The Biggest Squeeze on Wall Street transcript

all right everyone so in today's episode we're going to do a deep dive into vvpr this stock ended up squeezing up well gosh at the open it was gapping up 287 and it squeezed even higher as the day went on this was the the leading Gap in the entire stock market today okay so it had news it had a catalyst and that's what brought in the momentum that's what brought in the volume and that's what sent this stock from about a150 all the way up to over $7 a share all right these are huge moves my goal for you is that by watching these case studies you're able to better understand the Dynamics of how these stocks trade so the next time we have a stock that pops up like this you'll be able to capitalize on it perhaps better than you were able to today because here's the thing about the market these patterns repeat themselves we see it again and again and again so much so that there is a strategy designed around trading these types of stocks which is a strategy of course that I'm trading every single day all right so let's start high level and then we'll get zoomed in on um each of my trades from today so this is a case study on vvpr and I always like to start the same way which is step one first I have to find the stock so vvpr as you can see here is on my top gainers scanner this is a stock scanner that is searching the entire stock market for stocks over 50 cents a share so that's just the minimum minimum criteria 50 cents a share if the stock is over 50 cents a share and sorry it's up at least 4% it's going to be up it's going to be on this uh scanner so those are the minimum criteria and vvpr of course met both of those criteria so because it's the leading percentage Gainer there's a lot of traders who just you know sit down each morning and they look at the scan and they're looking at the top you know three or four gainers so vvpr ainc xti and I traded all three of these I also traded adtx um and a couple others I didn't trade pick I didn't trade this one I didn't trade this one which I can talk about uh in I can explain why in a second but uh but nonetheless most Traders sit down and look at the leading gainers each day so once vvpr was the leading Gainer and once it was up over 109% it was the leading Gainer at that point I knew it was a stock that was going to get a lot of attention now between being being up 4% and being up 100% it's a little lower on the scan maybe down here but starting to move up so that's usually when I first see uh these types of stocks so what I was actually looking at uh this morning at about 8:15 was my uh small cap High a day momentum scanner this is a scanner that's kind of like radar it's searching the market in real time for stocks that are moving and when a stock is hitting a new high as long as it meets my criteria it will give me an alert and includes an audio alert so I'll hear oh my gosh okay there's something moving I better come over and look at what that is you know especially if I'm sort of focusing on something else at that moment so when vvpr first hit my scanner it was about 8:15 a.m. we'll go all the way back here to the beginning of this move um so way back here all of a sudden this thing pops up uh this was this about 819 started to pop up it it pops up here it squeezes up to 240 it does a little pullback and it pushes all the way up to three now there was a problem with the chart when I first pulled up the chart so Step One is figuring out what what the you know figuring out there's a stock even moving and that's using the scanners step two is trying to understand the Catalyst and I saw the news desk had a post about a merger agreement so I was like okay we've got a Catalyst on this so then the next step is analyzing the chart and I check first the daily chart now in this stock we had a problem which is that the 200 moving average was right at $3 $3 a share right here so this I felt would be resistance for the stock and it's that is typically the case so as it started to squeeze up that was the first thing I was looking at I was like well we've got the 200 right there it's going to block this move so on my first trade uh and as I was pulling it up I saw it come up to three and I was like I'm not going to buy it here this is like basically right where the 200 moving average is on the daily chart it drops all the way back down to 217 on pretty high selling volume and I was like hm shoot all right well I don't know maybe this one's all all done but it kind of starts to curl right here up to 260 up to 270 and it comes up here to about 289 it pulls back and right here I said you know what I'm going to take a trade on this I feel like at this point it looks like it has sort of reset and it's got the potential to get through $3 so let's see if it can do it there was some resistance at three it hits 305 and it pulls back so on my first trade I actually lost on my first trade on it I got in and I got back out for a small loss it was about $200 loss it drops down it comes back up here and I got right back in I was like look it hey you take a loss you know you fall off the horse you get back on so I got back in here and it goes to 320 and I'm like good and then it pops here up to a high of three let's see 330 and then it flushes 297 so I took some profit I got out it was a small winner and then it starts to pull away again and I was like all right I'm going to get back in here at 330 it goes up to 330 340 3 50 and and squeezes here up to 390 then it goes now at this point I'm like what in the world is happening goes up to 4 420 it pulls back we get a nice dip and it surges right here so oh so it double tops here at about 420 it pulls back and then it pushes higher now the way I traded this so we ended up squeezing all the way up here to a high um as you'll see of about 560 this was our high of day so this was my strategy for today for today I said I'm going to start the day with a cap of 5,000 shares until I can make over a th000 bucks that's my first goal is to cross over $1,000 of profit so as I began the day I had my Max share size set at 5,000 and one share so I could take the max position of 5,000 shares and I said I'm going to keep it that way until I make 1,000 bucks and on my first TR I lost um 200 what it was like $280 or something like that so $270 something like that so first trade was red I'll start the line down here so first trade I went down 200 bucks second trade I made about 100 bucks okay not that exciting still red on the day third trade I made like 200 so I'm barely green on the day I haven't hit $1,000 of profit which is my first goal so a th000 is sort of the first goal uh and then on uh vbpr I got like a $300 winner and then I got you know $500 winner and then all of a sudden I was at ,100 so as soon as I crossed over $1,000 I increased my Max share size to 10,000 shares so I'm going to up the the share size right here and at this point I pretty quickly went from up 1100 to up 2200 to up 2800 to up 3,800 and to up to a peak of $4,800 now my daily goal is 5,000 so as soon as I got close to the Daily goal it just so happened that I kind of felt like um my winners were getting smaller and we were sort of um getting to a point where vvpr was pulling back and I ended up taking a couple more trades and giving back a little bit of profit here and finishing the day at uh 3,000 I think it was $3,200 right right right around here uh which is still a pretty good day a little bit off my Peak but still a pretty solid day and but it was actually at this point that I said let's reduce my share size back down to 5,000 shares I'm going to reduce it back down to 5,000 shares for the rest of the day now I still gave back some profit but it's a good thing that I reduced My Size because I would have given back a lot more so my share size kind of went like this so small size increasing size and then decreasing size towards the end of the day so that was my strategy now it played out pretty much perfectly I mean with the except ition that I gave back a little bit of profit but but that's bound to happen and that's okay and I it was manageable so my problem on vbpr was that we had some we it was kind of choppy you know we had this candle right here where we had this rejection we had um this candle right here where we came up to 305 and then we sort of flush back down which you know I just sort of thought we were going to punch through there but there were a lot of sellers there at 305 so we sort of had the first rejection another little rejection another rejection this rejection candle and then we squeeze up a little topping tail here and then we push higher nice bottoming tail but then we weren't able to pull away right here so we had resistance at about 420 it sells off it comes back up and I traded a couple times in here and I was just getting stopped out it dips back down it comes back up then it pulls away but not by a lot and then it comes back down again and then it sells off a bit more and this is where we can now connect uh this trend line right here from these two lows then it finally pushes up higher pulls back squeezes a little higher bigger rejection back up back down back up so this is where it started to get kind of choppy and I was like man I don't know I'm just I'm I'm not sure if I'm feeling it right now so that was um so that was pre-market which was you know the biggest move but even through this move it was easy to get chopped out and I did get stopped out a couple times and then it you know went right a moment later tops here pulls back and coming into the open I was like I don't know you know I'm really not sure if this is going to work so then look let's look at the price action right here at 544 we've got this big rejection candle and we've got another one right here so let's look at the 10-second chart at the open so we come into the open and it sells off and then it kind of curls back up right here so through here I was like okay it looks like we're going to break through 550 the pre-market high and look at what happens it goes to 5.49 and then Jack knce all the way down to like 480 and then it rallies back up it punches higher it drops down and and so I took this trade and I lost on it not a lot but with small size it was still a loss and then it kind of starts to pull away I got back in here it barely breaks it pulls back it kind of punches higher and I was just like what is going on with this stock then it pulls away here up to seven and I was like oh my gosh I missed that move then it goes sideways here it comes back up I try to get in for the break of seven I get stopped out at like 655 so stopped out again I was like wow this is getting a little obnoxious it comes back up flushes again it comes back up it flushes again it comes back up it flushes again it comes back up it flushes again it comes back up and holy smokes this thing rips to 760 and then dumps to $6 in an instant over a million shares of volume in that candle That Shook out a lot of Traders there were a lot of people that were buying off of support here for this final breakout and looking for that move higher and maybe some of them got out but probably not because it was very quick and then it Jack knives back down so I would say the moral of the story on this stock was that the easiest trades were at the beginning of the move the easiest trades right here were on the first leg of the move before macd crossed over and once macd crossed over you know even though it crossed again to the upside back here we never really it never got as clean as as it was right there you know yes this stretch was that was pretty nice um but it was just after this jack knife reversal so it was hard to trust and I didn't trade it well you know so it ends up squeezing up here to a high and then pulling back so you know the fact is I I honestly think that vvpr was a pretty uh difficult stock to trade in a lot of ways uh nice in the very First beginning of the move and that's where I did the best on it and then I just sort of started giving back profit on it now I ended up Switching gears and we had another stock that came up which was adtx adtx popped up hit the scans at about 450 right here it sold off it comes back up and I got in it at 450 right here and we got to move on this up to 560 so that was pretty nice that was a dollar a share on that move so that made up for giving back some profit on um on vvpr and then um and yeah I guess those were the two stocks that I traded uh that I did the best on but my first trade of the day and so here's my p&l 3200 on the day first trade of the day was on um xti second trade was on a NC and third trade was onnn so you know once these three trades were done not including zzo I was still only up like 300 bucks so I was like nope not going to increase my share size yet need to wait but once I got in on vvpr that put me over a th and then I started to scale up and from that point then I got adtx and then I got a small trade on uh C but it was a small loss so I'm a little bit you know I mean I gave back 1,600 off the top that's 30% it's a little more than I'd prefer uh but I'm glad I reduced my share size to mitigate the risk I got a little frustrated today and you know it's just it's it's it's frustrating it's frustrating when you have you know 3 four five times in a row where you get stopped out and then you watch the stock squeeze so I got a little frustrated and I think it's important for me to walk away and call it a day because like I said yesterday if you recall yesterday I gave back a little bit of profit off the top as well I was up about 6,000 and finished at 4,900 so 1,00 off the top and I felt a little annoyed about it but but you know now of course it's like well hey it's still like a $5,000 Green Day that's a solid green day and it doesn't take that long for me to you know get over giving back a little bit off the top because I'm still walking away with profit in my pocket what's very difficult is when you give back so much you go from green to Red you had something and now all of it is gone you have nothing you have a loss that is a big trigger for me and that's harder to get over it's harder to recover from that emotionally so today a day where I did give back a little more than than I'd like but I'm walking away in the green second day here of the month so starting a new month uh just about 5,000 yesterday 3,000 today so that's $88,000 in the green on the month two days in off to a good start averaging 4,000 a day so just need to keep it up and I'm going to keep uh continuing with the same strategy of starting with small size once I get up over a th leaning in today I actually thought I might never get to SI I might not get a chance to size up today and if it for vvpr I probably wouldn't have because on those first three trades I was only up a couple hundred bucks you know doesn't justify scaling up it's not happening and then finally we ended up getting one at 8:15 or so that started to move but um yesterday the window started earlier it started at 7:15 that was when that was the beginning of the big move yesterday was at 7:15 and by you know 8:30 I was already in great shape so today I was a little bit behind that schedule um which made the window a little bit smaller because I still knew coming up towards 10:00 a.m. that I'd have to ease off of share size and scale back down because if I took a big loss I wouldn't have time to recoup it so fortunately today um I mean well unfortunately I did still give back a little bit but I you know we we at least had a stock that popped up and gave us some action so vvpr still hanging out up 330% um that's great to see I'm I'm very happy with that now I didn't trade Pik uh this one unfortunately it made Big Move that started after hours and pre-market it was already sort of selling off so there was really no chart there for me to work with LW was on the scans a little too cheap at 85 cents also start after hours pre-market was selling off so no interest in that xti was the leading gapper pre-market when I sat down at about 7 a.m. it had just made this nice move but then start to form this head and shoulders pattern so it kind of looks like a ghost here here woo spooky so sort of you know pulling back there so anyways no trades on that um adtx this one's now up only 19% so it's pulled back a little bit czo first daily candle to make a new high I liked the idea of it um I tried to buy it at 1050 my order got rejected it halted up I tried to do a dip with 500 shares a little higher and lost 88 bucks so n nothing nothing really exciting there but whatever that's okay today was a green day and I'm going to live to trade another day so I'll be back at it first thing tomorrow morning the goal as I said at the beginning of the month is to try to build a cushion just like my goal at the beginning of the day is to try to build a cushion that's the same at the beginning of the month once I start to build a cushion then it feels like you know the wind's at my back I'm I'm kind of pointing the right direction and now I just have to maintain so getting the month off to a good start is always helpful now if you made a mistake and you're already read the month don't worry it's not too late to do a course correct you can still turn it around so what I would encourage is starting tomorrow by focusing on a whatever your daily goal is if it's a hundred bucks if it's a, bucks whatever your daily goal is if it's $10,000 probably in 10,000 but whatever your daily goal is I would first say start with smaller share size until you get about a quarter of that goal which is about what I'm doing right so you know I guess it's a little less than it's a fifth $1,000 versus my $55,000 daily goal but you know so if your daily goal is a th000 say with small size until you're up like 250 bucks and then once you're up 250 then it's like okay you know and I did that in like two trades all right now I can increase my share size now I'm getting comfortable but break the ice get comfortable first one of the mistakes I made a lot last month was I went in on my first trade with full size and the problem with doing that was that well of course the good side of doing that is if it was a winner I was like up to my daily goal in one trade but the downside was that I was losing Max loss in one trade if it went wrong you know with 105 20,000 shares I'd lose 20 cents I'd be down four grand and now all of a sudden I'm my daily loss is 5,000 Max loss so that was too big in a hot market like what we had in February it made sense to be more aggressive right out of the starting Gates but in a colder Market you got to be a little more conservative and at the beginning of the month it's important to build that cushion and so you got to be a little more conservative as you're doing that so I hope that is helpful for you again my goal with these um case studies is to present them in this way to help you better understand the Dynamics of these moves so you can capitalize on them better the next time you see them because we we keep seeing these stocks hitting the scanner and going up you know 75 100% and more so uh I'm sure that we will see something like this happen again this week I'm going to be streaming every single day for warrior Pro members you know I'm kind of uh rain or shine I show up whether it's a hot Market or cold Market but I show up I look for opportunity and um you know I I I trade the volatility so hopefully we have more of it this week I think we will given the what we've seen so far and I hope you guys are able to capitalize on it uh in your own trading so thanks as always for tuning in uh make sure you hit that thumbs up I hope you subscribe to the channel and I'll see you for my next upload real soon