+500% Short Squeeze on Biotech Acquisition News transcript

What's up, everyone? Welcome to day 12 of my brand new small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today is the biggest green day so far in the challenge, and it's not because we had the biggest percentage gainer. We did have a stock that went up over 400%, which is solid, but during this challenge, we've seen percentage gainers that were bigger than that. The real difference is that I'm now at a point in the challenge where my account is larger, and I can take more shares, and when we get a 50-cent, $1 per share move, I'm making more money.

Now, a lot of the trades during these 12 days so far have been more than just your standard 15, 20-cent per share base hit. That's typically what I average in my large account over the course of years and years and years, about 15 cents per share. And that's because I take a lot of trades. I take a lot of starters. I take trades on stocks that I may not be 100% sure of, but I figure it's worth taking a stab at. Now, in the small account, I've taken a little bit of a different approach.

I haven't wanted to just take a lot of stabs. I I suppose part of it is because of this process where I give you the review of each trade. So, if I end up taking like 15 or 20 trades, it it becomes a lot to review in the recap, especially if they're just break-even trades. So, to kind of simplify the recaps and also really just to focus on growing the account the most consistent way that I can, I'm focusing on setups that really, I think, have the potential to go up at least 50 cents a share, and we saw more than that today.

We had a stock that ended up going for about $9 a share all the way up to 18 bucks. That's a 100% move, and it happened very quickly. So, let's go ahead and jump on in the screen share and start breaking down day 12. As you know, all of the profits from these small account challenges gets donated to charity. We have now raised over $339,000, and every time you guys hit the thumbs-up on the episodes in the series, I add an extra dollar to how much we're donating.

So, today I wrote a check for $5,000 to the Children's Hospital of New Orleans. Thank you guys for hitting the thumbs-up on the episodes that we've had so far between uh day one and day 12. You've helped make this possible. So, the Manning Family Children's um Hospital in New Orleans is um the recipient of that $5,000 today. So, the goal is to donate to 50 children's hospitals across the United States by the end of this year.

We're now at 26 after today. So, today's day 12. We had our leading gainer this morning already up over 200%. In fact, when I broke down um my watchlist yesterday, which I always upload my watchlist on Sunday, I was going over the after-hours top gainers scanner, and I said UPC was up 168% in after-hours on Friday, and it's the stock to watch on Monday morning. And I said, most likely it's going to pop at 4:00 a.m., and that's exactly what happened. 4:00 a.m., boom, it goes from $8 all the way up to 10.

And I saw some people comment, you know, "Thanks, Ross. That was a great, you know, great stock to have on the watchlist. Ended up trading that move, and thank you so much." Well, I didn't trade it myself. Um I wasn't up at 4:00 a.m. But, if you traded it and you were able to manage your risk, good job. The The credit goes to you for taking that trade. So, now it ends up pulling back here, and I'm thinking it's, you know, I I don't know.

I I'm not very optimistic. In fact, during the rest of the pre-market session, we really didn't have anything that was that clean. We had this stock decoy, DCOY. This popped up early as well, made a really nice move, but then just kind of unwinds and sells off. So, that didn't give us any opportunity. We have TNMG, but this one's too cheap. I don't like trading these. We had LGLC or CL. This is a Chinese stock with no news.

I didn't really trust it. We had SKYQ continuing the trend from a couple days ago. If we look at the momentum scanner, there were a few other stocks hit the scans this morning, but none of them were that interesting. So, between the hours of 7:00 a.m. and 8:00 a.m., we had nothing. NNBR, 39 million share float, you guys know that's a little high for what I would go for. MNTS, 18 million share float, a history of popping and dropping.

CMND, same story. So, I didn't take any trades. No trades in my small account, no trades in my big account. And given the fact that I was red in my big account on Friday, I was, you know, hoping to be able to break the ice on something, but there was nothing to work with. That is until UPC curled back up to the volume weighted average price. And this is where we see that squeeze from $9 all the way up there to 18. All right, so let's back this out for 1 second.

So, I saw UPC on our running up scanner right here. Now, the running up scanner is searching for stocks right now in this very moment that are squeezing up, but they are not hitting a new high of day. They've just moved up quite a bit in the last few minutes. So, UPC, as soon as it hits the scanner, I know, well, I've already looked at the chart, but I know that it's not hitting high of day because otherwise it would be on my high of day scan.

It's on the running up scan, which means it earlier made a move high, pulled back, and now it's running up right here, and that means I'm going to look at the previous high and wonder if it can get a chance at retesting that level. So, at this point it's got about 11 million shares of volume, the relative volume is 30, it's up 240%, it has news from Friday, which was an acquisition. This stock meets all five pillars of stock selection.

Boom, boom, boom, boom. So, now I've got the chart up, I'm watching it. I don't mind that it's Chinese, it's moving, it's got a catalyst, and we get this first squeeze right here. Now, I'll tell you, I actually considered a trade on it a little bit earlier, and I'll show you where I was thinking about taking the trade. I'm just going to close this for a second. So, I was watching this um off of 820. And that level is back here a little bit.

I'm going to switch to the 1-minute chart, actually. So, 1-minute chart, 820. So, if you look right in here, this is where I was kind of watching it. We had this um stair-stepping down kind of price action where we were going lower. Then we pop up to 820, and then we come back down. Here we double bottom, sort of support, support, it holds, it curls back up, and as it's moving higher, right up to this level, I thought, maybe this is worth a shot from eight up to nine.

And here's why I didn't take the trade. Taking a trade below the volume-weighted average price means you're taking a trade when the bears or the sellers are in control. So, you're really swimming against the current. Can it work? It can, but it's riskier. And because today I had no cushion in my big account, hadn't taken any trades yet, and in fact, if you wanted to think about it big picture, I'm in a drawdown from Friday.

So, I'm already in a drawdown, my back's up against the wall a little bit. I don't want to lose more and go deeper into the drawdown. So, this is too risky a setup. In the small account, you know, I'm not in a drawdown, but I don't feel comfortable taking the risk. So, I don't take that trade at 820. Darn it, it goes all the way up to 915, and I thought, shoot. Well, I can't get in up here because now I've got 1 2 3 4 5 green candles in a row.

It pulls all the way back down to 850, and I think, well, it's typical. It rejected the VWAP. And then, this this shocked me. Because right here, this candle does a false breakout. First candle makes new high and flushes down. It's a higher volume red candle, and then it rips back up right here. And as it rips up, I'm like, holy smokes. All right, it's game time. And what are our levels from earlier?" So, the levels from earlier, we've got our pre-market high, which is up here at 12:22.

Okay, that's fair. And then we've got this level right here, which is 10:98 that I was watching. And so, I've got my platform. Uh let's see, let's back this up. So, I punch in the order, shift one, and I end up uh buying twice. I have to buy twice. And I end up filling right here at $9.85, and then I get more shares at $10. So, I chased it a little bit, and it ends up squeezing, and I sell it at $13 a share. That's a $3 per share win, and I'm up $3,400.

Amazing. So, biggest trade so far of the challenge, and a three-point win. I mean, that's awesome. Now, in fact, I left some money on the table cuz I sold as it came back down right here. It went all the way up to a high of 15.64, and I didn't sell any of it. I was just like riding the momentum, but it swept back down right here, and I probably sold on this candle right here. I didn't wait for it to come back up. I sold right back here as it, you know, right around 13.

So, nonetheless, I while I was up five grand for a moment, I was still very grateful to take this profit off the table. So, that was a really nice trade. It ends up pulling back, dipping back down, and then coming back up, and we get another trade a little bit later. So, when it comes back up here, I ended up getting back in, and I got back in right here. >> [sighs] >> I wanted to be in down here. It went without me, and I chased it.

I added a little too high, and I stopped out as it came back down. So, on that second trade, ended up giving back a little bit of profit that I had made on the first trade. Not ideal. I'd prefer not to do that, but that's what happened. So, I got in there, got out, and ended up finishing up $2,951.68. So, I gave back what was it? 400 off the top, and about $500 off the top. And so, now I'm finishing the day at $15,766 of cash in the account versus that $2,000 starting balance, the account's up almost 700%.

I've taken now 30 trades. I had two trades today, one winner, one loser. Only 50% accuracy today. My total accuracy over these 30 trades is now 76% with the average per gain trade being about $458. The account is growing. So, I'm going to continue growing it this week. I know you guys are interested in seeing me reset back to do another small account challenge, but I want to give you folks a little bit more time to watch me grow this account with Schwab before I do the reset.

So, for those of you guys who have been watching from the sidelines, right now, we've got a 4th of July sale going on here at Warrior Trading. So, come on over to the website, check it out. We've got special discounts on our Warrior Starter and our Warrior Pro memberships. So, this would be a great time to join, and once you become a member, then we'll see what's going to happen in early July for a new small account challenge.

All right. Now, as always, if you haven't checked out the 2-week trial, you can always give it a try before you become a full-fledged member. The 2-week trial is $20. That helps cover your market data cost to use this software right here for charting, scanning, breaking news, and where you can tune into my live chat room every morning, my audio-video broadcast. So, this morning, we can see kind of stalling out up here around 18, a couple of rejections.

So, it doesn't seem like it wants to go yet, but wouldn't surprise me if we do retest these levels. The only issue on this is that the 200 moving average is at 2344, so that's our nearest level of resistance. So, as always, manage your risk. I will see you guys back at it first thing tomorrow morning. My results are not typical. So, the best way for you to manage your risk is to practice in a simulator before you ever put real money on the line.

I'll see you guys streaming tomorrow at 7:00 a.m.