We Just Had a 2,117% Short Squeeze!

What's up everyone? Well, I wasn't 
planning on doing a second recap today,  
but I also wasn't expecting 
to see a stock go up 2,117%
this afternoon. So, I broke down for you in my 
episode last week, the three scenarios that I  
thought could end the cold streak. The first 
was a stock that genuinely had such good news,  
you'd be insane to short it. Now, I was hoping 
that would happen. a stock maybe a biotech company  
with really just amazing breaking news sends a 
stock up two three 400% it keeps going higher  
and just like that we've got some momentum. 
The second scenario was you have a stock with  
mediocre news and the dynamics of that particular 
stock is that the company doesn't need to sell  
shares on the open market and so you don't have 
that extra selling that sometimes comes when  
companies put out news but they recently 
filed a shelf registration and that news  
headlines an opportunity for them to sell into 
the market which suppresses the price and in a  
colder market ends up that the stock ends lower 
than before the news even came out which is not  
great. The third scenario was that we would have 
another one of these foreign listed securities,  
a Singapore, Malaysian Chinese stock that has no 
news whatsoever and shorts get caught. And that's  
what happened today. We had another no news 
Chinese stock and it went up literally 2,17%.
The ticker is Rto. So, if I go 
back on the scans right here,  
right after the closing bell was when we 
got the final surge. And let's see. We'll  
just mark it here on the chart. So, 
it hit a high of $8, which was $2,17%
return. What a move. Nearly 200 million 
shares of volume as it peaked at $8. I mean,  
by the end of the uh trading session here, 
it had 232 million shares traded today.  
This again kind of leaves many of us baffled. 
It's a Chinese stock with absolutely no news  
whatsoever. There is no fundamental news to 
support the move. So why'd it go up? Well,  
we can only speculate. Uh I I sigh because we've 
seen I you know I've been trading for a long time.  
We've seen these moves more often than I can 
count and we never really know exactly what  
gets them started back here. Some of them pop up 
like this and then go all the way back down. And  
that's probably what shorts were hoping for. A 
quick squeeze up to a dollar a share, rejection  
from a dollar, a fade, and it's over. But this 
one rallied again. And because of the fact that it  
closed in the previous session back here below 75 
cents a share, the halt bands were every 15 cents.  
So if it went up 15 cents in less than 5 minutes, 
it would halt for five minutes. And so this stock  
halted a bunch of times. Halting up, halting up, 
halting up, halting down, halting up, halting up,  
halting down, halting up, halting up, halting up 
again, again, then halting down once, twice, three  
times, then halting up once, twice, and then right 
here it halts up at about $2.50 and it resumes way  
up at $4 a share. That's unbelievable. And look 
at this. As the price went higher, the divergence  
of volume declining. I think the market makers 
took advantage of short sellers. And what they  
did is they pushed the resumption price so high it 
would force those shorts to cover. They cover and  
then they pull the rug right back down and it goes 
all the way from four back to under two. Then it  
rallies up, halts down, and then at the close goes 
from $3 all the way up to a high of over well,  
let's see, $8 a share, right? Right there, $8 a 
share. And then it comes all the way back down.  
What an unbelievable move. So, one of the things 
I actually was talking about this morning was that  
um you know, I'm not a huge fan of trading 
um after the open these days because I don't  
like getting caught in halts. These halts can 
be very unpredictable. In fact, we had a halt  
this morning on VIA right here. Va, it halted up 
at 620 right here. And while it was halted up,  
it showed a resumption of 550. So, it's halted up 
and then it's showing it's going to resume down  
here. Now, it ended up resuming up here. It dipped 
for a second. It pops and then it sells off.  
The fact is, while a stock is halted, you cannot 
sell your position and you can't buy it. If you're  
in a short position, you want to cover, you're 
stuck. And so, you're at the mercy of whatever  
the market makers want to do. And so, if they 
want to drop it $3 a share while it's halted,  
they can do that. And we've seen it happen before. 
If they want to rip it $3 a share, they can do  
that as well. And so, we've had stocks where 
it looks really good. You're caught in a halt  
going up. You think it's going to open higher, 
it opens lower and then instantly halts down and  
you're smoked. Completely smoked. The biggest loss 
I ever had, $240,000 loss in one trade. I was read  
$275,000 on the day was from a stock that I got 
caught in a halt and it opened lower and halted  
down and I was in two halts going down. It was 
a disaster. So, you know, I'm not opposed to  
trading during the, you know, regular market. Um, 
but in pre-market, we don't have halt levels. So,  
it makes me feel like I've got a little bit 
less risk. I just don't like the feeling  
of being stuck in a trade. I don't like that 
feeling. And so, if you traded RET today, well,  
you had to get comfortable being in halts because 
this thing halted a lot. And then, of course,  
after hours, it made finally its biggest move of 
the day. Biggest move of the entire day, right?  
But still on relatively light volume compared to 
earlier, which is an interesting divergence. So,  
it sells off and kind of bases out. Are you going 
to have another shot at it tomorrow? I don't think  
so. I would look back at FTFT from yesterday. FTA, 
FT, FT, sorry, also had a parabolic move. Uh, not  
quite as big. Came back down and then it kind of 
unwinds. And I think that's more likely what will  
happen with RETO. This is the high right here. 
And I would be surprised if it retests that level.  
I think probably there will be some traders 
that go for that, but I don't think it's going  
to have the volume or the ability to retest those 
highs. That's my gut feeling. I could be wrong,  
but that's that's my guess. So, after this big 
move on RTO, um, we ended up having WAFU. This  
is another Chinese stock squeezing up as you can 
see right here. So, this one goes from A140 up to  
320. A big move right there. Then we had, let's 
see, AIXI. This one pops up, squeezes up Chinese,  
no news, comes all the way back down. So traders 
kind of jam this up looking for the next one,  
but nope, this one didn't hold. Higher volume 
on the red candle. Quite a bit higher. WW,  
this is another Chinese company. Pops up, dips 
down. So what you can see happening now is exactly  
what I discussed when we were first talking about 
what happens the at the end of a cold streak.  
What happens at the end of a cold streak is you 
got a stock that makes a huge move. Whether it's  
because of great news, whether it's a grinder that 
just kind of finally pulls away, or it's the third  
scenario of a no news Chinese stock like what we 
had today. This is tricky because now traders are  
looking for no news Chinese stocks for the next 
move. But we don't understand really what was  
going on behind the scenes that allowed RET to 
make such a big move. And it would be kind of  
ridiculous to assume that every Chinese stock will 
have the same thing going on behind the scenes,  
those same dynamics that would allow a similar 
move. But speculation being what it is,  
traders are jumping in what's moving. And so 
I'm thinking tomorrow in the pre-market session,  
we will likely wake up and see a number of Chinese 
stocks leading the scan to have no news. I think  
we should focus on which one is the most obvious. 
Today, Va was the most obvious stock in the  
pre-market session and it continued at the open. 
Even though it wasn't as clean as I would have  
liked because of the halt levels, it was the most 
obvious pre-market and it continued. Yesterday,  
we had FTFT, which was not the most obvious 
pre-market, but it once it started sort of  
gaining some momentum, it maintained the the 
status of being the number one stock all day. So,  
let's pay attention to what is the number one 
stock tomorrow. there's a very good chance  
it'll be a foreign listed security with no news 
and that's riskier, but as long as it's obvious,  
I'm probably going to be comfortable trading it. 
I want to be careful jumping from stock to stock,  
like jumping from WNW to AIXi to, you know, Wahoo. 
That's where you can start to get diminishing  
returns. It's musical chairs, traders jumping from 
stock to stock to stock, but none of them really  
holding up that well, and then you end up getting 
smoked on some of these. So, you want to be really  
careful. This was a Singapore stock that popped 
up. N AMI, this is a Chinese stock that's popped  
up a couple of times. So, this is what I'm kind of 
expecting for tomorrow is that there's going to be  
a bit of disperse attention. It might be chaotic 
in the pre-market session as traders are jumping  
on whatever is moving. So, be careful, manage your 
risk. And there's no reason to, you know, try to  
hit a home run or do anything crazy. Size down a 
little bit. When you've got heightened volatility,  
it's a good time just to slow down, try to capture 
some of the opportunity, but do everything you can  
to avoid taking a big loss. So, you know, today 
for me, I didn't take any trades this afternoon.  
I stuck with my, you know, pretty pretty solid 
rule that if I don't make money pre-market,  
I don't want to break the ice later in the day. 
So statistically I make the most early and on a  
day where I've made a lot early I have a cushion 
to take some risk but I didn't have that cushion  
today. So, I you know was I feel like made a good 
decision um and didn't overstay my welcome and as  
a result I sit exactly where I sat um you know 
8 hours ago or 12 hours ago uh zero trades so  
nothing in the small account nothing in my big 
account and um you know that's fine but tomorrow  
I would of course love the opportunity to break 
the ice but I don't want to end up chasing the  
backside of a move. So, if I trade RETO tomorrow, 
wouldn't that kind of be just trading the backside  
of this big move again? You know, could this come 
back up and gain some momentum? It could. It's  
not the most likely scenario. So, I don't really 
expect it. I expect that traders being speculative  
are looking for the next move like this. Rather 
than trying to trade this from $5 to $50, look  
for the next stock they can trade from 50 cents 
to $5 a share. that's realistically what people  
are going to be looking at. And uh so, you know, 
I'd keep my eyes open for it, but do everything  
you can to manage your risk. So, thank you guys 
for tuning in to this second special recap, and  
I'll be back at it streaming first thing tomorrow 
morning at 7:00 a.m. Eastern Standard Time. And a  
link for a twoe trial is pinned at the top of the 
comments and posted in the description. So, if you  
want to watch over my shoulder and use the same 
software I use, two weeks for 20 bucks. I think  
you'll get a lot out of it. I think you'll really 
enjoy it. So, I hope you check it out and I'll  
see you back at it 7 a.m. tomorrow morning, less 
than 12 hours away. All right, I'll see you then.