Transcription
What's up everyone? All right, in today's episode I'm going to break down my trades from the morning. I hit the ground running today. We had a stock that squeezed up over 350% on the news of a reverse merger. This is an interesting catalyst and it's actually very similar to what we had yesterday on Vee E. V ended up going up yesterday to a high of over $40 a share from $4 to $40 in one day. That's incredible.
So today when we had another stock with similar catalyst, you can bet that buyers are ready to step up to the plate and short sellers were probably a little bit nervous. Now you might notice, wait a second, Russ, that almost looks like a red shirt. you would be mistaken because this of course is my green shirt. That's right. I found a loophole in the superstition cycle that I've been caught in like many of the greatest athletes of our generation. Yeah, I'm a bit superstitious. I throw salt over my shoulder if I spill it. I would never walk under a ladder. I would not break a mirror. And I would never under any circumstances wear a red shirt, which is why you can see I'm wearing my green shirt.
Now, this is something that I came up with. I just took a white paintbrush, well, I took a paintbrush, dipped it in white paint, and I wrote green shirt across the front, and I said, "Brilliant. I have just solved all of my problems in life with a simple stroke of a paintbrush." Now, I want to unlock this level of freedom and confidence for you, which is why the merch store at Warrior Trading now has green shirts available in all colors. You can get a green shirt in this shade color here. You can get a green shirt in blue. You can get a green shirt in black, a green shirt in white. It doesn't really matter. If you want a green shirt, you can have a green shirt. You can wear a green shirt every day of the week.
Now, I don't want you to think I'm making money selling t-shirts, cuz that's not really my thing. Which is why we've got a coupon code so you can buy the t-shirt at cost. I really just want to spread the good word that you no longer have to be burdened by the red shirt. We can be unburdened by what has been. All right? You see what I'm saying? So, link is in the description for your green shirt. Check it out.
Now, since this empowered me today to have such a great day, we should probably start looking at the stocks that I traded. All right, the leading gainer right now in the market, NXTC. Let's run that little intro. NXTC currently up 272%. It has pulled back a little bit off the top. Now, this had a high today of $12.30, but let's look at VE from yesterday. So, this one, let me just click auto here on my charts to scale it. This is unbelievable. So, when this first popped up yesterday, initially I was like, "Yeah, we've seen this stock a bunch of times. You make boats. Nobody cares, right? I mean, come on. H how much h Let's just be real. How much money is a boat company going to make? What are they going to do? AI for autopilot? I mean, there's just only I just felt there was only so much they could really do. But in the past, now that's in the past. And this is a stock VE that has popped up many times in the past and it never really does that well. but rolls over. Again, it's a boat company. What do you expect? So, you don't want your boat to roll over, but nonetheless, it's it's not one that's been able to do particularly well. So, we get this uh move on on um yesterday on Monday, and the catalyst was that the company was selling off the seemingly profitable boat business and they were doing a merger with another company which was going to bring the other company into the public space. And so this is called reverse merger. So for instance, just as an example, let's say Warrior Trading wants to go public. And there's two ways to go public. Well, three ways. You can do an IPO, a traditional IPO where you work with an underwriter, a big bank like Goldman Sachs or, you know, whatever. And that bank basically comes to you and says, "Warrior, you know, we've looked at your balance sheet, looked at how much money you make, blah blah blah blah. This is how much we're going to give you for all of the stock that you want to sell." So we're going to give you, you know, a billion dollars, whatever. That'd be amazing, right? So they're going to give you here's the check. And then what Goldman Sachs does is they are the ones that actually go sell your shares to other investors and they sell them on the market and they make a profit by taking that risk. So they, you know, god forbid something terrible comes out in news between when they put their when they give you the money and and then actually the IPO, that could be a problem. So they take risk, they get compensated for their risk. They get compensated very well. The second way a company can go public is through a special special purpose acquisition company, a spa. These were very popular during 2021, 2022. Trump Media went public through a spa. And a special purpose acquisition company is a shell company. And everyone that buys into the shell company as an investor buys in at $10 a share. So if the spa, the special purpose acquisition company, raises $und00 million, they can now use that money or they raise a billion, whatever, to go find a privately held company, buy it, and then merge it into the spa and do a name change. And then just like that, that company is now a publicly traded company. And doing a reverse merger is the third way, and it's very similar. So, a publicly traded company that maybe isn't particularly profitable can be approached or could approach a privately held company and say, you know, the privately held company usually says, "We want to go public and we want to do a merger with you." And then we they do basically a swap. And so the publicly traded company sometimes will sell off their their profitable business to a private entity and then the other private company becomes publicly traded and they do a simple change and a name change. So that's what happened on or that's what's happening um in the case of um V uh EE and in the case of NXTC that's the same headline announces a reverse merger with a privately held company in a $320 million deal.
So suddenly the stock squeezes up you know again because of the big move we saw yesterday. Unfortunately as awesome as this move was the bulk of it was early in the morning before 7 a.m. which is when most retail traders come online. You see, you know, that's a burst of volume. But 7 a.m. was uh let's see, right about here. And so, we already had this big move, this big rally up. It pulls back, it comes back up, dips down, drops, then it rallies up here. And so, right at 7 a.m., we had this pop. And I considered that to be a false breakout with the high of 840. And I thought, look, if this gets back over 840, I'm interested. And so later as it curls back up only a few minutes later at 8 7:15 I jumped in there for the break of 840 it goes to 9 almost immediately up to 950 as you can see up to 10 up to 1050 up to 11 up to 1150 up to 12. An incredible move. Locked up $19,000 of profit. But then it flushes back down. You end up getting this topping tail. And I never like a topping tail like that. It shows that while the stock squeezed, it ended up, you know, dropping back down. Uh, so it sells off, sort of goes sideways, comes up, another rejection there, and I didn't end up taking any more trades on it. You know, that was just one really good trade. Traded in the small account, traded in the big account for $19,000 of profit.
Then I broke the ice on JTI. This is a stock that popped up just for a moment. I jumped in and jumped out. I lost uh well, jumped in and jumped out. I lost $235 on it. Then the last stock I trade was UBXG. UBXG popped up this morning, pulled back, and I got in as it was curling back up, but I added to the position thinking it was going to squeeze through the high. Then it dropped down. I stopped out for a $1,700 loss. Then I got back in, and then I stopped out a second time. Then I got back in and I stopped out a third time. This thing just did not want to break through 11. Now, finally, as you can see here, it halted up, halted up a second time, broke through 11, and is now dropping back down. some tricky price action, but nonetheless, I'm sitting in the green. $13,200.70. I'd say that's a decent day. Yesterday was an $8,000 green day. So now 13,000 today. That's 20,000 plus on the week. So that puts me up a little over 90,000 on the month of July. 100,000 is the first goal. Then 200, 300, and 400. Last month I hit just under $600,000 between the small account and the big account. So, I'm looking to continue that momentum and have a solid month of July. And, you know, with this move that we had yesterday on VE, the move on NXTC today, uh, you know, it it feels like the market is still pretty warm. So, although I wasn't able to absolutely crush it today, I'm green. I'm grateful for that. And I will live to trade another day. So, with that brief recap, I will be back at it first thing tomorrow morning. Make sure you check out your green shirt with the link pinned at the top of the comments. and I will see you streaming at 7:00 a.m. tomorrow morning.