What's up, everyone? In today's episode,
I'm going to break down my watch list
for Monday morning and the game plan for
the week ahead. We're coming towards the
end of the month of September and to be
honest, I'm relieved because September
has been the worst month of the entire
year. Well, you know, there has to be
one month of the year that's the worst
and there's one month that's the best
and as of right now, June was the best
month of the year and September is the
worst. The good news is typically, I do
pretty well in Q4. Earnings towards the
end of the year start coming out. A lot
of companies, they want to get their
stock price up so it finishes the year
strong and so we usually have a good Q4.
October, November, December, I'm really
hoping that we see some good momentum
and I suppose there were certainly some
signs of life last week. But, of course,
what was interesting was our big move
last week was RITO.
RITO ends up going up 3,000%
uh RE No, RETO. Um ends up going up
3,000%.
It's Chinese stock and it has no news
whatsoever. And when you look at this
chart, you know, you have to kind of I
don't even laugh, maybe. This stock went
for about 30 cents a share up to $21
and then now is back at 19 cents.
Geez Louise, what in the world? It went
up on absolutely no news, squeezes up
and then they put out news of a
secondary offering. They sold $15 worth
of stock to raise money while the stock
was up at those crazy high levels. You
know, GameStop did the same thing. When
Roaring Kitty came back the second time
on GameStop and the stock squeezed up
100%, GameStop dumped billions of
dollars worth of stock on the open
market to raise money.
And these companies can do that at any
time. They basically convert this high
stock price to cash on the balance sheet
by selling their own stock when the
price is up. When they do that, it
increases the float, but it puts money
on the balance sheet. And if, you know,
management believes that they can take
that money and turn the company around,
then maybe, you know, years from now,
even though right now it's bad for
shareholders cuz the news of the
secondary offering is what sent the
stock all the way back down to 19 cents
a share. Uh, but maybe in the long run
it'll be for the best. Probably not, but
I suppose you never know. So, RITO was
our big move last week, uh, and that was
quite impressive. And then as a result,
naturally, we had a number of other
Chinese stocks that made big moves.
Chinese stocks on no news.
And so, as we look at the, uh, watchlist
for Monday morning, we've got to look at
our after hours top gainers from Friday.
So, GN, uh, GLND was our, uh, leading
gainer on Friday after hours. Went up
119%.
Greenland Energy Company, Energy Fossil
Fuels. Greenlandling stock soars after
Trump announces US security agreement.
So, here's the deal.
To me, this is not the typical type of
stock that I would do well on for two
reasons. Number one, obviously the
float. It's a little higher. So is RITO,
but typically over 20 million shares,
these stocks are not as easy to trade.
They're often easy to borrow as well,
and they see a lot more short selling as
they start to move higher. The fact is,
stocks that go crazy, that go up 300,
400, 500, 1,000%, they almost always
have lower floats. So, generally
speaking, availability of shares to
borrow on really low floats will be more
difficult than stocks that have higher
floats because even the clearing firms
recognize that and the market, the, your
brokers, that there's more risk letting
you short these higher risk small caps.
So, when the float starts to go higher,
you start to get more shares available
to short, which means as the price goes
up, there's sellers that come in more
quickly, and that in fact in in in
effect becomes a bit of a
self-fulfilling prophecy that prevents
the stock from ever going up, you know,
2 3 400% in a single day.
So, when you have a stock like GLND,
yes, the float's high, number one, but
number two, it's an energy sector. And
energy sectors rarely are are good
sector for small-cap traders who are
trying to day trade, getting in and
getting out quickly. So, while it's
possible that GLND
will continue in the pre-market session,
and to be fair, the chart looks pretty
good for that, uh I wouldn't really set
high expectations on it. Looking at the
daily chart, and this is all very, you
know, the technical side of trading,
looking at the daily chart here, we've
got a couple little windows. Um there
was a gap up right here,
152 up to 179,
and now we've got another gap up here a
little higher. Let's see, right
Where is it?
Right there, 353, and then that gives
you uh room up to 528. So, you've got a
couple gaps on the chart, which are
interesting. Um all-time high on this
stock I have at
$23 a share, but look at the volume.
Red, red, red. So, when it pops up, it
sells off, which is typical of energy
stocks. So, that's GLND. That's your
first one to keep on watch for Monday
morning on the watch list. GM GRML, this
is the second one on the watch list.
This one, Greenland Mines. Okay, so
we've got another we got a little theme
here. This one goes from 280 up to 460,
um but again, mining, energy, really
similarly
uh
kind of boring sector for small caps.
You have a recent reverse split back
there. You've got a lot of room to the
200 moving average, but I'm not going to
hold my breath for that kind of move. I
just don't expect it to play out and
continue for days and days. Now, VEEE,
this is the company that did a merger or
is announcing a has announced a merger
and that sent the stock up on this
incredible tear back here as it went
from like $4 all the way up to $56 a
share. It's since come back down and
usually the bounces on the backside of
this kind of move are pretty mundane.
They don't usually work out very well.
So, I'm not super interested in VEEE.
LOBO, this one's got a 13 million share
float, but for me the main issue is that
it's a little too cheap. I don't usually
like those cheaper ones.
CRML, this one's got a 58 million share
float. That's a bit too high. Again,
tied in with Greenland. Um, let's see.
Then we've got HWH.
This one
um popped up 5.7 million share float,
but it didn't have a lot of volume. So,
there's not a lot of liquidity behind
the move and now we're getting into
relatively small gaps. So, really the
only stock that's I think really worth
keeping an eye on probably is GLND. Um,
you know, but I suppose GRML, I suppose
they're both worth watching for Monday
morning. Now, from the perspective of
continuation, I'll sometimes check some
of the biggest movers as of late and see
if they have more um, you know,
opportunities for more momentum.
Something like AEMD on the daily chart,
you can see how it popped up here, but
then pulls back a bit. Uh, first daily
candle to make a new high can sometimes
give you a decent bounce, but when the
first day is a red candle, that makes it
a little harder to trust. MGN, uh, this
one let's see. Uh you can see some
higher volume days. It's a little bit on
the cheaper side here. I'm going to have
to take away the 200 moving average.
Sometimes when you have these stocks
where you can barely even see the chart.
Um to be honest, I'm not sure if there's
going to be really anything to trade on
this. Um
Well, we'll just have to see. I I I'm
kind of not expecting it.
PDSB 66 million share float, that's too
high. INDP float's too high. PSIG,
this one um from last week. You know,
you can see continued higher here. It's
on a pullback now. First daily candle to
make a new high. Could be something
worth watching. Usually though, I'm not
the biggest fan of that setup because
the volume is typically a bit lighter.
Some of these are either too cheap or
the float's too high, so they're not
ideal. VNCE popping up a little bit. So,
I would say for the 4:00 a.m. to 7:00
a.m. window, it probably makes sense to
keep an eye on the two uh Greenland
stocks, GRML and GLND.
Uh even though I'm not the biggest fan
of them, they may offer opportunities
just for scalps. And then, when I'm
sitting down closer to 7:00 a.m., I'll
be watching the top gainer scanner right
here to see if there's anything that's a
leading gainer that is really up my
alley in terms of meeting the five
pillars of stock selection very closely.
For those of you guys not familiar with
the five pillars of stock selection, or
for those of you guys that want to watch
over my shoulder as I'm trading this
week, I'm going to put a link for the
two-week trial. It'll be pinned to the
top of the comments and linked in the
description, so you guys can check that
out. And then you can use this same
software I'm using every single day for
charting, scanning, and breaking news.
And you'll get a feel for what's like to
be a member of our community. So, make
sure you guys check that out. I'll be
streaming tomorrow at 7:00 a.m. Eastern
Standard Time, but I'll remind you as
always that trading is risky. My results
are not typical, and there's no
guarantee you'll you'll success whether
you trade with me or you learn on your
own, so please manage your risk 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.