Can You Guess Today's Theme?

What's up everyone? In today's episode,
I'm going to break down my trades from
the morning and I'm going to see if you
can identify the theme that we had in
the market today. Now, when I first
logged in this morning on my phone at
about 6:30 in the morning, we had a
leading gainer and as you might guess,
it was a Chinese stock with no news.
However, it started trading around 4:30
in the morning and already made a pretty
big move just between 4:30 and 6:30. So,
as we sat down for the 7 a.m. kind of
unofficial open to pre-market trading
for most retail traders, a lot of retail
brokers don't allow trading before 7
a.m. So 7 a.m. is kind of when things
really begin in earnest. Unfortunately,
WXM had already made a pretty big move.
And look at this candle forming right
now. Do you see that drop?
Well, there you go. That has been the
theme of today. In fact, look at the
five-minute chart on this stock. It's
actually been quite difficult to trade.
If you're red on it, I'm not surprised
at all. This is a stock that initially
squeezed up here early in the trading
session from a low of $4 up to a high of
950. Then it comes all the way back down
to four. Then it goes back up to 8. Then
it drops back down to 7. Goes back up
here to 950. So we've got first topping
tail, second topping tail. Tries to push
harder and it can't. And so then I drew
a line connecting those two levels.
Right around 7 a.m. it drops down 6:45,
does a little inverted head and
shoulders and squeezes back up. But I
didn't feel comfortable taking that
trade right there. Why? I don't know. I
just felt like this ascending resistance
level was going to be an issue. And sure
enough, it was. It squeezed up to that
level and then dropped back down for
one, two, three, four, five, six
consecutive red five minute candles.
Then, you know, some traders were like,
I'm going to watch here for the first
candle to make a new high. And I said,
this is not a bull flag. A bull flag is
when you have, if you want to see a bull
flag, I'll turn on my whiteboard and
I'll show you. That's not a bull flag. A
bull flag is when you have a big move
up, a pullback. So, let's see. I'm going
to draw it out for you. All right. So,
we've got a big move up right here. This
is the part of the bull flag right
there. And then it pulls back. It dips
down, maybe one red candle, maybe two,
maybe three, and then it continues
higher. So, what are important
characteristics of a bull flag? It
should not retrace more than 50% of the
initial move up the nine moving average.
It should be above the VWAP, which I
have in my dotted orange line. It should
be above the 9 EMA which I usually have
in my gray line here pulling it back to
the 90 EMA and the volume weight and
sorry the uh 20 moving average is
usually a little bit below and should be
above that as well. So these are the
areas that I'm kind of watching during a
bull flag. So if that's a bull flag,
what you see right here is certainly not
a bull flag. Yes, this rallied all the
way up. It came all the way back down.
It's a bounce off the VWAP, which is
fine. first five minute candle to make a
new high. All right. Well, it ends up
rallying back up and I was I watched it
and I was like, I can't possibly because
of this candle. I can't trust it. But it
goes all the way back up and nearly
double tops back at about 1174.
Then it drops down again, pops up,
knifes down, goes back to the VWAP,
bounces again, and then right here curls
once more. And I watched it right
through this area. In fact, I pulled it
up on my one minute chart. I was kind of
really getting dialed in and I was
thinking, you know, all right, we just
broke over this level of 1025,
but there was never really a clean
pullback. Kind of went to 11, drops back
down, then goes, and I just said, no, I
can't. Let's see if it holds this level
because I thought maybe we would get a
triple top. Instead, it just burst right
through 1160, goes to 14, and then drops
back down to 10. Yikes. So you could see
how easy it could have been to go deep
into the red on a on a move like that.
It was not clean. That's not what I was
wanting to see. Not not at all. So then,
you know, it starts to rally back up
here going into the opening bell. I was
like, not a chance. I am not trading
that. I'm not touching it. And so I
didn't take a single trade on WXM. It's
our leading gainer. And I just never
felt comfortable breaking the ice on it.
So that all started at 7 a.m. All right.
So that was well 4:00 a.m. and so I was
watching coming into 7. So then what was
the next stock that I was considering?
Well, let's sorry, let's go back on the
scanners here. So after that 7 a.m.
move, we had that pop at 7 uh on WXM.
Then things were kind of dull for a
little bit. And by the way, we had a
couple other stocks that were hitting
the scanners. Let me just go back here
for a second. So we had a couple other
stocks that were hitting the scanners
between um you know 4 a.m. and 7 a.m. NC
hit the scanner. WYG hit the scanner.
You can see the charts. These popped up.
They didn't hold up super well. Then we
had ELPW.
This one hit the scanners. That one sold
off. So, it's kind of a lot of this pop
and drop stuff. Keep going back up to
9:30. I got to scroll back down. So, at
7, where is it? So, come on. So, at 7
a.m., um, what ends up happening on this
is, uh, we got a couple other stocks
that pop up and, uh, we had AIHS. So,
AIHS hits my scanners and this stock
surprisingly goes from $2 all the way up
to 250 up to three. But again, look at
that topping tail right there. Topping
tail. So, on the one minute chart, I saw
that initial squeeze up and I said, I
don't know, you know, the float's a
little higher. 14 million shares what I
was seeing. Has that pop, drops down,
then it rallies back up through three,
up to 380, up to four, and then flushes
back down. Drops lower. I missed it. No
trades. I just I wasn't sure about it. I
just I don't know. I just felt like it
it wasn't I just couldn't trust it with
those topping tails. It's really as
simple as that. So, so then we had that
one and then what else did we have? Um
there were a couple other stocks hit the
scanners a little bit a few minutes
later. We had PLA that hit the scanners
and I was like no PLA, you know, it's a
US company. I'm not sure if that's going
to work. But after all these stocks were
making big moves, finally FRTT hits the
scanners. And when I saw FRTT, it had
news right here ties into AI data
centers. So I'm like, okay, right, it's
a Canadian company. And you guys know
what I often say about Canadian, so I
don't have to repeat myself here, but
I'm not wearing, you know, anyways, I
won't get on a tangent. So here we have
409. We've got this double top on the
daily, but I also was thinking this is
potentially a blue sky setup over 409,
you know, all-time highs, which I like.
So, as it starts to squeeze up, I was
like, you know what? I've already missed
a couple. I'm not missing this one. And
so, as it squeezes here, I decide to
punch it right about there. And this was
similar to uh the trade on AIHS that I
skipped on. So, this ends up going up to
2, 250, up to three. And as it's going
higher, I'm adding, I'm adding, I'm
adding, I'm scaling into it. I'm like,
"Okay, here we go. Now we're really
moving. This is going to be awesome."
$4, blue sky, and then 678. And it hits
a high of 335, and then it knifes
back down to two, bounces back off 2 to
250, drops back below VWAP. And so I I
ended up averaging myself way too high
on it. And as it came back down, selling
as it dropped back down. Now, my
unrealized P&L was a pretty big green
day. But as I finished, I'm up, as you
can see here, $19,000. I tried to do a
couple of dip trades. I wasn't getting
filled. Some of the dip trades didn't
work very well. You know, this just
ended up being a another stock that
failed. And we can, and that is the
theme from today. Lots of topping tails.
Look at this rejection here. Rejection.
Now, this one rallied back up, but many
of the others did not. MGI, this one
rejection and straight down AC um a STC.
This one pops up immediately rejecting.
So, today it was really tricky. And we
had sort of this combination of we had
some US companies, we had some Canadian,
you know, the the one that was Chinese,
WXM,
it's not been super clean. It's been
lots of topping tails. So, you know, I'm
not really sure why today ended up being
as difficult as it was. In hindsight, I
wish that I hadn't been so aggressive on
FRTT. You know, I I again, I think this
speaks to the a little bit of FOMO in
the market, you know, and and in me as
well as a trader. We've been having big
moves. I kind of miss a couple and then
I'm like, "Oh man, I don't want to miss
the next one." So, I get aggressive on
it, but then that one doesn't work. And
then I'm like get a little timid. I
don't know about the, you know, should I
jump in WXM right here? You know, I just
had that kind of close call, but then
this does work except only sort of
because then it rejects back down. You
know, yesterday we had um socket SC uh
KT which gave this really incredible
move and I was a little bit worried that
this would create some FOMO in the
market for these lowerric stocks. Uh but
the reality is it's very uncommon to
have a stock go from 50 cents to $4 a
share. And look at that topping tail. It
did the same kind of thing. It knifed
back down. I bought the dip and rallied
back up, but trying to anticipate which
one's going to be the next one to do
this. I mean, these happen pretty
infrequently.
The WXM kind of moves of, you know, 100
200% in this price range are more
common, but this one just wasn't as
clean. One challenge that we have is
that we don't know, you know, some of
these companies like FRTT. I mean, the
amount of sellers that lined up on that.
I I don't think it was short sellers. I
think it was probably the company or
some insiders that were selling because,
you know, you just don't have that
amount of selling that quickly
in a typical uh in a typical scenario. I
mean, even from short selling, that was
just a lot of high volume selling and it
just brought it right back down. So, you
know, sometimes in a hot market, uh, we
can have like one hot day, you know,
another hot day and then it's like
totally dead and a lot of traders get
faked out and then it goes right back to
being hot. In a colder market, sort of
the inverse where it's cold, cold, cold,
cold, and then you have one day that's
really hot and then it's back to being
cold. So that can make it challenging in
terms of position sizing. You know,
yesterday was a ended up being a really
good day. So I sized up, you know, even
bigger today and that didn't pay off,
right? So I mean big picture, you know,
I'm making progress, but it didn't pay
off in the sense that I thought that
trade was going to really explode and I
didn't get reward from adding as high as
I did. as it kept pushing higher and
higher. I ended up being, you know, in
way too high when it then flipped and
dropped back down. And I don't like it
when that happens. So, you know, that
now has me a little bit on alert. Uh the
the look the last I mean really the last
couple weeks have been kind of like this
where um you know back on the whiteboard
it's been like you know huge momentum
and then sort of slower and huge
momentum and slower where it's like
these days we're having 1,000 2,000%
moves and then here it's like you know
lots of well I don't know the ratio the
percentage but lots of like round trips
where we pop and drop and drop and then
we're right back at it the next day and
then it's back to round trips and then
we're right back at it. And so if your
P&L looked like this where you're making
big money one day and then the next day
you're giving back profit because you're
trading too much size and things aren't
working and then you're back at it the
next day. I I I get it. I mean that's
it's very easy for that to happen and I
myself have, you know, gotten on the
wrong side of a few of these and taken a
few losses that were bigger than I would
have liked to have uh taken. So right
now WXM is halting back down. So,
halting down right there.
I don't know, guys. It's kind of a
little bit of a tricky day. So, the fact
is um after the open, you've got to now
contend with halt. So, I feel like uh
it's not going to get easier. Now, on
Friday, we had YJ, which ended up um you
know, having this sort of big move
during regular hours, but it was
backtoback halts and relatively light
volume as it built up. And so by the
time it really had high volume, well, it
was so extended you couldn't really get
a good position up there and then
traders, you know, shorted it right back
down. So ended up being another more or
less round trip. So I think that um you
know, whatever today is not we didn't
have a lot of good opportunities today,
which is discouraging, but um you know,
sometimes it's like that. And it doesn't
mean the week is ruined. It just means
that, you know, we've got to be a little
bit more cautious going into tomorrow to
see what is really showing conviction uh
if there's better sentiment in the
market or if traders are continuing to
be a bit um you know, gunshy about
jumping on some of these in which case
shorts are going to be more confident
and we will see more rejections. So,
that's where we're at right now. It's
just, you know, taking it day by day and
I'll be back at it streaming first thing
tomorrow morning, 7 a.m. But I'll remind
you as always that trading is 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 please manage your risk and
always practice in a simulator before
putting real money on the line. With
that, I'll see you guys tomorrow morning
at 7 a.m. Eastern Standard Time.