a 780% Short Squeeze at 8am!

What's up, everyone? All right. Well, the 
moral of the story is when you wear green,   good things happen. I've got my green 
shirt on, and I'm sitting up $18,63021. This morning, we had a stock that went up $780. 
Yeah, that's right. Yesterday, it was at about   30 a share Friday. Today, it hit a high of 
about $2.65. That's an incredible move. Now,   as you might imagine, I don't like trading these 
lowerpric stocks. And so, even though this stock   went up 780%, it's the stock today that I made 
the least amount of money on. But, it was a signal   that momentum was back. In fact, going up 700% 
on 200 million shares of volume before 9:00 a.m.,   that's a huge move. And so, we had a number of 
other stocks that also made big moves today.   A challenge this morning was trading stocks with 
no news versus trading a stock with news. The no   news stocks actually did better than the stocks 
with a clear catalyst. And here's why. When   there's no catalyst, people are speculating 
on what it could be. We're in a market right   now where, you know, there's been a lot of I I 
guess just call it flatout insider trading where   we're finding that people took big positions just 
before a news catalyst comes out and eventually   those people are going to get in trouble for that. 
But in the short term, what market participants   are realizing is when there's a sudden surge 
of momentum, maybe somebody knows something.   And so we can only speculate what that might be. 
Now in some cases that initial surge of momentum   is maybe I don't know it's nothing and the stock 
will never have news. It was all just a illusion.   But in other cases the stocks sure enough post a 
headline a few hours or a day after that initial   spike which feels frustrating and it feels unfair 
to the little retail traders like us who are just   kind of trying to make a little profit here 
and there and we don't have that inside. Well,   it's illegal to do insider trading, but we 
don't have that advantage that of course all   these big money investors or whoever they are, 
politicians, I don't know, seem to have people   that are on the inside. Unfortunately, we're in a 
I I would say a a bit of a political environment   where I think a lot of people feel that they can 
just get away with this stuff and it, you know,   it is what it is, but it we see it trickle down 
into the market. we see the actual impact in the   market when we see a stock squeezing up with 
no news and we're thinking what is going on   here. So when the stocks are moving with no news 
in this current environment people are thinking   what does somebody else know? They shouldn't know 
it but they know it. They're acting on it. So am   I just going to piggyback on this momentum? 
And so in some cases we're piggybacking on   momentum and as it turns out there was nothing 
there in the first place. And in other cases,   we're finding later that the news comes out after 
everyone's already traded it, which is very it's   it's unusual grand scheme of things, but in its 
current market, it seems more and more common. So,   on the other hand, you have a stock with news that 
pops up. Now, you're you're trying to quantify how   good is this headline. So, we had a stock this 
morning that popped up with news and it started   squeezing and I said, you know, guys, I'm a little 
concerned about this one because it's moving up   really quickly, but I wonder if it's moving up so 
quickly because the overall market's hot and not   because the news is actually that good. Because 
the issue here is that when people actually dig   into the headline and realize that the news isn't 
that substantial, there's no speculation that   someone knows something. That's the headline. 
It's not actually that big of a deal. We just   had an overreaction of buyers because of FOMO. 
People didn't want to miss the next big move,   but that's going to come right back down. So, 
case in point, here's the example today of that   exact thing. LABT. And this is my P&L. You could 
see. So, I'm at $5,500 on LABT. This is the stock   that popped up with news and it came all the 
way back down. It, you know, this thing was up   uh over 100% and now is flat on the day. So, a 
full round trip. So, we'll just do from yesterday,   167%. And now it's all the way back down. So, on 
this one, and we'll just break this one down first   since it's top of mind. On this one, it initially 
pops up, as you could see, right down here up to   about 220. It pulls back, and then it rallies up 
to 250. Because we had already seen such big moves   in the market, I thought, all right, well, maybe I 
should go ahead and break the ice on this one. And   so, I did. And I broke the ice using the 10-second 
micro pullback. So rather than even waiting for   a proper one minute pullback, I was using the 
10-second pullbacks in areas like right here and   right here. And then again, you'll see another one 
right here. And then we had this one right here,   which actually turned into a proper one minute 
pullback. And I didn't take this one. I wish I   had, but I didn't. Then it squeezes all the way up 
to four. And we had resistance and heavy selling   at $4 at the whole dollar. It sells off down here. 
It bounces off of 350. My last trade on it was a   dip at 350 for a bounce back up and it broke 
back below 350. I got out very quickly. It ends   up selling off and coming all the way back down. 
A reminder not to overtrade the backside of the   move when it's selling off. Now, right here, this 
was a dip and I was hoping it would rally back up,   but a little bit risky because it obviously 
had a heavy seller up at four and then starts   to roll over. This was the area to be aggressive 
the front side of the move on these pullbacks.   But eventually the news mattered. So what was the 
news? All right. So we have uh this headline here   um bio it's a biotech company announces positive 
data for the advancement of lead candidate NU3 in   infected diabetic foot ulcers. Okay. So so that's 
our headline. So on the surface you know you read   through this and you're like okay I mean I'm not 
you know again I'm a trader. I focus on trading   price action reading level two. I'm not an expert 
in all this stuff. So, it's very hard for me to   interpret and put this into context of how good 
or bad this is. So, I just trade the price action.   But, I knew that there was a risk that this was 
going to get a bit overbought because of the   euphoria and excitement of the market today. One 
thing that I noticed here was a divergence. The   divergence, can you spot it on this candle right 
here? highest volume of the day and the candle was   smaller than these previous big candles. These 
were big candles rallying up and then all of a   sudden highest volume and it hits its head at 
four and can't push higher. So this is a micro   pullback. The first leg went up by four candles. 
Micro pullback goes up one candle and then it   stalls out and rolls over. So that's not good. So 
this is the one with news. Didn't end up working   out well. SBFM, no news. There's no news on it. 
Canadian company, so all the executives wear   denim, right? Canadian tuxedo. And the stock 
goes up 780%. They're saving a lot of money,   not having to buy fancy suits. No New York City 
firms here. And you know, in spite of no news,   you get this big rally. So you get the big pop at 
4 a.m. Then it pulls back. And when you have a big   pop like that, especially with this topping tail, 
it inherently is bearish. It tells us that yes,   the stock popped up, but no, it wasn't able 
to hold up. So, is it going to be something   that's worth considering? Usually, I'm not that 
interested when you see those big topping tails.   But in this case, it does rally back up, pulls 
back, then it comes back up again, dips down,   and then we start to pull away. So, I'll just move 
this over. So, we get this little dip right here,   and then dip, dip, and then surge, topping tails. 
This was a grinder. It was definitely a stock that   was grinding higher. It was not super clean. My 
first trade on it, my first entry was at a $1.98.   So, you know, I took this little trade right 
down. Was it right right in here? No, it was um   it was right here. It was on this pullback right 
here for the break over two. That was my first   trade on it right there for the break over two. 
And then I took another trade a little bit later   um right in this area. I was anticipating a a 
possible curl back up to the high, but that didn't   work out very well. In any case, broke the ice 
up $2,600 on SBFM. So, that was my first trade of   the day. And I mean, this thing was like cranking. 
The volume, you know, as of right now, let's see,   the volume is $234 million shares. It's got a ton 
of volume. Very liquid. Could buy and sell if you   wanted to. 100,000 share positions. I mean, you 
could get in and out with huge size. I I didn't   go that big, but you could have if you wanted 
to. And so, got a little icebreaker on that.   So, as this started to pull back, the second 
leading gainer was GovX. And I thought to myself,   I'm pretty sure attention's going to shift. 
If GovX hits a new high of day right here,   people are going to abandon SBFM. Well, they 
already are because it was rolling over,   and they're going to switch to the second leading 
gainer, which just so happens to also be a biotech   company. A biotech company with no news. 
Very similar. Stock was already up a ton. So,   I I switched to the second leading gainer and I 
jumped in at $3. Boom. I punched it at three. I   added 325, 335, 350. It goes up to four. It 
goes up to 450. It hits a high of $5. $4.99   to be exact. But again, this is an example of that 
big topping tail. So, we hit that high and then we   come right back down from five all the way back 
down to three, then bouncing back up to 350 and   then kind of fading and still hanging out around 
three, but not not holding up really well. So,   on the one hand, shorts got squeezed out. Uh, 
but on the other hand, they clearly added back or   there were people that were selling because this 
did not hold the move or maybe the company was   selling. That's always a variable. You know, some 
of these companies will take the opportunity. Hey,   stocks up 150% on no news. We're going to sell 
some shares on the open market. We're going to   raise some money. So, that's always a risk with 
these. Here's the good news. We had some really   great momentum this morning. What does that mean 
for the opening bell? Because it's not even the   opening bell. Here's my approach. If you recall 
last Monday, I sat down, made about $20,000,   and then I gave back 90% of it. And I was pretty 
devastated. I want to start this week off on the   right foot. So, I want to take this $18,000 
and bank it. I want to keep it and I want to   roll that momentum in to tomorrow. I want to 
have another good day tomorrow during the 2,   three hour window from 7 a.m. to 9:30 or so 
where I usually do the best. Take that profit,   do it again on Wednesday, do it again Thursday, 
do it again Friday. I don't want to overstay my   welcome trading the backside of these moves. And 
I don't want to overstay my welcome trading later   into the trading session when we're going to have 
to start dealing with stop orders, market orders,   and circuit breaker halts. All of that creates a 
level of volatility where I find it more difficult   to manage risk. So, I'm going to focus on just 
trading during this window when I do the best,   extract as much profit as I can, but then take 
my foot off the gas, walk away, and come back.   That requires a high level of discipline, but 
I'm going to work to exercise it this week. So,   whatever happens for the rest of the day, I won't 
know about it till I sit down tomorrow morning.   I'm not going to be staring at charts on my 
phone. I'm not going to be glued to the, you know,   to the price action. I'm just going to let it be 
what it is. I had a good day here. It's a great   start to the week. It adds nice profit to um to 
the month, I guess. I Let's see. I was up, we   were looking at the um the P&L on the month uh in 
the recap on or the game plan episode yesterday.   I think I was at like $62,000 on the month. Um so 
if that's correct, then that's going to put me up   to close to $80,000 on the month after today's 
gain. So let's just check the the month of May.   So this will be the second, no, third biggest 
green day of the month. Um so here we go. So,   it was at 64,000 on the month. So, it'll be at 
uh 82,000 on the month after today's gains. So,   biggest green day was 46,000. That was the 
second biggest green day at 17. So, today   uh today's actually the second biggest green day. 
So, this got moved to third place. This would have   been my second biggest green day, but I screwed 
up, overstayed my welcome, and gave back 90% of my   profit and went from 20 grand to well, whatever, 
$2,800. So, then I had two no trade days in a row.   than a red day. So last week I wasn't feeling that 
great. I finished the week, you know, at 3,000   versus my Monday high of 20 grand. So what if that 
happens again this week? I've got the 18,000 today   and then there's nothing tomorrow, nothing the day 
after, and then red on Thursday, I'll be really   glad I took the profit. On the other hand, if 
tomorrow's another solid green day, another even   bigger green day, then this week could be the best 
week of the whole month. It's out of my control   what happens. I just got to show up every day. 
But managing my risk and being disciplined about   keeping the profit is important. So for those of 
you guys tuning in perhaps for the first time,   I hope you hit the thumbs up. I hope you're 
subscribed to the channel. And I will put the   link for a twoe trial at Warrior Trading in the 
description and pin it to the top comment. During   that twoe trial, you can watch over my shoulder 
while I'm trading. And you'll have access to this   software right here, Day Trade Dash. Not on my 
screen share. You'll actually have it in your   own browser. So you can move your charts around, 
you can move your scanners around, organize it the   way you like, and get a sense of essentially what 
it's like to use the same tools that I use and   what it's like to listen to me while I'm trading 
each morning. So, as a reminder, trading is risky,   and my results aren't typical. So, always make 
sure you're practicing in a simulator before   putting real money on the line. I'll see you 
guys back at it first thing tomorrow morning.