Biotech News for the Win!

AI Summary

Transcript

What's up everyone? All right, well I'm bouncing 
back into the green today thanks to a couple of   nice trades. We had one stock with biotech 
catalyst. It was actually an interesting   catalyst. Um we've seen a few other companies 
that have put out these headlines about using   psilocybin psychedelics for the treatment of 
various uh disorders. And so we had a stock   that made a pretty big move on that catalyst. 
There was another one earlier. And then just   after the opening bell, we had two other stocks 
that made big moves. one from $11 up to over 20,   the other from $7 up to about 12. So, 
we're definitely seeing some volatility,   and I'm grateful for that. Volatility creates 
opportunity. Yesterday, we kind of had a lack   of volatility, which meant there wasn't much to 
work with. And although we had that one trade   that I jumped into and I thought it was going 
to work, the combination of market data issues   and I don't know, sentiment being a little bit 
cooler, that one didn't pan out and I took the   loss on it. But if we jump onto the screen share 
today, you'll see my trade. So, um, this was one   of these mornings where when I first logged into 
my platform, as I always do, I'm logged in in my   um my main account. So, Lightseed, like many 
other platforms, allow you to sync multiple   accounts. So, I can sync my retirement account 
with a traditional margin account. Now, I don't   typically want to trade in the traditional margin 
account because all of the gains are taxable. So,   if I switch over to my margin account, you'll see 
this was my first trade that I took, $3,152.35. Now, I realized as soon as I took the trade, 
uh-oh, I'm in the wrong account because I tried   to take 15,000 shares, but I don't have the 
buying power in that account to do it. And so,   I only got the 5,000 shares filled. So, I took 
the profit on that. Whatever. I then switched to   my retirement account for the rest of the trades. 
So, my trading is split between these two accounts   today. not ideal just in the sense it'll have 
a little bit of um unnecessary taxable income   on the um the margin account side, but it's not 
the end of the world. In any case, um, my small   account challenge that I started in January of 
2017 with $583, that challenge includes all of   the profit from my retirement account because I I 
created the retirement account from the profit of   that challenge of those early years, which is when 
I made those uh initial contributions. Whereas my   uh current margin account is just an account that 
I set up uh really so I could do demonstrations on   short selling and some of the other components of 
trading that are um you can't do in a retirement   account. And so in any case, it's not part of 
my small account challenge. So I don't really   like trading in it that much. Number one, because 
it's taxable, and number two, because the profits   uh don't count toward my goal of growing that uh 
you know, what had once been an account less than   $600 as much as I possibly can. It's currently 
at a little over 20 million in gross profit. So,   yeah. Does the $3,000 make a difference? No, 
not really. But I'd rather keep all the profits   in that uh retirement account. Uh and this is the 
only account right now that I use for uh the small   account challenge pre well it's not really a small 
account anymore but you get the idea. Initially   I had used one of the offshore brokers because of 
course in those days we still had the pattern day   trader rule and then uh in 2017 I switched over 
to Lightseed and I've now been using Lightseed   for almost 10 years with this account and it's 
been it's been great. All right. So, in any case,   um, as I sit here today, up 8,300 in my 
retirement and another 3,000 in the main account,   the first trade was AXIL. So, we'll look at that 
one first. AXIL. This one popped up this morning   and it had a headline, as you can see right here, 
of expanding a partnership with Walmart. And so,   you know, we've actually traded the stock before, 
a partnership with Walmart is a good catalyst.   I've got no problem with that headline. It's it's 
a decent headline. The only thing is that um when   I had looked at this headline the last time this 
company popped up um it's I thought it was kind of   like I don't really know how big of a deal it is. 
Um so they had announced a partnership an initial   launch with Walmart a few months ago whatever. Um 
it's for hearing protection. So I don't know if   these are like earplugs or ear muffs or whatever. 
Um I don't know. I just I just feel like I don't   know how big of a deal this really is. In any 
case, uh the stock did pop up and so as it started   to pop up, I watched it um for a pullback. So if 
I pull up the chart right here, you will see that   the one trade that I took on it was right here 
where I jumped in on this little pullback at   $9.37. So you can see right there, sorry, $9 
$9.39. So that was my entry right there. I wanted   15,000 shares, but I couldn't afford that because 
I don't have enough money in the margin account.   So, I only got 5,000 shares filled. All right. 
So, I got in with 5,000 shares and I jumped out at   10:05 101 $10 and90. So, $3,100 is pretty decent 
on a 5,000 share position. Uh, I mean, that's   that's a solid trade. It would have been would 
have been nicer if I'd gotten 15,000 shares and   it had been in my retirement account because then 
it would have been up almost $10,000 on the first   trade right out of the gates. Uh but you know, 
at the end of the day, it's also worth noting   that this was lighter volume. Uh that would have 
been a bigger position. I might not have gotten I   would have gotten more slippage on the entry and a 
little more slippage on the exit. So the the total   win would have been compressed a little bit. Um, 
and so it I don't know, might not have even been   that great of a trade with bigger size, but with 
smaller size, I was able to jump in and jump out.   Then it drops down. Was watching maybe for a 
curl. Um, higher volume rejection right there.   Watching the one minute chart after sort of that 
first 10-second pullback and it just, you know,   we had a higher volume red candle right there. 
Boom. Sells off. Topping tails, topping tails,   then below VWAP. And there were no other trades on 
it. And now it's come all the way back down. Okay,   so that was the first trade and that was at like 
what was it? 7 a.m. 7 that 7:30 uh 8 a.m. That   was at 8 a.m. So that was our first trade of the 
day. So after that I switched to my retirement   account and I didn't think I was going to take any 
more trades. I thought that was it for me. Uh you   know 8:30 came and went nothing. And then all of 
a sudden XTLB pops up with a headline at what was   it? 9. It was just a it was just after 9. Uh this 
popped up at 8:55. Uh so 855 this headline comes   up and um so we'll jump on to this um other page 
here so we can scroll down a little bit more. So   announcing an acquisition establishing a leading 
psychedelic biotechnology platform advanced   clinical pipeline D for psilocybin technologies. 
So this has been a bit of a hot topic. Uh we've   had a couple other big moves on stocks in the 
psilocybin psychedelic medication space. You know,   they've got some interesting results and uh so 
that it's something that's being actively pursued.   And so when I first saw it pop up, I saw it and 
I thought with a catalyst that could work, but I   wasn't sure. And it it's a little cheaper. So when 
it first popped up down here, I thought, h it's a   little cheaper. You know, 240 up to 340. That's 
nice. I don't know. Let's see. It drops down and   then right here I'm kind of thinking maybe and it 
pops up to 315 320 and I'm sort of like looking   at it. I have my order ready to get in at 320. 
Wasn't totally sure. It goes to 330 then it drops   down. It's like no. And then it comes up here. 
I was like h I don't know. Double top breakout   maybe. Then it pulls back and then I got in right 
here. I got in right here at 344. It hits 354,   drops down and I was like, "Oh, you know, okay." 
Um, I don't usually like to get in and then, well,   my average was I think my average was actually 
right down here, but I don't like it when it pops   up and then drops right down right away, but then 
it came back up and then we got this really nice   micro pullback there and then it squeezes all the 
way up to a high of 408. So, I took my profit off   the table up here, but I added to the position 
thinking this was going to really move faster.   And I didn't take anything off the table at 408. 
In fact, most of my exit was down here at 380. So,   25 cents off the high, but still locked up some 
profit. It pulls back. It goes sideways. And then   I did try getting back in. Um, and we had this 
squeeze here. So, I was watching it right here   and that didn't work. But I had previously tried 
to get in here and it didn't work. So, I saw it   here and I was like, I'm going to wait. And then 
it came up and I was like, I don't know. And then   it breaks, pulls back, and then I got in right 
here and added. And I actually ended up adding all   the way up here and then stopping out and giving 
back $700 off the top. So even though that worked,   I lost on it because I added too high. And then it 
squeezed again at the open and then rolled over.   Now meanwhile, if you look at the volume today, 
SAGT has 89 million shares of volume. Um XTLB   has 53 million. Um but you know, there's a lot of 
volume on SAGT and I think it was a little bit of   a distraction. This is a stock that was a grinder. 
Topping tails up and then down, up and then down,   up and then down, up and then down. It just wasn't 
easy. It didn't pull away. And so for me, I said,   "Nope, I'm not even touching it. I don't want to 
mess with it. It's not worth it." And so I ignored   it. Then we had our DAC pop up on the scans this 
morning. A little crazy because it went up all the   way up to $12. It's now halted coming back down at 
$9.90. So I first saw it on the scans in this area   down at 650. It was up about 30% on the day and it 
was on our lowflat top gainer scanner currently up   100% but it was up only 33% on the day. And I said 
to myself, I was like well I said not to myself   I said to everyone who was tuning in uh this 
morning as part of my market commentary. I said   here's the problem with RDAC. It's a spa a special 
acquisition company special purpose acquisition   company. These were really popular a few years 
ago. The idea with these companies is that it's   a shell company that's created and they sell 
shares at $10 a share and anyone can buy shares.   Institutions often buy big blocks of shares, 
millions of shares. Retail traders can buy them   as well. And so you buy shares and now the company 
from all of those shares that they've sold at $10,   what do they do with that money? What are you 
even buying? You're buying a shell company. So,   you're buying $10 a share and what you're buying 
into is that the company will take all the money   they've raised and they're going to go find 
a privately held company to purchase, merge,   and bring that privately held company public. 
So if someone wanted to buy um you know what   whatever what was um I mean no one's going to 
do well SpaceX is doing its own IPO but you know   let's just say like one of these companies goes to 
some privately held company that's you know really   popular and has a lot of buzz around it that I if 
all of a sudden the news got leaked that RDAC you   know was in talks with so and so about doing 
a merger the stock would start going up even   before the mergers announced That's what happened 
with DWAC in 2021. There was rumors that they were   going to be merging with Truth Social and they 
did. And following the merger, they changed this   the symbol. Now, when the company does the merge, 
if you bought into the company at $10 a share,   you could say, "Hey, actually, I don't want to 
own this new company. You know, I don't want to be   involved in it." And you could just get your money 
back at $10 a share. So, you can do a redemption.   Um, and then after all the redemptions, the 
money they have left is what they can actually   use to finance the deal. And sometimes it's a 
little less than the money they raise because   of these redemptions. So why was RDAC going up 
today? Well, there was no news. It's a special   purpose acquisition company. Um, and so we were 
left wondering and and I said basically, you know,   I is someone out there speculating that maybe 
there's talk of a merger? Maybe. I haven't heard   anything so I don't know but all the trade really 
is at this point is speculation and rumor and   um it's possible that there's people that are more 
on the inside who know what's going on and will   either trade in that direction or will short the 
move. Now of course that's insider trading but as   we've seen in this market it seems like I mean I 
I don't even know if you count the number of times   we've seen insider trading especially when it gets 
into the poly markets and stuff like that. So, it   feels like I don't know that especially with some 
of these moves, it just the people behind this   stuff don't seem to care at all. I I don't know. 
I mean, especially when it comes to companies that   are foreign listed, Chinese, Malaysian, Singapore. 
So, you know, I I just steered clear of it. I just   said, I don't know. I don't want to mess with 
it. I don't see what the catalyst is. I'm not   sure. And then at the open, this is interesting. 
Pretty high volume here on this spike from 7 to   nine. Didn't trade it. Comes back down. Then at 
the open, it goes from seven to to 13 on lighter   volume. That's odd. That's a divergence. A bigger 
move, but on lighter volume. You wouldn't expect   that. So, you know, I don't know what to say 
about this one. And then EUDA, this one popped up   um on very light volume from $12 to 26. Right now, 
it has 204,000 shares of volume. That's it. So,   in terms of liquidity, there's not liquidity. I 
couldn't have bought and sold 20,000 shares of   this. I mean, I would have gotten insane slippage 
if I tried. I would imagine, you know, look,   if there was a big seller, I could have bought the 
shares from them. And if there was a big buyer, I   could have sold the shares to the buyer, and maybe 
I wouldn't have gotten slippage, but it it doesn't   feel like it would have been a lowrisk trade 
by any means. So, um, today felt a little bit,   um, you know, attention being dispersed. 
SAGT taking a bunch of attention earlier and   then we finally got, um, you know, a few that 
worked a little bit better, but I don't know,   today was a little choppy. So, you know what? I'm 
grateful to be walking away with some profit in   my pocket between the two accounts. I mean, you 
know, in my retirement accounts, it's $8,300. So,   tax-free, you know, live to trade another day. 
I'll be back at it first thing tomorrow morning.   This is so far the best day of the week. Um, 
tomorrow's the last day of the month. So,   it's not, you know, I'm not making the $75,000 
that I kind of hoped I would make this week.   I was up yesterday nicely before I went red. 
Disappointing, but it happens. Um, you know,   so in in any case, I'm just chipping away right 
now and now we're getting our sights kind of on to   the month of May. So, new month right around the 
corner and then we're about a month out from the   PDT rule being part of history. So, it was enacted 
on February 27th, 2001 and June 4th, 2026, it is   going away. So, as of June 4th, you'll be able to 
day trade with a $2,000 account, which is pretty   darn exciting. But, as always, make sure you're 
managing your risk because trading a small account   is risky. Trading in general is risky. So study up 
and practice a simulator before you put real money   on the line. All right, so that's it for me. And 
again, I'll remind you as always that my results   are not typical, so please take it slow. And 
I'll see you guys streaming tomorrow morning at 7