What's up, everyone? All right, in
today's episode, I have a stock to show
you. This is crazy.
We had a stock that went from $1.35
to $18
a share in 10 seconds.
What are we doing here, guys? This is
insane. If you're shorting these, my
goodness. All right, this is your red
flag. This is your notice to be very,
very careful. This thing was insane. It
was just unbelievable. Now, I actually
thought today would be going to be a
no-trade day because when I first sat
down at 6:45, 7:00 a.m., there wasn't
much on the scanners. We had a couple
stocks that were up 40, 50%. Uh, wasn't
really that into them. We had one stock
that finally started to pull away a
little bit, but then just kept running
into resistance. It just couldn't open
up, and I just sort of said, "You know,
I just think it's not going to happen
today." You know, 7:00, nothing. 7:30,
nothing. 8:00, nothing. 8:15, nothing.
8:30, nothing. 8:40, boom. Another huge
move. So, let's go ahead, jump on the
screen share, and break it down. You'll
see I'm up $13,632.60,
which is not bad considering I thought
it would be a no-trade day, but I was up
37,000 and gave back about 25k off the
top. So, that's a little bit of a
bummer, but I'm not going to be too bent
out of shape over it. So, XHG was our
Chinese, um,
surprise today. I I just, this is
unbelievable. So, this stock, um, just,
you know, look. I mean, it's one of
these stocks got a 46 million share
float, very low expectations on it,
history of selling off reverse splits,
and then today it pops up. Now, this
one, um,
did actually have news. And I almost
thought that might be a bad thing
because stocks with no news have
certainly been more, um, more impressive
than stocks with news recently, but
nonetheless, it popped up here.
Uh, you could see that this move began,
let's see, where was this?
Um,
excuse me. Began right at 8:00 a.m.,
pops up, goes sideways around $1.20. And
it sort of squeezes up right here to
$1.30, $1.36, and this is where I was
like, you know, I think maybe I should
punch it. So, I put my order for 15,000
shares.
And I had the order ready, and I was
like, "Uh, I don't know." And then all
of a sudden right here, it goes $1.82,
$2.40, $2.60, $2.83, $3.60, $3.80, $4.
Scroll the chart, $5, $6, $7, $8, $11,
$14, $15.
This thing actually printed a high. This
is absolutely insane of $18 and 8 cents
a share.
Imagine my 15,000 share order. I'd have
been up like 300 grand. It's insane.
Um but it came right back down. It came
right back down. And so, in a way,
that's like an algo spike where all of a
sudden, probably what happened, I you'd
have to think is, I mean, someone
Man, I don't know. Someone Someone might
have had a really big short and just got
forced into liquidating, and then you
got this really rapid algo spike, almost
like a flash crash, but the opposite
where it goes straight up. You don't
always know exactly what triggers that,
but because we had a similar move on
Socket, SCKT, earlier in the week, now I
am kind of wondering like is this going
to be a thing where these stocks at this
sort of,
you know, I I don't know. It We know
that obviously there's traders that
short these.
Um
and
you know, it's just kind of crazy cuz if
you short a stock at 70 or 80 cents a
share, the most you could ever make is
if it goes to zero. Uh but then if it
goes to $18 in one candle, your your
risk is way, way more than your reward.
Uh so, anyway, so we had this pop on
SCKT, it drops back down. I bought the
dip here, and it rallied back up. I did
the same thing with XHG. I bought the
dip. Um I didn't get in as soon as as I
should have, uh Uh, I did get a dip
trade on this. Uh we got a rally back up
to about seven. Uh, by that point I was
up 37,000. It then dips down. I took a
trade right here looking for this curl
and then held and then stopped out
before that drop. Lost about 15 grand on
that. Then it comes back up and I got
back in. Um, let's see. I got back in a
little bit closer to the open.
Uh, it was right around here that I got
back in and I was looking for that
squeeze through seven. Uh, but it
stopped out and I lost on it a second
time. So then I just said, "Whatever." I
didn't take any trades on it after the
open. Um, and it's sold off a bit now.
It's up about 332% but still holding at
$4 a share, which, you know, I almost
wonder if like
I mean, because this is a Chinese stock
we just don't know. But I almost wonder
if, um,
you know, someone's in cahoots with some
of these companies and they're like,
"Listen, we're going to just send this
thing to a crazy price. It's not going
to hold that price, but we think it'll
hold higher than what it was was at."
So, you know, well, so here it's still
at $4, which is still a net positive for
the stock. It's got 58 million shares of
volume. Uh, but we don't have anything
yet that's over 100 million. Well, at
least I didn't think we did. No, we
don't. Um, so the volume today is a
little lighter than it was yesterday.
And we're still seeing some decent
moves. But, um,
you know, I will tell you that this
week, uh, the roller coaster has been
open in my P&L. I mean, I've been having
these big P&L swings,
um, you know, well, the last I guess
it's been a little bit more than uh,
just this week. It was last week as
well. I'm just going to pull up my
metrics so I can, um, import my trades
from yesterday just to add to, uh, what
I've got. So,
at this point I I'm kind of feeling like
tomorrow going into the end of the week,
like I'm scared. You know, I'm afraid,
uh,
I I don't want to not show up. I'm going
to show up. I always do. But I'm afraid
because I could either have like a grand
slam huge winner or I could just get
completely obliterated and it feels like
it won't be anything in between. Now,
it feels that way. That's not
uh that's not true though because I
could of course reduce my share size
tomorrow and then I won't have a big
loss and I also won't have a big winner.
If I only trade with 100 shares
tomorrow, I certainly won't have either
of those.
Um but trading with small size um
I usually don't really like that idea.
That feels sort of like a bit of a cop
out and um
you know, certainly I'll size down if
I'm feeling a little unsure, but and I
think that probably wouldn't be a bad
idea for Friday. So
um this is the last um you know,
whatever three days. So
uh let's see. We had uh not including
today, but today's another a similar day
at 13,000. So you know, 80 So red 73,
green 84 and then 19, 17 and now 13. So
the two red days here are a little
closer together than I'd like them to
be. This is only two, four, six green
days apart. So a small red day is fine,
but I just don't want to have a Friday
where I go deep into the red. So I do
need to be a little bit careful. Um on
the one hand, it feels like the market
is hot, but on the other hand it's still
been difficult to predict which one's
going to move and having a stock today
with a 46 million share float do
something like this was definitely
unexpected. Um and then the second
leading gainer is FGI and this one I
just really couldn't get in the groove
with. Um I just felt like um
I don't know. I just felt like it wasn't
working. Um
you know, it wasn't moving quickly
enough and so at a certain point I just
sort of said, you know, I I think I
wasn't able to break the ice on it the
spot where I kind of wish I could of
should of and that was early on. We had
this big squeeze and then we kind of ran
into this resistance level and so for my
um you know, for the small account, I
just said
I don't know. I guess it's not going to
work for my Roth IRA. I
just I don't know. I just wasn't feeling
it. So, it was a little heavy, strange
price action. US company,
um they had a headline this morning.
Roars back uh leading
uh the global leading I don't know sink
and kitchen something or other based out
of New Jersey, but
you know, flipping from uh losing money
quarter over quarter profitable, which
is good.
And yet it still felt heavy. It just
felt heavy.
A lot of sellers on it. So, in any case,
you know what? Um uh today is just one
of those days where we got a wildcard
stock. I didn't really trade as well as
I could have. The float threw me off.
Blah blah blah blah but I'm walking away
a little bit more than I had at the
beginning of the trading session. So,
I'd say that's a good day. And I'll try
to do the same thing tomorrow, but just
be mindful that we're coming to the end
of the week. It is August.
Uh what's that mean? Well, summers can
be slower. August can be slower.
Hasn't really been the case, but I I was
red last Friday. Again, I'd attribute
that more to my own issues um than the
market because there were some good
opportunities, but um
yeah, I don't know. So, in any in any
event um
I'm just going to try to cool off a
little bit. Uh but, you know, if I can
build a cushion, I built a cushion today
though and then I eroded it. So, maybe I
should just try to build a cushion and
then take it. All right. Well, that's to
be decided, but as always I'll be back
at it first thing tomorrow morning and
I'll remind you that trading is risky
and 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 practicing in a simulator before
putting real money on the line. All
right. With that, I'll see you tomorrow
at 7:00 a.m. Eastern Standard Time.