What's up, everyone? All right, in
today's episode, we're going to talk
about how a stock seemingly went up
today over 1,500%.
That's an unbelievable move. However,
while it's true that it did put in this
big move, the bigger context, if you
zoom out, is that this is a stock that
was halted at about $4 a share. It then
was halted for several days. It resumed
at 10 cents a share and squeezed up to
$160. So, is that really a 1,500% return
or is it a 75% drop over the course of,
you know, a week? Well, let's jump into
the recap and start breaking it down. So
MGN is technically the leading gainer
today, but again, I think you have to
take this one a little bit with a grain
of salt because of the fact that it was
halted at about $4 a share and then
resumed at 10.
Sadly,
those types of halts are not completely
uncommon in the biotech space when you
have a biotech company that's working on
a very specific um you know type of
disease and then they have really poor
clinical trial results. But this is not
a biotech company. This is a foreign
listed security. It's a Malaysian stock.
It's got a tiny float, a tiny market
cap. And you know essentially this is
one of those companies that the stock
trades very thinly. It rarely has any
volume at all but you know periodically
we will see sort of a surge of attention
as traders jump onto it. So what we
ended up having here on this as you
could see this morning is this sudden
rally which you know I I would say
really was quite unexpected. So, we get
this move right here from about 10 cents
a share and it goes from 10 to 15 to 27
cents. And that's when I first saw it on
the scanners when it was at about 27
cents a share. Now, typically, you know,
I'm not really interested in trading
penny stocks, but the market was so slow
today. This is the whole scan starting
at 4 a.m. ACCL
pops up at 4 a.m., sells off. You can
see that chart right there. I'll adjust
this a little bit for you. So, we got
that pop on ACCL. Nothing really that
exciting. Then we have YMAT. YMAT pops
up 4 a.m. Chinese stock. No news. Sells
off. All right. There's nothing to trade
there. We have FGL. This is a stock
that's also Malaysian. Pops up at 4:00
a.m. sells off. So these pops are kind
of a trap. They squeeze up on very light
volume. Some traders jump on, but then
they come right back down. So there's
there's they're not sustaining that move
at all. SU pops up. This is a um
renewable energy solar company. Solar
stocks don't go up two 300% in one day.
They just they it's almost never
happens. Even though the price of oil is
uh elevated right now, which is a
catalyst for renewable energy. You can
see this is the USO, United States Oil
Fund, uh at its highest level since July
where we peaked all the way up here at
154. So, we're coming back up towards
those levels um from actually June. But
nonetheless, the solar stocks don't
usually do very well. So that one
failed, LABT, this one popped up. Nah,
not much there. Then we had Bif. BIAF.
This is the stock that made a big move
last week. However, you know, you had
the first day, which wasn't that clean.
Then day two, day three, all the way
into day four continuation. Then it ends
up selling off right here and bouncing
back up. It's just a little bounce off
the low with a headline that they've
regained compliance. Regaining
compliance to me is just not that
meaningful a catalyst. So, you know, I
mean, it's like it just isn't that big
of a deal. So, anyways, then we had TN
which popped up and this was really
interesting. TN dropped right here at
855 and it dropped right as MGN was
starting to pop up. Um, yeah, it was it
was almost Yeah, it was like almost
right at that moment. So M and actually
I'm sorry there was another penny stock
that popped up just before um that oh I
can't remember it now but
um let's see there was TN AGRZ AGRZ
started popping up at um 855 so that
took attention off TN and then we had
MGN hit the scanners and start squeezing
up and so this is one of those moves
that's kind of I mean it's kind of
unreal to have a stock go from 10 cents
a share all the way up flashing suddenly
to $1.23.
Then if I zoom in on this, it drops back
down here to a low of 43
and then it squeezes up to $159 right
here and then it drops back down to 30.
I would almost say this is an illusion
of opportunity. There's not really
opportunity here. This is so volatile
and so brief that you could have been
unrealized and not hit the sell button
and it's gone. RML is another example of
that. This is a stock today that
squeezed up. We'll look at this on the
10-second chart as well. And look at the
chart. So the 10-second chart shows
really clearly that there was no real
volume behind the move up. But if you
looked at it on a five minute chart, you
might feel a little FOMO. Holy smokes,
the stock went from 8 to 30, 40. But the
volume tells the story. It did it on
less than 50,000 shares of volume. There
was no real liquidity. It's an illusion
of opportunity, an illusion of hotness.
And this is something we have to be very
careful of when the market cools off. Of
course, we would love to be taking
trades. We'd love to be capitalizing on
a big move, but we don't want to fall
into a trap where we buy something with
low liquidity and we get stuck because
then all of a sudden you turn a slow
week into the biggest red week of the
year. It can happen so quickly. So, this
is how I approached today. I didn't
expect to see any big opportunities.
Didn't take any trades in the small
account. I didn't think the market would
probably be worth it. And so, I just sat
here waiting BIAF. I talked myself out
of it because it's really not that
strong of a daily chart. The relative
volume is low. It doesn't meet my five
pillars well enough. It only met three
out of the five. I didn't think that was
enough to take a trade. But we did have
TN and TN popped up and when it first
started moving, I thought, okay, we've
got early repayment of a convertible
note. Not bad. It's a pretty low float
stock. Uh, you know what? I'll take a
stab on it. And so I got in this one as
it was still squeezing higher right here
in the middle of this move up. I'm going
to show you that entry on a 10-second
chart. Now, the only thing that was
unfortunate about this trade, so let's
see. So, I got in uh let's see. It was
right here, right down here on that
pullback. And I'll show you my position
on it. I bought 5,000 shares at 424 and
I sold it at $436 for $620.
Why only 5,000 shares? Well, I neglected
to switch from my a traditional margin
account to my retirement account when I
first logged in this morning. I have a
margin account at Lightseed. It doesn't
have a lot of money in it and I
typically don't trade in it. So, 5,000
shares was the most I could afford. I
bought it and I was I wasn't able to add
um well actually maybe I could have
added more but in any case I bought it
and immediately I got a notification
because I have a limit to tell myself
not to trade in that account. Uh and so
I got this notification. I realized oops
I'm in the wrong account. So I didn't
add. I sold the position. Then I
switched over to my retirement account
to potentially take more trades and
there weren't any more setups. So
today's a day where I made nothing in my
retirement account. That's a bummer. I
made $600 in my taxable account, which
is fine. I mean, I'm trading, you know,
the small account challenge is also in a
taxable account. Uh, but I would just
prefer to, you know, consolidate the
majority of my trading in tax-free
accounts because it just makes more
sense for me at this point. Nonetheless,
um, that was my one trade on TN about 7
cents a share on, uh, what was it?
Sorry, 12 cents a share on, um, 5,000
shares. So that was the profit. Uh a
small little base hit. It pulls back
here. Goes to this period of
consolidation. It curls up again and
there were a lot of big sellers here.
Came back to a perfect double top. Could
I have taken a trade from about 4:30
back up to 450? I could have. And I just
wasn't confident. And I said, you know,
if you're not confident in this market,
you better just wait. And I waited. And
then right there at 6 at sorry 855,
this starts dropping as that other penny
stock start to pop up. So attention
shifted very quickly now and then we got
this big pop on MGN which now has
remarkably 78 million shares of volume
and you know granted it has bounced up
today. We've gotten a squeeze from 35
cents back up to 75 80 cents. So you
know if you'd bought 50,000 shares of
that down there on the lows I mean you
could have actually had a pretty decent
trade and I'm sure some did but I just
typically don't find myself doing well
in those lowerric stocks. So, in a cold
market, I don't really want to venture
outside my safe zone. It doesn't feel
like the right time to do that. So,
instead leading the way with patience,
staying focused, and although I don't
have much to show for this week, it is,
as of right now, a small green week.
That's fine. And if this whole week just
ends up being a bit of a miss, and we
don't get much opportunity on Thursday
or Friday, that's fine. Look, cold
markets are like this. And when it heats
up, it'll feel like someone turned on
the light switch. All of a sudden, boom,
we start seeing huge moves and it's like
a night and day difference. It's almost
like trading in two separate markets. It
is the same market, but the sentiment is
so vastly different. The price action is
also vastly different. And so, when it's
hot, I find it so much easier to get in,
get out, lock up profit. And when it's
cold like this, the hardest part is
having the discipline to sit on my hands
and be patient and wait for the next hot
streak. With that, I'll thank you guys
for tuning in today and remind you as
always that trading is risky and my
results aren't typical. So, please
manage your risk and always practice in
a simulator before putting real money on
the line. I'll be back at it first thing
tomorrow morning, streaming at 7:00