FOMO market is here – what does that mean for you? Let’s do a quick review before anyone goes down a rabbit hole chasing/hoping for the next trade.
First off ….. TIME OUT! (Reminder needed)
Stop for a minute! Who cares what your friend made. Who cares what someone on Twitter made. Who cares what you missed out on. It is what it is and won’t help you make a trade tomorrow.
This is the most important time to focus on YOU and only YOU.
This is where people start to make silly decisions because they feel like they missed out. In reality, betting on the next black swan statistically is a bad bad bad idea! Yet most try to ‘hold’ the next one.
Remember, when this happens, NO ONE CALLS IT, NO ONE IS PREPARED !! But yet, right after, everyone has the NEXT one. Don’t fall for that but UNDERSTAND what it does for the market and how you can benefit!
We had a ton of thin movers last week. Tons of names ramp up one candle and fail. Others start to firm up and go. You saw how big NIR was and then MRAI from $1.20s to $2.40s (went over $3, but I wasn’t there anymore) and obviously CXAI (yes, I sold way too soon on that $1.4 long) or things like IONM etc. going wild AHs are all great things that take time to develop.
THIS IS IMPORTANT: If you chase ONE candle, your risk is it slams RIGHT back down. Can you make some good $$ chasing? Sure, for now – but how long will that last? And, if you chase a candle and it slams right back down, are you sized properly? For me, if I chase a thin candle then it’s a chase size that I am COMFORTABLE with it going RIGHT BACK to where it swiped up from. Otherwise, AVOID and wait for it to prove it wants to have a secondary move. Let a market develop more than just one candle – a good example was on MYSZ got pushed on an Elon tweet as a sympathy after 4 minutes of volume and no movement higher trade failed, and 10 minutes later, it slammed down.
Right now, my edge is move in, move out, move on. Let everyone else hold for a miracle.
As you’ve seen, I’ve been taking a lot of longs, lots of swings, and locking into any fast rips. For example, NIR – it’s fine to chase the big move lately, but if it rockets $2/share if you’re not locking in, is that smart? Sure, maybe not if it turns into the next CXAI after all my sells on that one look pretty funny at this point but HOW MANY WILL ACTUALLY DO THAT? Not many! So, you need to be content with taking the fast $$ and not over staying trying to catch the next XYZ right now.
This is something important to understand about the market right now. Most people are HOLDING waiting for next XYZ (CXAI etc) only to be disappointed. Most shorts are either afraid to start in or still treating it business as usual and getting chopped. Less sellers, more holders = shorts creating a market back and forth and we either get a squeeze or we don’t.
CXAI = LUCY = AI – WHERE HAVE YOU SEEN IT BEFORE?
Power of IU (Warnings and LIVE Discussions):
- CXAI Traps Identified $4.50 soak
- PTPI Traps Identified $5.50 soak
- CNSP Trap Identified $1.40 soak
Video Topics:
- Relax
- Flavor Of Day – Least Edge (Tape Flips)
- Wait 10 Minutes – Still Agree?
- Shorts Will Short (Only Sellers?)
- Longs Need To Be Convinced To Sell
- Next XYZ
- Chasing vs. Chasing Candles
- Dip And Rip Candles Tell The Story
- Stuff Moves vs. Soaks
Video Scan and Game Plan
Stocks to Watch
INPX really depends a bit on CXAI it’s like DWAC PHUN and MARK or USO and INDO IMPP HUSA back in the day. If the main name (index) keeps going the rest are forced to catch up. That said INPX likely dumping lots of paper and ends up going back to where it came from – just will take more time than you think. There is a good chance this gaps down .78-.82 range although I am HOPEFUL it pops over $.90-1 + again for failed follow through. That said, likely fades back to .30s in the next 2 weeks. Check how NCMI and the rest played out. It’s always a LITTLE bit after you give up or have intense focus on it that the ‘easier’ trade comes. Remember, the trade you are prepared for is likely everyone’s trade and if people are holding for the ‘next’ XYZ then it’ll last longer than you think – keep that in mind.
CNSP went to $4 AHs – wild move. Big squeezer off the $1.40 line and once again warning to avoid.
Failed Follow Through:
NIR I have minimal left sold most into the $2 rip as reminded but ideally holds up into open to sell rest and then -20-30% fade back. We’ll see.
SAI higher better and unwind – thinking like SMX here.
PTPI morning gap to fade but I am thinking if we fade off tomorrow and hold over all think Tues/Weds for T+2 and squeeze. Float is thin enough if there is a big enough buy in with minimal volume, could be decent rebound.
NVAX monitoring for failed follow through set up
SMX higher better for back side.
IDAI nice to catch on Friday – good example of #KnowWhatYouOwn we went over that they were about to raise at any moment. EFFECT was there. Does that mean it’s no brainer short? No, everyone who was doing the no brainer short was happy to break even I am sure — I like to know what I am trading but only fade the trade if there is a set up that supports the thesis NOT JUST BECAUSE IT’S AN OBVIOUS RAISE (I am writing this because it is the most popular question I get).
Continuation:
IONM sold some AHs – maybe goes a lil wild Monday looking to sell the rest and then back side fade it.
NOTE trend firming up $2.8x’s looking left was the level given nice steady grind.
HTGM I have sold some from swing idea given, as always anytime there is a ‘catalyst’ (in this current market anything on the calendar ahead is a catalyst it seems) things have been moving.
BGXX non stop so far from continuation scan all week. Watching for blow off opportunity.
OBLG another thin one, good opp Friday watch if $2.50s firms could do some thin circuits. If no one home and fails off would look for quiet fade.
Staying Familiar:
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