Day Trading Watch List for Monday! transcript

What's up everyone? All right, in today's episode, I'm going to break down my day trading watch list for Monday morning and the game plan for the week ahead. Last week was a relatively quiet week in the market for small cap traders. We had some opportunities on Monday, Tuesday, and Wednesday, but then it cooled off on Thursday and Friday. And in fact, as I was getting ready to put together my watch list, I uploaded and imported all my trades from last week.

And I was surprised and confused to see that Friday was a red day cuz I was saying to myself, I wasn't red on Friday. What are you talking about? There's something wrong with the metrics. And then I looked more closely and I remembered that, oh yeah, I was red on Friday. And you know what? That's exactly how you want to be. You want to let it be water under the bridge. Whether you're red or green, you put it behind you and you move forward.

So I was reminded that actually I was red on Friday. I' conveniently forgotten that, which is um I guess had me feeling fine this weekend. I I really completely put it out of mind. But the thing is here, I went red on Friday and I just stopped. I didn't keep fighting it. I didn't push hard. I just gave up, you know, I just said, "Look, it's not happening and it is what it is." And so, yeah, Friday was a red day, but because I didn't become emotionally compromised, I didn't spiral, and it wasn't a deep draw down like a couple of these red days back in August right here, uh, it's easy to kind of forget it.

So, in any event, when we look at the month of uh, September, it's been a very, very difficult month for for me personally. I'm sure there's other traders maybe who have done better. I was dealing with a little bit of diver diverse um dispersed uh attention. Uh I was diversifying my attention and it didn't pay off because I was focusing on my big account, my small account. You know, it's just all over the place. So, I had a number of days where I was not trading in the big account, focusing on the small account challenge.

And anyways, doesn't matter. It's it is what it is. But, uh last week was good at the beginning of the week and then cooled off Thursday and Friday. However, interestingly, on Friday, we ended up having another one of these Chinese stocks that squeezed up over 550%. Nearly 600% move here from the low of about $2 all the way up to 4 6 8 10 12 pulls back, goes up to about 14 $13 after hours, and then it sells off again.

It's a Chinese stock with no news. And so this has been really challenging for me because in the past when we've had a theme like the Bitcoin treasury strategy for instance when a company would come out with a headline of a Bitcoin treasury strategy and it was a big one like you know a billion dollars we we were almost you know very certain I was extremely confident that the stock would go up at least 100% often two 300% or more.

Right now, every Chinese stock that has no news that pops up, I can't be confident it's going to go up 2 3 400%. Yes, some of them are, but others are popping up and then going immediately right back down. Because what do we know about many of these Chinese small cap stocks? A number of these Chinese small cap stocks have been involved in WhatsApp and Telegram scam groups where they send out a mass alert telling all these people this is the next big thing.

There's news that's coming. It's, you know, hush hush. Don't tell anyone, but buy up as many shares as you can afford. Meanwhile, as people are buying, the insiders are dumping shares. And so, the stocks will have a short-term move up, but then they immediately give it all back and then some. So, when a stock starts popping up with no clear headline and it's Chinese, I'm skeptical. And yet, some of them have given us big moves.

It's just hard for me to have the conviction to take big size on every Chinese stock that pops up. In fact, it would be a mistake to do that. So, I didn't take any trades on MSGY on Friday. It was an 800,000 share float with over 1,700 times above average volume. I mean, it met the four of the five pillars for stock selection, but the fifth is a fresh news catalyst, and it didn't meet that. Now, you can see it did come up just shy of the 200 moving average on our daily chart.

So running into that level of um technical resistance here, but you can see this is a stock that has done these drops before. Mhm. So I'm, you know, very cautious on it. And you wouldn't blame shorts for being aggressive thinking this will reverse again. Um except that we have had instances where stocks like this halt up and then suddenly open halts up at five and and opens at 10 and it's up 100% in the halt. And as a short seller, that's your worst nightmare because there's nothing you could have done to manage your risk.

You're just you're in in a halt going up and you get a big gap up and you're stuck. So for Monday, should we be continuing to watch um Chinese small cap stocks? And I would say generally speaking, I'm not super interested in that, but um a couple of uh the moves from last week. So we had a 1,00% move last week. It was on a stock with a float of less than half a million shares. It was a recent reverse split. had a market cap of less than $5 million, which I think is important.

It did have news. It was priced between two and 10, had very high relative volume, and it wasn't a terrible history unlike some of these others. So, I was kind of thinking that, you know, we might get some more uh reverse splits. That was on Jagex, by the way, on Friday, or no, sorry, uh not Friday, but it was on I think it was Wednesday or Tuesday that we got this big move um and it did have news and we got this amazing squeeze.

I mean, this was unbelievable. This ended up actually going from $3 all the way up to $75 a share. It was like 2,000%. Just incredible. So, $65 a share. In any case, then we had Wheeler uh Real Estate Investment Trust that popped up as well. This one's a little harder to trust though because you'll get the daily chart and holy reverse split. They have done more splits, reverse splits, than I've ever seen. Well, probably Mullen would be the only one that's maybe worse.

And they've been now delisted. So, you know, I kind of was wondering if that was going to be a theme, recent reverse splits with a catalyst. That's a theme that I can wrap my head around a little bit better because you can see it's a recent reverse split and then you also see that it's got a fresh news catalyst and when you have a theme of that working, traders will be aggressive on the next one and there's a catalyst backing it.

Uh, but unfortunately that only gave us um, you know, those two moves and then that was kind of it. So also on Friday you can see GGY this one lowerric stock squeezing up in the after hour session. I am sure that traders will be watching this going into Monday morning early pre-market. It's a recent IPO sold off hard now bouncing back up. Has had a couple other days with high volume. The candles finish red so I'm not going to get married to it but it's something to pay attention to.

So we're going to start building the watch list here. So GYGY is on the list. Um, this is a US company. It's got a float of 5.7 million shares and on Friday began the squeeze. So, this is one that we should definitely uh pay attention to on Monday morning. All right. Now, I'll just click on this for one second. I just want to double check here. Um, Palo Alto. Okay, that's fine. AI powered sports performance technology company.

So, AI tech, that's the right sector to see uh this kind of move. So, all right, that's all fine. Okay, so we've got that one. Um, we have MGLD. This one was a buyout. See how the stock is trading exactly sideways. When a company is bought out, that's what happens. Um, I could maybe grab a screenshot of this for um just to use as a case study at some point just to show people what this look. This is a particularly compelling example of a buyout.

So, why would a stock trade exactly sideways? Company's been bought out. Their value has been determined. there's no more speculating on what it might be worth in the future. So, that one's off the off the radar. Uh INLF, this is one that began the move after hours on Thursday, continued into Friday. Uh not interested in trading those types of continuation setups in this market. There's other markets where those work better, but right now I'm not into it.

So, GYGY was the top gainer in the after hours session and CLRO was the second um top gain or the second leading gainer in the afterhour session. CLRO also has a very low float as you can see here. Less than a million shares, squeezed up, pulled back. It's a US company. Um, we have traded this one before with mixed results. There's times where it's worked well, but uh that hasn't always been the case. So, the way I would look at this is the daily chart is uh hard to ignore and you see this big move up and then sells off and then comes back up and then sells off.

So, if it comes back up again, I would just expect that it won't hold up very long. So, I would even look at this descending resistance level. That's an approximation, but if I get my drawing tool out here, trend limp mark. Um, so we're going to have resistance up around $10 almost certainly. And yet, though, at $5, that still could go up another 100%. So, I would put it on the list. Um, these are not necessarily five out of five in terms of um pillars of stock selection, but they're worth consideration.

And the float on this one was 893,000 shares. So this is a quite quite a bit of a lower float here than uh GYGY. And I think that's significant. You know, you've got a lower float with the same amount of demand, same amount of shares. This one's going to move more. Both have 10 million shares of volume. That's demand, but one has a 1 million share float. The other has, let's round up to 8 million shares. Well, I would expect this to go up 10 times as much because same demand, less supply.

So this is the supply and then the demand would be in the volume. All right. So, we'll keep an eye on CLRO. Uh, these are good opportunities for those of you guys that are up early like 4:00 a.m. 56 a.m. by 7:00 a.m. Whether or not they're still in play is another question. So, as I sit down tomorrow morning around 7:00 a.m., 6:45 7 what I'm going to be looking at is this top gainer scanner right here to see what is leading in terms of the momentum.

And then I check on the stock. I look at the float. I look at the price. I check the relative volume. I check to see the country of origin and if there's any catalyst. And then once I've done all of that, I begin actually deciding, well, you know, is the daily chart decent? Is there 200 moving average resistance? And if that's all fine, then I'm looking for my specific entry on the intraday time frame and usually looking at the one minute chart.

So, this is where I start looking for pullback patterns. And if we look back at MS uh GY here, you had pullback, pullback, pullback, pullback, rallied up into the halt. Then you get a dip, a little bit of a pop. Then it kind of goes sideways, pulls back a little bit, dips down for a while. Then we start to base out here, flatlining, curling up a little bit into after hours, but not pulling away, and then suddenly that rip back up, little pullback, and a squeeze.

And I always find it interesting when the move to the new high is on lighter volume than the initial breakout. That's a divergence. Increasing price, declining volume. Typically, that says to me that this will not sustain these levels and it did end up unwinding. Nonetheless, the one minute chart is where I'm typically looking for those entries. And for those of you guys who have been tuning in on YouTube, if you would like to watch over my shoulder as I'm trading, you should check out our twoe trial.

It's a a two-eek trial that gives you access to this same software right here for charting, scanning, and breaking news. and also give you access to my broadcast and a selection of my course material classes from the courses so you can learn a little bit more about the strategy that I'm trading every single day. It's a m a momentum based strategy where I'm looking for stocks that are already moving and look to jump on a pullback to benefit from the trend continuing higher.

So that's the game plan for Monday morning. We've got gyro MSGY. I don't think that's really going to be in play. I mean, I I could be wrong and if it does start to curl, I'd be looking back towards 1273, but we know the 200 is not too far away. It's up at 15. So, that just be aware of that nearby resistance level. So, I'll remind you as always that trading is risky. My results aren't typical. And of course, 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 I'll see you back here streaming from members of Warrior Trading at least tomorrow morning at 7