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:
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.
$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 $BTX, see both charts below.
($BTX)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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