Day Trading Watch List for Monday!

What's up everyone? All right, well,
it's a rainy day here in New England and
a good time for me to sit down and
record my watch list for Monday morning
and a game plan for the week ahead. This
is actually going to be our first full
week for the month of September. The
first week of September started on a
Tuesday, so it was a 4-day week. We
still had the last day of August, but
that was a little funny. So, uh, kind of
it was a slow start to September, those
first four days because we were going
into a holiday weekend, which was Labor
Day weekend. So then last week was a
4-day week and volume was light. There
weren't a lot of good opportunities. So
that was tricky. This will now be
starting September 14th. Our first full
week for the month of September. All
right. So I need to play a little bit of
catchup. I had a red day on Friday. Max
loss red in both the small account and
the big account. I I really I don't have
anything to show for last week. It was
kind of discouraging. And I don't have
much to show for the first week of
September. kind of in the trenches here
on a little bit of a lull in the market
and I'll be excited when things start to
open back up. Sometimes it feels like
someone just turned off the switch like
we are not seeing good catalyst and then
because we don't have good catalyst
we're not seeing big moves. So, you
know, we sort of sit down each morning
and it's like leading gainers are up 30
40%. They're light volume. There's
nothing really there. They're cheaper
stocks and we're not seeing good
volatility. And then all of a sudden you
get a stock with a good catalyst that
goes up three 400%. And you see the way
they trade and the price action is so
clean. You get a rally up and then you
get a first pullback and a rally higher,
another pullback, another leg up. It's
clean price action. We are craving that
as momentum traders. And it's not just
long bias traders, short sellers as
well. When it's this slow, there's not
volatility. And if there's not
volatility, well, it's pretty hard to
make money. So, we're definitely in the
trenches right now. Um, you know, but as
always, I show up every day and uh
although I was disappointed to have a
red day on Friday on TN
um you know, showing up is important. My
challenge that, you know, I kind of have
always had as a trader is that I'm not
as good at taking my foot off the gas
when things start to slow down. I wish
I, you know, I always say I could have,
would have, should have, you know, size
down sooner, taking money out of my
account, this and that. Um, I think I
actually will drop down my account
balance because I just I don't think
that I need the buying power right now.
And so it's an opportunity cost to leave
all that money in my account when I
could invest it and then have it working
in the long-term direction and, you
know, beginning to earn interest and
then benefit from compound interest and
everything else. So, I only keep the
extra funds in my small account or in my
regular trading account when I feel like
I could legitimately use that buying
power because one day that I need the
buying power where I'm able to make a
hundred or $200,000 day trading more
than makes up for the opportunity cost
of not having that same money, you know,
in the market at 10% a year or something
like that, you know. But on the other
hand, if you go weeks without using
extra buying power, it does kind of make
sense to put it somewhere where you can
earn a little bit of a passive return on
it. So, I think I'm going to probably do
that um this week. Now, TN was the stock
I trade on Friday and uh I lost 44,000
on it in my Roth and I lost 3,000 on it
in my small account. And that was on um
this rejection candle right here. It
ended up coming back up having another
rejection right here. So we had
rejection one, rejection two, rejection
three. Then it sells off at the open.
Then it rips into a halt up, does a dip
and a rip into a second halt. Then it
opens and then halts down, flushes, then
rallies back up to here, unwinds, and
then boom, news comes out in the
afternoon of a secondary offering. We
shouldn't be surprised. We knew it was
coming. I don't even know why I bothered
trading this one on Friday. I don't know
why I thought it would do anything other
than this secondary offering. I I'm
annoyed with myself. Um, and I guess
this is a trade that I kind of took a
little bit out of boredom and a little
bit sort of out of a feeling of um I I
guess like disappointment in myself that
I hadn't had any good trades last week
and so we were sort of running out of
time. And as I kind of saw the window
closing, I was finally just like, you
know what, screw it. I'm taking a trade
on TN. And then I was like, well, I wish
I hadn't done that. So, anyways, that
was Friday. Um, we did have a couple
other stocks that moved on Friday. If we
go back uh to our high day momentum
scanner here, obviously we had TN and
then as uh the bell rang, we ended up
getting a little bit of a move on FTFT.
So, you know, FTFT I I sort of looked at
it and I said, I really just don't think
it's going to work that well. It's a
continuation setup. The problem with
these types of continuation setups is
that typically they have lower relative
volume and although you can get a little
bit of a push higher, it's usually not
that impressive. And so this is what
ended up happening. Uh we had this
double top up here, it rallies back up.
It can't even get all the way to that
double top and that was the high of day
and that was it. So I don't think I
missed much by not trading that one. Um
then we had um F feim. This one hit the
scanners was moving up a little bit. Um
you could see this one obviously is um
priced too high. So no trades on that of
course. Then we had PCLA. This one uh
slightly lighter volume rallied up right
here and then sells off and goes red on
the day. Just terrible. We had let's see
SXTC. This one went up a little bit sort
of rallying and then selling off and
then coming back up. Double top.
Couldn't break that level. We've seen a
lot of these double tops that don't
break. SWRD, one of these stocks that
halts up, opens higher, and there really
wasn't much opportunity to trade this to
the long side because it just went up so
quickly and then came back down and that
was it. Higher float on it as well at 89
million shares. Um, so then yeah, PCLA
was back on the scan a little bit later
in the day. U SXTC was back on the
scans. Let's see. These ones were the
I'm looking at the column here for the
percentage gain and most of these ones
were smaller percentage gains. So, not
as interesting. BDRX cheaper stock, but
this one did get a squeeze uh later in
the morning and into the afternoon,
early afternoon, but ended up selling
off a little bit as well and is on the
cheaper side anyways for me. TN as I'd
already mentioned. FGL, this is one of
those stocks that pops up, gives it all
back. It's done that several times. It's
a Malaysian listed security, not one
that I trust. Uh, so not interested in
that. You know, I suppose if it had a
very clear news catalyst, but even then,
it's hard to trust it. So, the bulk of
the day we had um, you know, just sort
of a few random stocks that were moving.
None of them were that interesting. Uh,
then we go into the closing bell. After
hours, you get a little pop of momentum
on a couple different names. SCNI and I
usually begin um my watch list for
Monday morning by looking at the after
hours top gainer scanner. So right here
our after hours top gainers. So SCNI was
the first one that started to pop up.
Very low float right here as you could
see. Israeli biotech stock. You know
these ones haven't been doing that well
as of late. So in any case popped up
about 25%
30% then softened a little bit closing
up 22%.
TJGC.
This one pops up, sells off, and those
types of moves are impossible to trust.
It's a Hong Kong stock with no news.
Just that big pop and the rejection. I'm
not interested in trying to trade that.
I I'm just leaving those alone. I'm
waiting for something that pops up and
actually holds for the next leg higher
and then holds for the third leg higher
or so on and so forth. So, that's what
I'm waiting for. And we certainly didn't
get it on TJGC. Now, I have noticed um
you know, we've had some stocks that
have popped up um quickly, but that's
not enough. It needs to be able to hold
up. Now, CRBP is also um a biotech stock
right here. 13.8 million share float.
Pops, drops, then comes right back up,
closes at 1044 at the highs.
You know, it's hard to get excited about
it. The percentage gain is 26%. It's not
that substantial.
And this is kind of the issue going into
Monday is that although there were a few
stocks that moved in the after hours
session, none of them really moved
enough to feel like, oh, this is a super
obvious setup for Monday morning. So,
we've got um CR, sorry, CRBP, SNI,
VSME. This one, it's a little cheaper. I
don't know. Not that interested in it.
It's just it's just not enough range for
me. Um maybe with a commission free
broker you could do better on something
like that. But um yeah, so unfortunately
we don't have anything from our after
hours scan that are giving us um
potential ideas for Monday morning. And
then a continuation scanner SWVL. This
is a stock that as we know, you know,
has made a big move over the last few
sessions. But notice on the daily chart
how we have a divergence,
increasing price, declining volume. I
don't usually like trading when you have
that divergence because the liquidity is
drying up. And although the price is
going higher, it's usually quite
difficult to get in and out and you get
caught in a bad in a bad spot when
suddenly someone who is holding from
this day back here starts to dump their
shares. No trades on that. No interest
in it. AEL. This one is 1.3 million
share float. It's a stock that on the
daily chart has had some high volume
days back here. Uh if I hide the 200
moving average and then click auto,
we'll be able to scale the chart a
little bit better. So, you know, it had
a time back here in May June where we
got this big move and then this has all
been on the backside and we haven't been
able to really put in a new rally in
earnest in spite of some higher volume
days. So, no interest in that one. Um,
VIOT
rallying up off the low a little bit,
floats a bit higher. No interest there.
TN already discussed it. DBGI, this one
sort of similar to TN in a way, this
sort of selloff on the daily and then a
bounce, but unfortunately it's um it's
kind of hard to trust it because um it
keeps popping up and reversing. And
that's what we've seen on the chart is
that yes, we get a pop um but then it
gives it all back, right? pop gives it
back. So, you know, why why would it
work on Monday? You know, again, if it
had a really good
catalyst, but I think that's a bit
unlikely. So, right now, the biggest
issue that we're having is that we're in
between themes. We don't have a hot
theme in the market that, you know, we
can look at and say, "Oh, man. The next
stock that comes out with XYZ headline,
I'm all in on." We have markets where
that's the case and usually that's a
market where I can do pretty well
because I know exactly what headline to
look for, to scan for. I've got the
tools to do it. So then I just have to
wait for that company to put out that
headline and boom, I jump in, get a
couple great trades. Do that a few times
a week and I'm doing really well. You
know, that's where I'm, you know,
potentially uh having, you know, my
$20,000 daily average, $100,000 week,
sometimes even higher. But right now, we
don't have that clear catalyst. So the
catalyst that we can depend on
but the the frequency of them is a bit
more sporadic is number one a stock with
a really good a biotech stock with a
really good catalyst. So clinical trials
that are really positive and not just
like one or two people but a real
clinical trial with a good pool of
people and the results are positive that
can be a big catalyst for a biotech
stock. A private placement for a biotech
stock can also be a pretty big catalyst
because it means the company will not be
likely to sell shares on the open market
since they've done it through privately
through an institutional investor. So,
and that means that institutional
investor vetted the company enough to
write them a big check. So, that's a big
vote of confidence. So, a big private
placement, big biotech catalyst, those
are two that can be really good. Then
you know we always have the possibility
of a no news move and they can surprise
traders because it's like gez this
doesn't make sense. So shorts keep
adding but it keeps going higher and
this is typically more common on foreign
listed securities that are tightly held
and so the float is controlled. A lot of
the shares outstanding even in the
public float are held by insiders. Now
you might think why would that be the
case? Well think about it like this for
a second. If you've got a company that,
let's just say they issued um 10 million
shares, well, and this is very similar
to SpaceX.
SpaceX has issued billions of shares,
but the public market is only about 6%
of all the shares that are outstanding.
So, let's say you have a company that's
issued 10 million shares and 95% of it
are held by insiders that are part of
the company. So, CEO, CFO, COO, etc. Uh,
and the remaining 5% of the shares,
500,000 are part of the public float.
Well, because those insiders already
have such a huge position in the
company, what they could do if they
wanted to control market price is they
could decide to lock up the float and to
start actually buying back shares that
are on the market. Now, you have to file
disclosures if you're going to do that.
But with these foreign listed
securities, those rules don't always
seem to be followed. So whether it's
this the insiders individually or it's
people they're affiliated with that they
instruct to buy up the float, by buying
up the float, they're now locking it up.
There are now very few shares available
to short. And so essentially, you have a
stock that although the float might say
X, actually trades like it's a much
lower float. And in essence, if they put
out a good news catalyst, they could
start buying the stock up to start
trying to push it higher. And if all of
a sudden it gets on the radar of all the
other traders out there and you have a
day where it does 150 million shares of
volume or 434 million shares of volume,
all they had to do was sort of light the
match to get the fire started. And then
once the fire started, the stock has a
life of its own. And that gives them the
liquidity if they choose to that they
could sell. Now they might not. Some of
these companies let their price go
higher and higher and higher as we've
seen with HKD, which was a foreign
listed security that went all the way up
to like $2,500 a share. It was insane.
It It was totally crazy. But it had a
very small float. It was pretty much
locked up. And so anyone who tried to
short it just got run over very quickly.
If you wanted to borrow more shares,
well, tough luck. There weren't shares
available. When you have a very limited
float and that float is held by people
who are sort of in the no with the
company, they can opt out their shares
of being used to lend out to other
investors and traders. So those shares
will never be available to borrow. Any
of us can do that. We can affirmatively
opt out our shares from being borrowed,
but most traders, you know, retail
traders don't know how to do that. And
so any position that we're holding, our
broker lends out those shares to other
people, which is bad because it
essentially allows other traders to use
our position to bet against our own
position. It's not in our benefit.
Unless you get the, you know, the
circumstance of a big short squeeze, but
because those don't happen, you know, on
quite a regular basis, it would be
better to affirmatively opt out of the
lending program of letting your shares
be lent out. So depending on what broker
you're in or you're using and if you do
hold long-term positions, that's
something you could look into is opting
out so your shares can't be borrowed.
This was a big topic during the GameStop
short squeeze because everyone said if
you hold shares of GameStop, call your
broker right now and tell them you do
not authorize them to lend out your
shares. Because if your shares are
currently being lent out and you say, "I
no longer allow it," then your shares
have to be returned to you. And what
would that force? It would force either
the broker to find different shares that
they could allow the short seller to
sort of swap so they don't have to cover
or if they can't find additional shares
because everyone's opted their shares
out the short has to cover that means
buying and that means the price is
squeezing higher. So, you know, so
again, not to get overly complicated,
but you could have a scenario, and we've
se certainly seen this before during a
cold market where suddenly you have a
foreign listed security with a really
low float that squeezes and it makes no
sense at all. Shorts get stubborn, but
the thing just keeps going higher. And
usually there's something going on
behind the scenes that could help
explain that, which we can speculate as
to what it is exactly in that particular
instance, but which we probably won't
know with certainty.
So we've got that scenario or we've got
the private placement catalyst or you
know the great biotech news catalyst. Um
and there could be other catalysts as
well in the tech space but right now I
would not be interested in stock uh on
Monday morning for instance just in the
energy sector. You know although we have
had crude oil um you know moving higher
in price United States oil fund uh dip
down a little bit here. Um I I don't
usually like trading energy stocks. So
energy catalysts, either fossil fuels or
renewable energies, not interested in
trying to trade those companies. Not
interested in real estate investment
trusts, REITs, they don't usually trade
very well. Not interested typically in
banks. They don't trade well. Not
interested in utility companies. Those
are essentially regulated monopolies.
They don't really perform that well in
stock price. So the type of stocks I
tend to trade more would be would be
biotech, pharmaceutical and um and
different types of tech stocks which
over the years have included AI, uh
cryptocurrency, blockchain and you know
that sort of thing. So those are sort of
the sectors that I'm either not
interested or more interested in. And so
when I first see something hit my
scanners and I click on it, you know, I
could pretty quickly tell, you know,
where's where's it located? Okay, China.
Is there any news? It's a no news stock.
Okay, so it's a no news Chinese stock.
What's the float? Says it's ridiculously
low. So, is this going to be one of
those ones that does something crazy? I
don't know, but that would be my sort of
possible thought. Here's one, you know,
US company. Okay, so what was the recent
headline D? So, you've got um hosting a
conference to discuss topline data from
um clinical trial and potential D for
obesity. So, okay. So, that's the
headline that was driving it higher. So
then you sort of get the flavor of
that's that type of stock and that's
what I'm doing a lot of is trying to
understand you know location sector is
there news and then what are the
dynamics of the stock what's the float
and do I need to go into the SEC filings
to better understand um you know their
current financial status so I can see oh
you know this is a company that's
carrying a lot of debt or this is a
company that um has a lot of cash on
their balance sheet they're actually in
a good position they don't need to raise
money so those are the decisions that
you know or those are the things I'm
checking as I'm working my way through
making a decision of whether or not I'll
take a trade on any particular stock.
So, tomorrow morning I'll be streaming
starting at 7 a.m. and my eyes will be
on this scan right here to see what is
leading the way and if we continue to
see 30 40% gainers, you know, and then
maybe one outlier that's a cheaper
stock, yeah, it's probably going to
continue to be slow. Uh, but this is the
way it is. The market is cyclical. We
have hot cycles and cold cycles. So, if
you're in the market trading every day
that during this cold cycle, it's a good
time to study and to learn. Study the
live archives from when it was hotter.
So, the next time it heats up, you'll be
able to better capitalize on those
opportunities. That's the best way you
can spend your time. So, I'll remind you
guys as always, there's a link for the
twoe trial pinned at the top of the
comments. And 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 and
always practice trading in a simulator
before putting real money on the line.
With that, I'll see you guys bright and
early tomorrow morning streaming at 7