As the market slowly heats back up we should see the volatility and wild action every trader lives for and craves.

But as traders, we should also count our blessings that we’ve been given a short break after an extended grind. Those long-hour days glued to the screens watching ten tickers can be tiring.

And we should also enjoy the freedoms trading gives.  Five years ago, working a job I was tired of at 28 years old, I promised myself that by 30 I’d never work a full time gig again.

I’m no trading millionaire, yet. But I’ve found a way to achieve freedom balancing trading with freelance work to live a better life.

From Sunday I’ll be travelling the world for the next year, starting in Portugal surfing, I’ll keep you posted on how it goes and probably include a few snaps on this blog. Hopefully I’ll get to meet a few of you, too.

In terms of the market, I see a few themes, starting with:

Gapper Heaven:
In the final days before travelling abroad, I’m back at my parents, which renders me closely to the negative stereotype of being a short seller living in my mom’s basement.

That said, basement short-selling has been somewhat profitable, if you’re shorting the morning gappers this month.

For proof, see: $GBS, $PSTV $IPHA $OMQS $APOP $IMPL and $RNXT, which is basically nearly all of the stocks that opened around 25% up or more at 9:30 for a first green day.

The paradox is that a lot of these tickers are low-floats with limited trading volume history. In a typical market, I’d say almost all were avoids, but it’s just the trend right now that gappers fail.

Potential Breakouts:
$AEHR and $MTRT are both stocks with strong dailies and great range. I’m watching to see if or how they break out to the long side.
What most interests me is $CLOV, a break out which I took short on Wednesday. Stephen, you must be mad! Why are you shorting the breakout of a former runner with huge range? Well, because it reminded me of $BTX, see both charts below.

I tried to long $BTX countless time for ‘the big bounce’ which never came. I wasn’t the only one, there were a lot of decent long traders looking for big upside on this. And why not? It has a lowish float around 20 mill, no terrible dilution (which is subjective I admit), and a lot of cash in reserves, currently 26 month’s worth to be precise.

If $BTX can’t bounce then why would $CLOV in a weaker market? It’s not a rhetorical question I’m genuinely curious, which is why I took the short Tuesday afternoon after it ramped.

$CLOV is a significantly heavier stock, with a 200 million float and a lot of dilution to boot. I haven’t researched either,  in terms of company outlook, although I do see $CLOV has revenue, which could be a differentiator.

I still think this short was front-side and extremely aggressive, I covered the dip, it’s more of a learning trade for me and I’m still not sure if it’s even a great trade.

NFTs continue to stumble
$BBIG had a late surge into the close on Tuesday, Sept 8, in what looks like a bit of a short-squeeze, but otherwise there has been limited movement in the sector. That said, there’s no way I’m writing it off yet – keeping a close eye on $BBIG and $TKAT, as well as: $DLPN, $ZKIN $CIDM and $HOFV

Otherwise, that’s a wrap, I’ll see you over on YouTube to round-up the best shorts of the week on Friday here. My next blog will be coming to you from Portugal, good times, see you from there.

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