Nice weekend out in the Bahamas with a brief stop over in MIA!
Back at it Monday!
IU Month Winner: SpaceCowboy
Light scan and thoughts tonight as I am traveling — not the best set up to record.
The biggest thing I want to talk about today was something I shared this week on Twitter from my buddy Lance.
THE “RIGHT” SIDE OF THE V: such a powerful concept that many traders don’t conceptually understand. Just bc prices are same, doesn’t mean the e(v) in each moment is the same. Same prices on same chart can have DRASTICALLY DIFFERENT E(V)! (1/4) pic.twitter.com/kiSdYV7U3R
— Lance Breitstein (@TheOneLanceB) March 29, 2022
Where is most of your risk?
What gives you better odds?
How often do you exhaust out on the front side of the move and miss the unwind because you stop out.
Think about this on every trade you make whether it be long or short — what side of the V are you on?
If you’re aggressive too early on the wrong side — this is where most your avoidable losses will come from.
This small change can save you a ton of headaches — it’s the same concept I use in relation to the lines I give.
Video Scan and Game Plan
Stocks to Watch
AMC I think whatever outlier options event happened the last two weeks has passed – likely some players bent shorting calls forced to the market to hedge creating the secondary action we saw. That said – if the trade has unwound the liquidity is going to change BIG time – start thinking bigger picture vs. anticipating/trading more aggressively – can easily get in trouble when the liquidity changes and you’re over sized vs. the tape. Based on Friday action (obviously sympathy to GME) I think a lot of option traders got blown out and we see the slow steady pressure return.
MULN decent squeeze out into the close on Friday – hopeful for any good pops but $2.80s remains that key area where it may want to test, re-test, and re-test again before the ultimate fade off. I see all big moves as opportunities to fade if things are sideways and holding cautious holding size as this clearly is very responsive to any headline/PR (until they use it for their ultimate exit). Been holding small core from the blow off day – but hopeful for gap and stuff opportunity.
HYMC higher better looking for continued fade – another one that I believe longs have sufficiently been buried on the wrong side for the ‘long term’ and a slow process back to where it came from. Headlines and upticks are welcome but looking for failed follow through action to fade.
Failed Follow Through:
IMTE continues to go – has now tripled near term nothing to step in front but waiting for the day that it has 5-10 million shares and they blow out a bunch of paper – just has that feeling like they’re getting ready to do the normal liquidation play. Zero reason to step in front and zero interest until serious volume.
Continuation:
TKAT watch dips vs. $3.50s – see if continuation seems like volume came back into NFT’s
TISI break out – we could have a really nice squeeze out / blow off move. Watching for all dips that hold once it speeds up I’d just thoughts for back side.
DLPN another one of the NFT names – watch dips if they start to absorb next few days.
BFRI feels like the BKKT set up where they’ve been soaking maybe throw a few PRs and squeeze it out.
HTCR finally got rollin’ $3 was the big level we talked about.
Staying Familiar:
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