Malaysian Stock Goes Up 1,500% in 15-Minutes transcript

What's up, everyone? All right, in today's episode, we're going to talk about how a stock seemingly went up today over 1,500%. That's an unbelievable move. However, while it's true that it did put in this big move, the bigger context, if you zoom out, is that this is a stock that was halted at about $4 a share. It then was halted for several days. It resumed at 10 cents a share and squeezed up to $160. So, is that really a 1,500% return or is it a 75% drop over the course of, you know, a week?

Well, let's jump into the recap and start breaking it down. So MGN is technically the leading gainer today, but again, I think you have to take this one a little bit with a grain of salt because of the fact that it was halted at about $4 a share and then resumed at 10. Sadly, those types of halts are not completely uncommon in the biotech space when you have a biotech company that's working on a very specific um you know type of disease and then they have really poor clinical trial results.

But this is not a biotech company. This is a foreign listed security. It's a Malaysian stock. It's got a tiny float, a tiny market cap. And you know essentially this is one of those companies that the stock trades very thinly. It rarely has any volume at all but you know periodically we will see sort of a surge of attention as traders jump onto it. So what we ended up having here on this as you could see this morning is this sudden rally which you know I I would say really was quite unexpected.

So, we get this move right here from about 10 cents a share and it goes from 10 to 15 to 27 cents. And that's when I first saw it on the scanners when it was at about 27 cents a share. Now, typically, you know, I'm not really interested in trading penny stocks, but the market was so slow today. This is the whole scan starting at 4 a.m. ACCL pops up at 4 a.m., sells off. You can see that chart right there. I'll adjust this a little bit for you.

So, we got that pop on ACCL. Nothing really that exciting. Then we have YMAT. YMAT pops up 4 a.m. Chinese stock. No news. Sells off. All right. There's nothing to trade there. We have FGL. This is a stock that's also Malaysian. Pops up at 4:00 a.m. sells off. So these pops are kind of a trap. They squeeze up on very light volume. Some traders jump on, but then they come right back down. So there's there's they're not sustaining that move at all.

SU pops up. This is a um renewable energy solar company. Solar stocks don't go up two 300% in one day. They just they it's almost never happens. Even though the price of oil is uh elevated right now, which is a catalyst for renewable energy. You can see this is the USO, United States Oil Fund, uh at its highest level since July where we peaked all the way up here at 154. So, we're coming back up towards those levels um from actually June.

But nonetheless, the solar stocks don't usually do very well. So that one failed, LABT, this one popped up. Nah, not much there. Then we had Bif. BIAF. This is the stock that made a big move last week. However, you know, you had the first day, which wasn't that clean. Then day two, day three, all the way into day four continuation. Then it ends up selling off right here and bouncing back up. It's just a little bounce off the low with a headline that they've regained compliance.

Regaining compliance to me is just not that meaningful a catalyst. So, you know, I mean, it's like it just isn't that big of a deal. So, anyways, then we had TN which popped up and this was really interesting. TN dropped right here at 855 and it dropped right as MGN was starting to pop up. Um, yeah, it was it was almost Yeah, it was like almost right at that moment. So M and actually I'm sorry there was another penny stock that popped up just before um that oh I can't remember it now but um let's see there was TN AGRZ AGRZ started popping up at um 855 so that took attention off TN and then we had MGN hit the scanners and start squeezing up and so this is one of those moves that's kind of I mean it's kind of unreal to have a stock go from 10 cents a share all the way up flashing suddenly to $1.23.

Then if I zoom in on this, it drops back down here to a low of 43 and then it squeezes up to $159 right here and then it drops back down to 30. I would almost say this is an illusion of opportunity. There's not really opportunity here. This is so volatile and so brief that you could have been unrealized and not hit the sell button and it's gone. RML is another example of that. This is a stock today that squeezed up. We'll look at this on the 10-second chart as well.

And look at the chart. So the 10-second chart shows really clearly that there was no real volume behind the move up. But if you looked at it on a five minute chart, you might feel a little FOMO. Holy smokes, the stock went from 8 to 30, 40. But the volume tells the story. It did it on less than 50,000 shares of volume. There was no real liquidity. It's an illusion of opportunity, an illusion of hotness. And this is something we have to be very careful of when the market cools off.

Of course, we would love to be taking trades. We'd love to be capitalizing on a big move, but we don't want to fall into a trap where we buy something with low liquidity and we get stuck because then all of a sudden you turn a slow week into the biggest red week of the year. It can happen so quickly. So, this is how I approached today. I didn't expect to see any big opportunities. Didn't take any trades in the small account.

I didn't think the market would probably be worth it. And so, I just sat here waiting BIAF. I talked myself out of it because it's really not that strong of a daily chart. The relative volume is low. It doesn't meet my five pillars well enough. It only met three out of the five. I didn't think that was enough to take a trade. But we did have TN and TN popped up and when it first started moving, I thought, okay, we've got early repayment of a convertible note.

Not bad. It's a pretty low float stock. Uh, you know what? I'll take a stab on it. And so I got in this one as it was still squeezing higher right here in the middle of this move up. I'm going to show you that entry on a 10-second chart. Now, the only thing that was unfortunate about this trade, so let's see. So, I got in uh let's see. It was right here, right down here on that pullback. And I'll show you my position on it.

I bought 5,000 shares at 424 and I sold it at $436 for $620. Why only 5,000 shares? Well, I neglected to switch from my a traditional margin account to my retirement account when I first logged in this morning. I have a margin account at Lightseed. It doesn't have a lot of money in it and I typically don't trade in it. So, 5,000 shares was the most I could afford. I bought it and I was I wasn't able to add um well actually maybe I could have added more but in any case I bought it and immediately I got a notification because I have a limit to tell myself not to trade in that account.

Uh and so I got this notification. I realized oops I'm in the wrong account. So I didn't add. I sold the position. Then I switched over to my retirement account to potentially take more trades and there weren't any more setups. So today's a day where I made nothing in my retirement account. That's a bummer. I made $600 in my taxable account, which is fine. I mean, I'm trading, you know, the small account challenge is also in a taxable account.

Uh, but I would just prefer to, you know, consolidate the majority of my trading in tax-free accounts because it just makes more sense for me at this point. Nonetheless, um, that was my one trade on TN about 7 cents a share on, uh, what was it? Sorry, 12 cents a share on, um, 5,000 shares. So that was the profit. Uh a small little base hit. It pulls back here. Goes to this period of consolidation. It curls up again and there were a lot of big sellers here.

Came back to a perfect double top. Could I have taken a trade from about 4:30 back up to 450? I could have. And I just wasn't confident. And I said, you know, if you're not confident in this market, you better just wait. And I waited. And then right there at 6 at sorry 855, this starts dropping as that other penny stock start to pop up. So attention shifted very quickly now and then we got this big pop on MGN which now has remarkably 78 million shares of volume and you know granted it has bounced up today.

We've gotten a squeeze from 35 cents back up to 75 80 cents. So you know if you'd bought 50,000 shares of that down there on the lows I mean you could have actually had a pretty decent trade and I'm sure some did but I just typically don't find myself doing well in those lowerric stocks. So, in a cold market, I don't really want to venture outside my safe zone. It doesn't feel like the right time to do that. So, instead leading the way with patience, staying focused, and although I don't have much to show for this week, it is, as of right now, a small green week.

That's fine. And if this whole week just ends up being a bit of a miss, and we don't get much opportunity on Thursday or Friday, that's fine. Look, cold markets are like this. And when it heats up, it'll feel like someone turned on the light switch. All of a sudden, boom, we start seeing huge moves and it's like a night and day difference. It's almost like trading in two separate markets. It is the same market, but the sentiment is so vastly different.

The price action is also vastly different. And so, when it's hot, I find it so much easier to get in, get out, lock up profit. And when it's cold like this, the hardest part is having the discipline to sit on my hands and be patient and wait for the next hot streak. With that, I'll thank you guys for tuning in today and remind you as always that trading is risky and my results aren't typical. So, please manage your risk and always practice in a simulator before putting real money on the line.

I'll be back at it first thing tomorrow morning, streaming at 7:00