this began its move
yesterday after hours. Okay, so, CLRO,
this is a US company. Um now, let's just
double-check and just could confirm with
the address. Um
uh yes, see.
Yeah, so, this is a US company. Um
we have traded this one before. It's not
the first time that we've seen it come
up on the scans.
Um but it ended up popping up yesterday.
Let's see. So, the squeeze began, I
think it was right at the closing bell
that this thing began moving. Let me
just double-check that.
So,
boom boom boom boom.
Um
Uh so, it was a little bit a little bit
later. It's like 5:25.
Um, so this ends up popping up here.
And I'm just going to check over here.
So,
yeah, you had this
13D.
Um,
I didn't even really look very closely
at but um,
so oh, the warrant cancellation
agreement, right?
So, in any case, this starts popping up.
Um,
and it ends up being the leading gainer
uh going into um,
you know,
after hours. It goes from, you know, $3
all the way up to eight. It pulls back.
And then right at 4:00 in the morning it
pops up to nine and then sells off. And
so, I kind of thought, you know,
coming into the 7:00 a.m. sort of
unofficial beginning of pre-market, at
least for retail traders, I didn't
really think a lot about this. Um,
but then suddenly it rips up right here.
So, this is how I approached it. As it
started to squeeze up right there, I
pull up the chart. I look at the
10-second chart because it's the first
one up. And I pull up the level two. And
as soon as it had started to squeeze,
let's see what Uh, we got to go back
here.
So, right here, back this up or zoom in.
Um,
I'll give you I'll have you take a guess
at where you think I got in.
Micro pullback right here.
So, I bought um, as it popped back
through seven, that was my first trade
on this.
And I got um,
I unfortunately got a lot of partial
fills on this one. So, if I go back to
my first orders, um, I was getting
filled down here on CLRO at um, 789,
787, 790. A lot of partial fills,
partial fills.
Um, but I got in right about here. And
we got this squeeze all the way up to
$9.80.
In total, I had about 12,000 shares and
I scaled out on the way up and made
about $6,000. And now you can see my P&L
for the day, 37,000 in the green. So,
made about $6,000 on the first trade on
CLRO. I'll just sort this by the stock I
made the most on.
Um
and then it pulls back here.
We get a little bit of a dip down, so I
take my profit. I'm out uh selling it
like 850, a little bit at $9, uh the
rest at like uh 870s. And then it dips
down here and I'm kind of like, all
right, well, you know, can I really
trust this? What's What's this going to
do? It drops all the way back down to
eight and I'm like, wow, this thing is
really heavy. I don't know. And then it
rips back up right here and I end up
getting back on this little bull flag uh
for the break through 10 and we get a
squeeze all the way up to 1080. Awesome.
So, I'm in and out of that. Now I'm up
14,000 on the day. It pulls back again.
We have this push all the way up to 11.
Uh it dips down and right through here,
I'm taking each one of these breakouts.
So, I got this little breakout here,
this one right here, this one right
here, this one right here. They didn't
all work out super well, but just
continuing to kind of stack up a little
bit of profit, you know, making my way
further into the green. So, then we get
this test of a high of 1236 and um
unfortunately, what ended up happening
was it could not hold over 12. And that
trade up there was a little bit of a
close call for me cuz I sized up for the
break of 12 and then it hits the high of
like 1230 and flushes back down. So, I
was like, uh that's not great. It comes
up here, it goes to 13 and then it
rejects. Again, I'm sort of like, all
right, this feels like it's not really
working super well. Now switching over
to the 1-minute chart.
So, now we have a clear peak up here at
13, but the MACD was negative. So, this
one right here, because the MACD was
starting to go negative, I was a little
bit like, I don't think this is going to
work. Down here the MACD is negative,
MACD is negative, and then it starts to
curl back up right around here at 8:45.
It pulls back, but you could see this
area I kept trying to catch that trade,
and I was looking for a break through
12, was it 12:40 right here, and this
was my last trade on it where I got in
at about 12. Yet again, it goes up to
12:40 and knifes back down, and I got
out nearly avoiding
a loss.
And so, you know, through trading it I
got myself up $26,000, which is good.
And I that's, you know, was my high day
on it. I didn't end up giving back
profit from that point, but it was a
little bit
I felt like it was just not pulling
away, but I thought, you know what, at
the opening bell I bet this thing's
going to work.
But I didn't trade it past the 9:30
opening bell. One of the reasons is not
wanting to be really stuck in halts
because of the way the halts at least
this week, some of them open a lot
higher, some of them open lower, some of
them open flat and then flush, and then
you're instantly in a halt down. I felt
like I can't control my risk quite as
much trading
after the open because of halt levels
and how quickly these stocks can get
halted.
So anyways, I thought CLRO would be the
one.
Because at that time WYHG wallet was the
second leading gainer,
you know, had pulled back a little bit.
I had tried to take this trade right
through here, and I had I did break the
ice on it. We got this curl right
through here. We got this break of VWAP
and then this one. And so I traded as it
was breaking over VWAP, and I was able
to lock up 10 grand, but then as you see
right here you had this big rejection.
So I kind of wrote it off. I was like I
don't think that's going to work. And so
then at the open when it halted up, I
was like, man, and then it showed a high
resumption, second halt, higher
resumption, a third halt, then it sells
off, halts down, gaps lower, then does
three more halts going up, halts down,
then even after a halt down, it opens
high and pushes higher. Then it halts
down again right here, then it opens,
then it halts down again, then it opens,
then it halts up. I mean, this is very
hard to manage risk on, these
back-to-back halts. But nonetheless, the
stock ended up going from $3 a share to
26 bucks. Unbelievable. And then it
ended up rolling over into the close,
and who comes back into the picture?
CLRO.
CLRO ends up squeezing, flushing, and
then ripping here through 1050, over 12,
over 13, all the way up to 1750.
Now, like FCUV and AMIX, I don't really
think that this is going to be in play
for tomorrow. You know, FCUV gave us
this big move um
back here, held up into after hours, but
it was like, is it really going to
continue pre-market? AMIX, similar kind
of thing. Yes, it was strong, um
continued into after hours a bit, but we
didn't really think it was going to give
us 2 days in a row. So, I don't think
we're really going to get more action on
CLRO, but there's no doubt that we are
seeing some big momentum. So, right now,
NAMI squeezing up, another Chinese
company after the bell. Is this going to
be like CLRO for tomorrow, where
tomorrow morning at 4:00 a.m. it
continues higher?
It may, and so, you know, certainly be
watching it. It does have a lower float.
Um
you know, it's just hard to know. I
didn't I thought CLRO would be the one
to make the big move during pre-market
and or regular trading hours, and
although we got that initial squeeze,
that was kind of it.
For the majority of this week, the
momentum has been between 8:00 and 9:00
a.m. This morning, it was a little
earlier. Well, 8:00 and 9:00 a.m. for
pre-market, and then some of it's
continued after the opening bell, as
we've seen with these halts. Uh but this
morning, the move on CLRO was like right
at 7:00 a.m.
Um WHG or whatever it was WYHG that move
was
kind of [clears throat]
um I guess it was like 8:30 8:45 when we
got that break of VWAP, but
in any case um
you know, it's just take it day by day,
but I I do still feel confidently that
trading pre-market or even after hours
if you were so interested is a little
bit easier because you don't have to
deal with the halt levels. So, you can
potentially have a stock that goes up $4
$5 $6 a share and you could actually
trade in and out of that range without
getting caught up in a halt. Uh no
trades in the small account today.
Yesterday was a really great day,
but today I wasn't really feeling it on
CLRO cuz it was a little too expensive
and that first trade was so quick and
risky cuz it was a micro pullback kind
of right at, you know, 7:01. I just
didn't have time. WYHG
my trades on that were also a a little
riskier. I wasn't totally sure it was
going to work, so it was okay in the big
account, but no trades in the small
account for today. Um but I will be back
at it tomorrow morning at 7:00 a.m. And
if you missed yesterday's recap where I
went over um my trades uh on the first
30 days of the small account challenge,
I'll put a link to that at the end of
this episode here that you guys can
check out. But let me remind you as
always that trading is risky. My results
aren't typical and there's no guarantee
you'll find success whether you trade
with me or you learn on your own. So,
please manage your risk by always
practicing in a simulator before putting
real money on the line. I'll see you
guys streaming bright and early tomorrow
morning at 7:00 a.m. for members at
Warrior Trading.