Transcription
What's up, everyone? All right, so today we ended up having a little bit of a surprise move. We had a stock that went up 400% on blue sky setup, but it was also a recent IPO, and it experienced relatively low volume parabolic momentum. I think it caught a lot of traders by surprise, including me. And because it caught me by surprise, I wasn't able to fully capitalize on it.
You know, if this was the theme where we'd had several of these work, then I would have been coming in, stepping up to the plate with big size. But because it wasn't the theme, I wasn't sure it would work, and so I traded it with smaller size. The profits are a little bit more moderate. So, I'm sitting here up $9,487.09.
Now, if you recall, yesterday I was red $36,000. I was only red $8,000 before I decided to continue trading after the opening bell and lose an additional $28,000 on FCUV. Now, if I hadn't taken any of those trades, then as of right now, today, I'd be back to flat. I would have made back all the $8,000 loss yesterday and would be green, you know, over these two days. But because I got stubborn and dug the hole so deep yesterday, today only gets about a quarter of yesterday's loss, which is disappointing. So, I lost more than I was able to make here in one day.
Well, today's a little bit of a smaller green day relative to the type of green days I've been having this month, and so, you know, it's fine. It's not a big deal. It's just a little bit discouraging realizing that if I had been more conservative, I would have made back today all of what I lost yesterday, if I had just, you know, thrown in the towel right then and there after that first loss. But in any case, let's get into PLSM.
So, PLSM right now, up 143%. It is coming back down a bit. Basically, it went from $4 to about $20 a share. It went straight up over the course of 15 minutes, and that was the move.
Now, if you missed that move, there really wasn't much else to trade, which is a reminder why it's so important to try, if at all possible, to show up at 7:00 a.m. so you can capitalize on these early moves. This was at 10:07. So, at 10:07, all of a sudden, you know, retail traders are able to start trading, and this stock squeezes up. It does put out news; they've got a headline, and when it first pops up here, I underestimated it because I saw the float was 50 million shares. Now, in fact, the float's actually about 3.5 million shares. So, sometimes in the new IPO, the float will be incorrect, and you've got to go check the filings. This was the case in this example, which was a little discouraging.
So, the all-time high was $10.28. It had popped up there on the day of the IPO, then it sold off. So, as soon as I saw that daily chart, I recognized that this was a blue sky setup over $10.28, which means all-time highs, no real resistance. You could say potentially this would have had descending resistance right here. But, there really isn't any ascending resistance on this in any way. So, there's no upside resistance, which is great.
Today is the highest volume day it's ever had, which is going to mean that the relative volume is super high: 15,000 times above average. Yeah, that makes sense because right now it's got 40 million shares of volume, and yesterday it had 8,680 shares. So, it went from no volume to huge volume overnight with this news catalyst that came out this morning. It is an Israeli company, healthcare medical equipment and supplies. These can work in terms of the sector, and obviously, it worked well today.
So, here's the way this kind of all happened. The stock ends up first popping up, as you can see right here, and I really, you know, I kind of fumbled it. So, we get this initial move where we squeeze from the low of about $6 a share down here, or $4 a share up to six. Micro pullback. I don't see it, 'cause it's not on my scanners, 'cause the float's a little high. So, I don't see that.
Then it goes up to seven, up to eight. I finally see it right about here, and I said, "Well, aren't we right underneath that daily resistance?" It dips down here and bounces off nine, and I watch that for a possible dip trade, but I didn't take it because this higher volume red candle here made me nervous. So, I didn't take that trade.
Then it rips through 10, goes all the way up to 11, up to just under 12, pulls back a little bit. There's some sellers at 12. And then when it breaks through 12, it goes straight to 14. It dips down for a second. Then it goes all the way to 18. It dips down for a moment, and it goes to 19. And so, I was just jumping in and out of this thing. You know, again, I kind of fumbled it, but I locked up $8,921.72 of profit, which was pretty decent, considering how quickly this moved.
And then I was just waiting for the next setup. And the next setup never came. It broke below VWAP, but it didn't squeeze back up. It tried. It based out down here, but I didn't really want to trade the backside over here. I figured it's better to wait.
At the open, it halted up. And this is funny. It halts up, it shows a flat resumption, then it goes higher. Then here it halts down, and we're showing a resumption at like $8 a share, a two-point gap down, before eventually the resumption price came up, and anyways. It just felt like this was the window, and if you missed it, you missed it. And I kind of missed it. I mean, I didn't really do that well on it. But after that trade, the next stock we had was FRTT.
And when this stock popped up on the high day momentum scanner, the first thing I noticed was that it was also a blue sky setup over four. When it first hit the scanner, it was at like $2.60. And I thought, "Well, it's got a little ways to go." Yeah, it didn't take long at all for it to break that level. So, look at this move. This ends up going from $2 right here to $6.50 in about 2 minutes. And I jumped on in the middle of that move, but only made like $500 on it. It just happened too quickly. Drops back down, again, higher volume selling, bounces back up. Now, this one had no news. So, that was a little bit of an issue.
And then we had ROC, also a blue sky setup, that popped up. And some traders were like, "Oh, look, it's a blue sky setup." And I was like, "Well, let's just give that a second." And it pops up, and then it ends up going red on the day and coming this far back down. So, you know, I guess the blue sky setup was a short-lived theme this morning. We got one surprise move, and that was about it.
But, you know, the fact is that move was pretty impressive, and it's a reminder not to underestimate how quickly these can move when they catch a bid. When they start to get some momentum, they can open up very quickly. During the pre-market session, there are no halt levels to hold it from going up 200, 300, 400% in a matter of 5 minutes. So, we ended up today seeing two really big moves.
Now, we still have a couple other stocks that are up a bit. BOXL, this one's up 100%. This one also did a halt, squeezed up and halted, opened way higher, and then halted a second time, then halted down, bounced, halted up, halted up, then halting down, halting up, halting down. Very volatile.
So, this one yesterday closed at about $3.43, which means the halt bands are every 10%. And so, when you have 10% halt bands, these can halt somewhat quickly. Halt up is $7.73, halt down is $6.32.
When you have a stock that was a little bit lower, FRTT, let's see, these halt bands are every 20% because the previous day's close was below $3 a share. And then if you have really cheap stocks, let's see, what was one like? Well, that's the warrants. Let's see, VTech. VTech, the halt bands are every 15 cents. So, these ones are even tighter.
So, you've got kind of this range where you can have stocks that have bigger halt bands, you can have stocks that have tighter halt bands, and that'll affect how they trade after the opening bell. But pre-market, it doesn't matter. So, pre-market and after hours to me are a little bit easier for that reason. You don't get hung up with getting caught in a halt and then having to wait for the resumption, and you know, da da da da da.
So, solid, solid move today. I didn't capitalize on it as well as I could have, but green is good.
I'll live to trade another day. I'll be back at it, streaming first thing tomorrow morning.
So, a quick recap breaking down those two stocks, FRTT and PLSM, with a couple other stocks up today as well. So, good to see, and I'll be back at it, streaming tomorrow at 7:00 a.m. So, I'll see you guys there.
And I'll remind you, as always, that trading is risky, and my results aren't typical, so manage your risk and practice in the simulator before you ever put real money on the line. With that, I'll see you guys bright and early tomorrow morning.