My Top 2 Stocks On Watch For Monday (Day Trading Watch List) transcript

What's up everyone? All right, in today's episode I'm going to break down my watch list for Monday morning and the game plan for the week ahead. We're coming to the end of the month of August. New month is right around the corner and this is a good opportunity to look back at what you did in August and where there's room for improvement cuz there's always room for improvement even for a trader like myself. So I'll spend a little time during this episode going over some of my ups and downs from August.

I had both um two of my biggest losing days of the entire year this month. Not great. Uh but and I also however had a couple of big winning days. So a little bit of a roller coaster. I would say that uh last week in particular I noticed that things really cooled off. I kind of got off the roller coaster uh which was good. I didn't have like you know, quite as much of a swing but things definitely were a little colder.

Uh so if we look at the charts here, we had this move CRE um last week. Uh it was I think Wednesday into Thursday and then Friday. And what was kind of interesting with this stock was that, you know, you had this really big move right here, which is awesome. We love to see that. A big squeeze and then that was kind of it. You know, this was just range bound. I mean, yeah, you could trade here and there was some opportunity but not a lot.

And then it was sideways and then kind of went lower and then sort of sideways and then a little bit lower. Um ARCON, another good example last week where we had one really big pop, which was impressive. It went from $3 to $9 a share and this isn't just like, you know, on 10,000 shares of volume. This is on, you know, 15 million shares by the time it came all the way back down. I mean, this was on a lot of volume but we got this big move and then it came right back down.

And so that was a little bit discouraging. I found that last week I struggled a little bit with uh uh being a little hesitant to jump in something just hitting the scanners cuz I didn't want to catch a round trip, but on the other hand, by the time it was really moving, being concerned that it was too extended and it wasn't going to hold up any longer. And those were those were valid concerns and was one of the reasons I didn't perform as well last week as um maybe I would have had the market been a little bit stronger.

So, this is the move on ARCON, for example. You know, an amazing squeeze and then way back down, false breakout, and just unwinding. So, I feel like what we really need are some strong catalysts. We need some really good headlines, and without that, when you have sort of a subpar headline, but traders are really eager to jump in, you'll get a big move, but ultimately the move is far greater than what the headline can support, and the price ends up coming back down through a combination of short selling, but also the company selling shares on the open market, which we get through direct offerings.

And we saw a few of them last week. Um you know, September will be the end of the quarter and the end of September. So, we may see more of them in September as companies try to boost up their balance sheet a little bit. Um but what we also may see are some companies that try to drive up their stock price a little bit before the end of the quarter just to make things look a little rosier. So, none of that is uncommon uh both directions certainly on a number of small cap um companies.

So, I expect we'll see some volatility in September, but it will be important to build a little bit of a cushion before I uh do anything too crazy. Now, if we look at the month of August, um let's see. We'll just look detailed and by day of the week, I really struggled on Fridays. And you might be wondering why I didn't post a recap on Friday. And you might be worrying that I got absolutely destroyed. Um well, I took one trade on Friday.

And as you can see here, I made $84.91, which it was pretty pathetic. Um I was red on it, it came back up, I got out green, and that was it. And I didn't take any more trades than that. So, there wasn't much to talk about on Friday. Um but last week was um the slowest week of of the month. Um So, you know, that's a little bit surprising having come off this really big um green week here on week four, but uh you know, it just is the way it is.

So, uh on the one hand, I'm pretty excited for Monday morning because Mondays have been uh the best day of the week uh through the month of August. Uh but on the other hand, because things were a little slower uh last week and on Friday, I don't want to get too excited because I don't think there's any certainty that um you know, we're going to get a great catalyst. But it does make sense why I would struggle a little bit a little bit on Fridays.

And it's that companies are less inclined to put out good headlines on a Friday. They're much more inclined to put out those good headlines earlier in the week. So, early in the week on a Monday or Tuesday, you're more likely to have headlines because then there's a couple of days where the market can react and continue to sort of drive the price higher. Putting out bad news is more common towards the end of the week in hopes that traders forget about it.

And in any case, the market's closed for the weekend, so they can't trade it. And then by Monday, you know, the dust has sort of settled. So, then combine that with sort of summertime trends of more traders taking vacation, um a little bit less volume in the market, even executives at companies not wanting to you know, put out news on Fridays if they're taking long weekends. And it makes for a little bit of a uh shift in volume weighted heavier to the front of the week.

So, you know, Monday morning, time to put the pedal to the metal. In theory, uh except that it was slow uh to finish on Friday. And in fact, our leading gainer by the end of the day on Friday, 44%, which is downright pathetic. And the after hours top gainer scanner, well, you had AEHL. So, AEHL made uh the biggest move, as you can see right here. And this one, um you know, is another one of these Chinese stocks. We get this big pop.

This is not the first time we've seen it. We've seen AEHL come up on the scanners a number of times. This one from 350 up to 450 to 5. I'm going to just uh back this up. So, um there we go. So, AEHL pops up on Friday. And because Friday had been such a slow day uh from pre-market to regular through regular hours, that this move at 4:00 p.m. really certainly got traders excited. From 350 up to 450, pulling back up to 5, pulling back up to 6.

And then we kind of went into this sideways consolidation, but it closed 8:00 p.m. right back up at those highs of the after hours session. Looking at the chart, I don't really feel FOMO on this. It's not like there were super super clear patterns that were just so clean and I missed it. Um but clearly it did go up 92%. What was the volume? Well, the volume was about 5 million shares. So, it was pretty light. It's got a 1.3 million share float, as you can see right there.

So, you know, it is a bit lighter on volume, um but it wouldn't surprise me at all if that continues into um a 4:00 a.m. pop on Monday morning. And then the question is where does it sustain and hold? And is it still the leading gapper and gainer in the market by 7:00 a.m. when most retail traders are coming online? If it is, then we'll look for continuation higher. And why don't we just analyze um this chart in a little bit more detail first.

So, looking at the daily chart on this one, um if we back back this up, we can see that it's had a couple of days with some volume. It's a company like many Chinese small caps that have done a number of reverse splits right here. Often, um you know, you get that pop following a reverse split. So, this is a stock that has had some big pops in the past. Also has had some pretty big red days. And the chart is is tough because the price keeps going lower and lower and lower, as is the case with a lot of these companies.

They do reverse splits, they do secondary offerings, and they just continue to basically capitalize on participants willing to trade it in the public markets, but the company is not um obviously at a level of um prosperity where they're able to sustain um even $1 a share for an extended period of time. Otherwise, they wouldn't have to do these splits. So, then you might say, "All right, well, you know, okay, so that's fine.

Well, well, what is the catalyst that was driving this higher?" And what you'll notice right here is that there is, in fact, no news. So, this went up for we don't know what reason. There is no news. You might speculate that there's got to be a reason. Someone somewhere must know something. Or maybe, you know, someone involved with this company decided to I don't know, do a kind of off-the-books stock promotion campaign.

Those happen. And next thing you know, you're getting WhatsApp messages and all these other, you know, social media alerts on the stock being the next big thing. That's all speculation cuz we don't really know why the price is going higher, but uh given that there is not a fundamental catalyst to support the move, we always have to kind of treat it uh or approach it with some skepticism. Now, uh we go into the filings, which I often will do on these.

There's a couple things that I'll check just to get a little bit of better sense of what's going on. Now, it's a foreign listed security, so they're not required to do quarterly filings. The latest filing is from the period that ended in September 30th of 2025. It was filed in January. That's the latest filing here in terms of financials. So, this is going to be one of those companies where, you know, a lot of time has gone by where we don't have clear insight into what's been going on.

You can see that it's a company that has a number of subsidiaries. As you can see, a number of them. So, a bit of a complex corporate structure there. Certainly not unusual. And so, what I typically look at All right, so that's that. So, here we go. So, typically what I look at for the 9 months ending and for the year ending. So, for the year ending, this was in the end of December of 2024. So, that's pretty old. So, if we look at the 9 months ending September 30th, you can see their net sales, their cost of goods sold, the gross the gross profit or loss.

And then you can see other income, loss before taxation, loss for the period year from the continuing operations, da da da. And so, what we see is a company that is losing money. Okay, well, that's not surprising. Of course, the stock price sort of reflects that. The The challenge with these types of companies is that then you have to ask yourself, well, how much cash they have on the balance sheet to sustain operating at a loss?

You know, how how many how many months can they run run like this? How many years can they run like this? So, then you got to find their balance sheet, which is another one of those tables. You could search for it, but I'm just going to scroll. So, this is a pretty long uh So, assets and liabilities. Um So, plant equipment, right of use assets, security deposits, notes receivable. Um You know, these are always tricky.

Uh and I'm surprised I'm just looking for um I'm I'm honestly look Oh, so cash is down here. I was look saying I'm looking for cash. Just cash. Like, how much actual cash do they have in a checking account? Loans receivables, you know, I we don't know how good those loans are. We don't know if those are loans that are going to be paid up or may end up, you know, defaulting. It's unknown. Um similarly with inventory, and not that that's a big one on this um company, but on some companies inventory is a big line item.

But, you know, how are they pricing the inventory on their balance sheet? Is it at, you know, the true market price or is it, you know, something else? So, in any case, with $1.9 million of cash, um they didn't have enough money to operate re- really even another um certainly 6 months. So, either some of this money came through or if we look more closely, oops, sorry, back here. Um we could check to see if there were other um Oh, I'm not logged in.

I'd have to log in. But, in any case, you could see if there were other um um events that took place such as a company raising money and selling shares. So, we see there's a prospectus for primary offering. This is um here. And this is they probably, my guess is um that they did some form of offering over the last 6 months, which gave them the financing to continue operations. All of that paints a picture of a company that suddenly has her stock price going up, uh which is very exciting for them, but um are in a position seemingly where they're in need of capital.

And so if this is an opportunity for and it likely would be for them to sell shares on the market because there's a decent amount of volume, then we may not see that they're able to sustain this price because they're going offset any of the buying by selling shares on the market. Um as would perhaps any institutional investors who um took stakes in the company through those offerings. So that's AEHL. Um could it continue going higher?

Could it be completely disconnected from its fundamental value in terms of its trading price? Sure, that can happen. Um Is it going to do something really exceptional? It's got a $160 uh 200 EMA. It's got a lot of room there, but I'm not going to hold my breath. So then the next one down is COOT with 27 million shares of volume. Um And uh that was all after hours, but it's a cheaper stock. So I'm not really crazy about that.

YDDL, NCRA. YDDL, um floats a little higher at 18 million shares. NCRA, this is one that we've traded before. Um You know, it it it's it's kind of hard to trust because it's had a few days back here on the daily chart where it's popped up and reversed. So my gut feeling for Monday is that probably there will be traders that jump in AEHL at 4:00 a.m. just to ride that momentum. Uh but I'm not sure that it's going to be able to sustain.

I'd be kind of surprised if it can, but for lack of anything else to trade, maybe it does. So AEHL definitely on the watch list. Um COOT for traders that like the cheaper stocks. You know, if it breaks through the um after hours high of 184, you can get a little bit of a move higher. It is up 55% with a 6.6 million share float. Um and then the others I'm not really interested in at all. So you've got two stocks on the watch list.

Uh both are foreign listed securities, Australian here uh for COT and Chinese for AEHL. My game plan is that I'm going to be sitting down around 6:45 and I'll be looking at the top gainers scanner right here and I'm really going to be ranking the top three or four leading gainers to decide which one of them most closely matches or meets my five pillars of stock selection. And based on those five pillars stock selection and which stock I think is the most obvious, I'll then be able to position myself to take a trade, potentially ride it um 7:00 a.m.

In my small account challenge, I'm getting very close to the finish line, which is exciting. Um I would, you know, love to be able to wrap that challenge up this week uh crossing over $100,000 and over half a million dollars in uh money raised and donated charity. By the way, these are the five pillars of stock selection here. Um but um I just want to make sure I continue to focus on high-quality setups and I want to recognize the market has been a little cooler the last week and it doesn't feel like it's the time to go out on a limb and do anything crazy.

So, I think this might end up being kind of a not like a, you know, photo finish, like I'm leaping through the finish line and taking a crazy trade. It's just going to kind of be like jogging through the finish and um just passing that line of $100,000. All right, so that's the game plan. Now, if you guys would like to watch over my shoulders I'm trading this week and I'd love if if you'd uh be interested in checking it out.

We've got two-week trial here at Warrior Trading with a link in the description and a link pinned to the top of the comments and during the trial you can use the same software that I'm using every single day for charting, scanning, breaking news, and our chat rooms, which include my live audio-video broadcast. So, make sure you guys check it out and I will see you first thing Monday morning streaming at 7:00 a.m. Reminder as always, trading is risky.

My results are not typical and there's no guarantee you'll find success whether you trade with me or you learn on your own. So, please manage your risk, take it slow, and always practice in a simulator before putting real money on the line. With that, I'll see you guys on Monday morning.