346% Short Squeeze on Chinese Stock with No News! transcript

What's up, everyone? All right, in today's episode, I'm going to break down my trades from the morning. I traded two stocks. I'm green on one, I'm red on the other. Today was a little tricky, and part of that was because we had a stock that was the leading gapper by far, and everyone was focusing on it, but it only provided a couple of good opportunities. And so, while I did make money on it on those little opportunities, the rest of the time it was not worthy of trading.

And yet, because it was the leading gainer, people, I think, kept trading it, and they overtraded. They probably gave back profit. A lot of people probably red on it, because it was very, very choppy, and then it would go up for like two candles. Then it was very, very choppy, then it would go up again for two candles. So, if you miss those two candles and only trade the chop, you're red. If you got the candles, then all right, you did okay.

So, I'll break down my trades on that one, but because that stock was leading in terms of leading percentage gainer in the entire market, it made it so anything else that started to pop up was kind of in the shadow of that big move. And so, unfortunately, what ended up happening was we had a number of round trips. Stocks started to pop up and got slammed right back down, because all eyes were on the leading gainer. So, I ended up being red on one of those stocks that popped up and reversed.

There were a couple others that I avoided, but the one that I traded I thought looked good, and well, I guess I was wrong. And you know what? Maybe it wasn't just that I was wrong. It might have worked well on another day when there wasn't a leading gainer that everyone was focusing on. But today, all eyes were on, as you can see right there, LHSW. It's got 58 million shares of volume right now. It's currently up 212%.

Now, it peaked, if we scroll back on this little bit, let's see. We were up as much as Uh let's see, the peak was 346% today. It's pretty impressive. You can see this descending or ascending resistance line that I've got drawn right there that kind of held us up a little bit. We've got room to the 200 moving average still. It's a somewhat recent reverse split Chinese companies, you can see right here. Um and you know, again, al- although I traded it and made some money on it up $9,157.59, I peaked on it probably at 12 grand, gave back a little off the top.

And it wasn't super easy. And then the other one was GMEX. So, let's go back to the beginning of the day. So, when I sat down this morning, I wasn't surprised to see Z C M D on the top of the scans or near the top of the scans. This was a stock that was on the watch list um from Sunday night, which I had uploaded, but I had said I really didn't think it was going to work. I mean, I would watch it, but I didn't think it was going to work because unfortunately um it had already made such a big move, but then pulled back a a bit too much.

So, this one I was worried would kind of unwind back down. The second stock that was on my watch list was F X H O. And I sort of felt the same way that in after hours on Friday or Thursday had made this big move, come back down, and you know, I just didn't know if it was going to be something we could trade. Well, it ended up squeezing up in the pre-market session here, but it wasn't able to get back above 28. And by the time I was sitting down at about 7:00 a.m., it was coming back down, a little too expensive, a little too risky.

So, no trades on that one. But we did have L H S W, which was already on the scans. Um and this one, you know, it had popped up after hours, pulled back, popped up, and then pulled back again. And it popped up pre-market, and then popped up again really nicely right there at 7:00 a.m. Now, this morning, this this pop right here was right at 7:00, as you could see, and I missed that trade. I I was I didn't I didn't expect that amount of volume at 7:00 a.m.

Uh in any case, I missed that whole move. It ends up pulling back, comes back up, and then right at this moment as it pops up, there's another stock that pops up on the scan at 8:30, and it's GMEX. And so, as GMEX pops up, this drops, which sort of reaffirms that eyes were moving to GMEX as it squeezed from four up to five to six to seven to eight to nine nearly to $10 a share, and then came all the way back down. I was green on it, and I gave back the profit and went red on it, and at that point I said, "All right, well, enough's enough." I was kind of surprised this didn't hold up better.

We had this headline right here, acquire letter of interest to acquire stake in California Robotics AI company, AI robots, I don't know. It seemed to me like we're in the right market for a headline like that to perform pretty well, and yes, we got that big rally up, and then it pulls back, and then flushes. Pops back up. Is it going to get back above VWAP? It tries, and it can't, and it unwinds. And so, these were, you know, areas where I kept thinking we were going to get the curl, we were going to get the curl, and it kept not happening, and then are we going to get the curl, and it kept not happening, and then finally, it just broke down, and it was over.

So, a little disappointing there, um for sure. It's now come all the way back down to barely even being up today. It's only up 2% on news. Uh but, you know, unfortunately, there was another stock that was in the spotlight. Uh we also had KIDZ that popped up, Kids. It's a cheaper stock, not a big fan of it, doesn't usually trade very well. Went from 70 cents to $1.50. Nice 100% move, but no trades on that for me. We also had Lucy, Innovative Eyewear, um cutting-edge eyewear.

This stuff is, you know, crazy, you guys. It's You wouldn't believe what they're doing with glasses these days. So, goes up, but this stock, it never really does well, to be honest. It pops up, it sells off. Uh it's below the 200 moving average. I really wasn't interested in that one. And so then when suddenly G M E X hit the scanner, I was like, "Okay, well, this one at least is, you know, kind of on theme." But yeah, the day was a bit scattered.

You see there's volume across the board on a number of different stocks. Um, but none of them, other than L H S W, were, um, you know, really held up super well. So on this one, where did I take my trade? The only trade that I took, boom, right there on that candle. So the break of this level was what I was looking for, and that was the one trade that I took. Um, you know, kind of been watching it go sideways, G M E X was watching it here, but then G M E X popped up, it sold off.

Right here, I almost was like and then G M E X hit the scanner, and I switched my focus, as probably many traders did. But then this sold off, came back to support, held that level, and then it starts to pull away right here, and I was like, "Okay, here we go." So boom, we get that squeeze from five to six, 550 to six, to 650, to seven, up to 750. This pullback, I was like really hoping we would keep going, but ended up unwinding and coming back down.

Was wondering right in here if we were going to rally back through seven, back up to 750 for a squeeze in the open. It couldn't do it, and perhaps, you know, one indicator, we had this, um, ascending resistance trend line kind of right in here. Sort of broke through it, then we were back under it, right, a little resistance at that level. So today was a little tricky, um, but, you know, a small green day, and that's kind of what this month has been, small green days so far.

Uh, Wednesday I was up about 8,000, Friday I was up about 8,000. Uh, sorry, Wednesday and Thursday, no trades on Friday, market was closed. Uh, and now Monday, you know, another $8,000 day. So kind of chipping away here, working on building a cushion, uh, and slow and steady's the way to go. I'm not I'm trying not to overtrade, wait for good quality setups, and I might not be right on all of them, you know, today I was sort of 50/50, but, um, but at least L H S W gave, uh, a decent trade and so that was that was worth waiting for.

Now, as a reminder, our 4th of July sales are ending tomorrow at midnight. So, if you haven't already checked them out, come on over to warriortrading.com, check them out. All new members will get access to this software right here when you become a Warrior Pro member. You'll get access to these charts, scanners, newsfeed for 90 days. You'll also get access to our simulator right here for 90 days. Shift one, you want to jump in, you want to jump out, you can actively trade, you can monitor your performance, you go over to let's see, let me open this, I'll make it a little bit bigger.

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I jump in, I jump out and, you know, lose between the spread. But this is the place for you to practice the new strategies you're learning. It's a safe environment. This is what we want you to do. Prove you can make money in the sim before putting real money in the on the line. So, and as part of a warrior as part of your Warrior Pro membership, you have access to all of these classes that you can go through and so you can actually learn the ins and outs of the strategy that I'm trading every single day.

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