This Stock Just Went Up Over 130%...

What's up, everyone? All right, in
today's episode, I'm going to walk you
through my trades from the morning. We
have a stock right now up over 100%, but
it's a penny stock, and this is very
common. When the market cools off a
little bit for small caps, often the
stocks that we see starting to rise up
are penny stocks because realistically,
if you're an aggressive short seller,
does it really make sense to short a
stock at 30 or 40 cents a share? The
most you can make is it goes to zero,
but if that stock ends up going to 80 90
cents a dollar or squeezing a dollar 50
or $2, your downside's a lot higher than
your upside. So, generally, when things
are colder, as they are right now,
traders end up kind of flocking to the
safe haven of penny stocks. But
interestingly, when the market is really
hot, traders kind of abandon penny
stocks and look for opportunities that
are a little bit juicier because in
fact, it's actually far more common to
see a $3 stock go from three to six than
to see a 50 cent stock go from 50 cents
to a dollar a share. Both are 100% move,
but when a stock is over a dollar, they
do tend to move faster in a hotter
market. But right now, the market is a
little bit cooler, so it's a good time
for us to kind of batten down the
hatches, reduce share size, and try to
take our foot off the gas. I did exactly
that today.
Now, for those of you guys who've been
tuning in every day for these recaps,
you'll also notice I'm back in my
office. So, I spent 2 weeks
on the road in my traveling trading
station, so a Sprinter 4x4, Starlink on
the roof, and it was a great experience.
This year was the best year in terms of
Starlink performance. I was really
impressed.
Well, 4 years ago, or 5 years ago, when
I first started using Starlink, it was
intermittent. Even in a totally clear,
you know, open sky parking lot or a
field or whatever, it was hit or miss.
When it worked, it was great, and then
sometimes it just didn't work, and I
think it was the satellite coverage and
stuff like that, but it's been getting
better and better, which that speaks to
the fact that the market and trading is
more accessible today than it has ever
been. Even in remote areas of, you know,
the the the country or even the world
that previously there was no chance of
getting high-speed internet that could
keep up with the flow of market data,
now with Starlink you can. So, that's
pretty cool. All right, now we're going
to jump on the screen share and break
down the trades from today. Before we
do, I'll give you the reminder that our
Labor Day sales are ending tonight. So,
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uh or sorry, in I'll post links in the
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the Labor Day holiday. Okay, so those
sales end tonight in uh less than 14
hours. Okay.
So, this morning, um leading gapper PD
SB, this is a stock that we have traded
in the past. Um however, the float at
this point um is higher. It's now a 51
million share float. And so, you
wouldn't typically think a 51 million
share float could go up over 100% and
yet this stock went up over 130% today.
And it is in a large part because
although the float is higher, you're not
going to have as many short sellers that
are interested in shorting a penny stock
due to the imbalance between the risk
and the reward. And so, we have this
stock that's been grinding higher most
of the morning. It's got a degree of
ascending support right down in this
area. I sort of like to draw these trend
lines and sort of breaking it right here
and coming back down towards the VWAP.
Interestingly, the MACD was positive at
the beginning of the move and has been
negative even as the price has been
moving higher. That's a divergence. It's
a bit unusual, but it can happen in the
context of a stock that is grinding
higher rather than moving quickly
higher.
Now, that's the leading gainer, but it's
a lower price stock, so I generally sort
of filter them out and don't pay much
attention to them. But, I have to
acknowledge that
it's got a lot of volume. So, this is
definitely a stock that other traders
are focusing on. We have another scan
here called the penny top gainers and if
you use the penny top gainers, you can
see some of these lower price stocks
that are up quite a bit. So, you've got
123 million shares of volume on PDSB.
Wow, that's a lot of volume. All right,
so then the leading gapper on stocks
above 50 cents a share is BNC. Now, this
one's got a 38 million share float. It's
a US company with no news.
Right now, we're getting an inverted
head and shoulders pattern right there,
the edge of it there. Are we going to
get a curl back up and a a retest of
like maybe the double top up around 650,
675?
You know, sure you might, but I'm not
setting my sights on this one as having
a lot of potential, to be honest. I just
feel like it's too thickly traded. It's
very cheap to borrow.
It doesn't really make sense to me. Um,
you know, why is it up as much as it is?
Why is it holding up as well as it is?
I couldn't really say, but it's
atypical, and so I'm going to leave that
one alone because I don't fully
understand it. The second leading gainer
is up only 34%, and that's WYHG.
This one's got a 6.96 million share
float, and you can see an early move
here squeezing up to 636, then dropping
hard, then rallying back up, then all
the way back down, and now kind of in
the middle. And so, we're sort of in
this larger wedge formation.
So, as it's getting a little bit more
momentum here, uh pushing up back
towards six, you know, it's it's a lower
float than the others, so that probably
is going to make traders a bit more
interested in it, and it made me more
interested in it as well. In fact, it's
the only stock I traded this morning.
So, on WYHG, it squeezed up uh this
morning right through this area. We got
this Oh, sorry, this is Oh, right here.
It was right back here.
And we got this nice squeeze up. So, we
pushed up to 540, we broke through the
volume weight average price at 560,
micro pullback, goes up to 577, micro
pullback, and I got in right here, and
we got this push up to $6, but notice
how it was a very brief topping tail. It
hit six just for a moment, and then it
was right back down at basically the
same price. So, I got in here, I ended
up getting out right here. I didn't go
red on the position, but I got in and
got out, and I made a profit of $120.71,
and that's it. So, today obviously not a
home run. It's barely even a base hit.
My cold market daily goal is $5,000 a
day. Hot market daily goal is $20,000 a
day. So, I'm far shy of my hot market
goal. I'm I'm shy of my cold market
goal. However, this is what I'll say.
When the market's cold, it's important
to be able to take base hits,
and if it doesn't work, get out very
quickly, and I did that. And this could
have ended up being a $1,500, you know,
$2,500 winner. In fact, with 13,000
shares, I was up for a moment, you know,
about $2,600 when it broke six, but it
was so quick and came right back down,
it didn't hold. And so, I got out and it
was just could have been a small pro-
loss, it ended up being a small profit.
And I would say today more or less is a
break-even day. When we look at my
metrics, this is a day that's like not
even going to really show on my um
sort of the the P&L in terms of the
equity curve because it's just such a
small green day, it it's not
particularly meaningful. Um but that's
okay. You know, some days are like that
and the important thing for me is that I
continue to show up every day because
what I don't know is what day we're
going to have a stock that ends up
surprising us and giving us a really
nice move. So, if I look at my P&L here
for the last, you know, 30 days or
whatever, um this day back there was
$975.
You know, so days that are this small
barely even register as a blip, they're
just very, very small green days. Um
but the thing is
when the market's cold, usually
obviously shorts are more aggressive and
longs are more conservative, but there's
a lot of long bias traders that are
sitting on the sidelines and actively
watching and waiting who have the
restraint and self-control to sit and be
patient. And so, when something starts
to
pull away, they're going to see it. And
then that's when they're stepping up to
the plate. And so, very quickly, things
can go from cold to, you know, swing and
you've got a stock up, you know, 100,
200%.
Shorts are getting squeezed and we're
off to the races. Now, I'm not saying
that's going to happen today, it might
not happen uh this week, but it will
happen eventually. And when it does,
that's when I want to make sure I'm
ready. So, for me, showing up every
single day means that, you know, I'm
present and I'm able to keep sort of
watching the market and being informed
on what's moving, what kind of price
action we're seeing, and when something
does start to work, I'm I'm here to
capitalize on that opportunity. That's
the name of the game. So, the most
important thing is that when the market
is cool, you have the presence of mind
to take your foot off the gas, so you're
not being super aggressive while it's
cold, and that's an area where I
historically struggle. I still get too
aggressive even if it as it's cooling
down, and I end up incurring unnecessary
losses, and that's exactly what happened
last week, as many of you guys saw.
And in my small account, I ended up, um,
you know, having a setback. My small
account's now at $91,000,
and I didn't take any trades in it today
because the market really doesn't feel
suitable for, um, for trading in it.
But, you know what? I started this small
account challenge with $2,000
in June. So, over the course of the
summer, I made, you know, nearly, you
know, $90,000,
$89,000, right? And cuz of the the
$2,000 starting balance. So, a great
summer, and now, you know, you just have
to accept that if the market's cooler,
you got to sit on the sidelines for a
little bit. That's very hard for people
to accept. You make $90,000 in 3 months,
you're making, you know, 1,500, a thou-
2,000, 2,000, whatever it is, $2,000 a
day roughly. What is it? 60 trading
days, so not quite 2,000 a day over the
course of 20 trading days a month and 3
months. But, you know, you kind of get
the idea. So, you know, you think, "Oh,
well, I want to keep averaging, you
know, 1,500 a day or whatever." And then
when the market cools off and you're
having no trade days, you start to feel
like, "What's going on?"
And that's a scary feeling, and then all
of a sudden the market heats back up,
and you're back to having these big
green days. So, I have found that while
I might average, you know, 15,000 or
20,000 dollars a day over the course of
the year, I will have a month where I'm
averaging more like 30,000 a day and
another month where I'm averaging 10,000
a day. And then they blend and and
average out by the end of the year. And
so right now, yeah, I'm in the the sort
of low period where I'm having a just
kind of get by on base hits and we
didn't even really get many of those
today, but it's also the first day back
after a holiday weekend. So, you know,
I'm going to give the market a chance to
warm up and when we have something that
actually looks really good and starts to
pull away, I'm happy to step up to the
plate. So, as always, you guys will see
me in the chat room every morning
starting at 7:00 a.m. running my live
broadcast. And if you haven't already
checked out our Labor Day sales, the
link will be pinned to the top of the
comments and in the description, so you
can come on over and check it out.
I'll remind you, as always, that trading
is risky. My results are not typical and
there is no guarantee you'll find
success whether you trade with me or you
learn on your own. So, please take it
slow and always practice in a simulator
before putting real money on the line.
With that, I'll see you guys back at it
bright and early tomorrow morning.