Worst Day of the Week... Friday 04/19/2024

Today's market overall is not good. But watch Ross cameron's video explain a few stocks that look promising, but are hard to trade for day traders.

0:00 all right everyone well we're going to
0:01 do a recap of what has been the worst
0:04 day of the week the worst day of the
0:07 week and it's a Friday that's never fun
0:10 so what happened today well this morning
0:14 when I first sat down a little after 7 I
0:17 noticed their leading gappers were
0:19 $rwod and $ZCMD these were the uh the two
0:24 leading gappers right now you can see
0:26 they're both up 50% um rwod was up
0:29 quite a if we look at the chart on this
0:32 this thing went up big time after hours
0:35 yesterday no sorry uh it was pre-market
0:38 pre-market this morning at 4:00 a.m. it
0:40 squeezes from like you know $7 yesterday
0:44 all the way up to 20 bucks it pulls back
0:47 and then goes up to $30 a share that is
0:50 an incredible move but it gave it all
0:54 back it was a head and shoulders pattern
0:57 almost perfectly so we would say that's
0:59 the that's the head that's the shoulder
1:01 and it came back down now it did curl
1:04 back up
1:05 pre-market but I you know unfortunately
1:08 this just was not trustworthy at best
1:11 what were you going to get a little
1:12 bounce off the low now if it had if it
1:15 had broken above volume weight average
1:17 price and proven it could hold over that
1:20 level well then we've got something to
1:22 work with but it couldn't and and even
1:25 if it did break over vwap to be honest
1:28 it still is dealing with the fact that
1:29 we had this Head and Shoulders pattern
1:31 so
1:32 rwod this was a special acquisition
1:35 company a spa special purpose
1:37 acquisition company uh was trading
1:38 sideways at $10 more or less and then
1:41 they had the news of the merger so the
1:44 merger news is what brought out uh that
1:46 was the Catalyst that brought the volume
1:47 in and created the volatility the and
1:49 the move but obviously it didn't hold up
1:51 all that well okay so that was our
1:53 leading gapper and still is today second
1:56 and I have no trades on this so didn't
1:58 like that one no trades second leading
2:00 gapper ZZ sorry
2:04 zcmd this one you know what I'm going to
2:07 say about it it's thickly traded the
2:09 move started after hours here it pulls
2:12 back and it hasn't been able to get back
2:14 to those after hour highs so ultimately
2:17 for me I mean I was watching it as it
2:19 had this resistance around three but I
2:21 wasn't ready to buy this break because
2:23 it was so thickly traded I didn't expect
2:25 it was going to make a big move and we
2:28 still in my opinion need to get over the
2:29 those pre-market highs to really look
2:31 interesting or after our highs and we
2:33 weren't able to do that so this one was
2:36 a no I said I I don't like it it doesn't
2:37 look good third leading gapper is nvfy
2:41 now nvfy hit our scanners at the open so
2:45 there were no trades on it no
2:46 opportunities pre-market but at the open
2:49 it kind of punched higher here what's
2:51 the Catalyst there's none there's no
2:54 catalyst so it squeezed up here on
2:58 100,000 shares of volume basically what
3:00 probably happened is you know some
3:02 Trader out there bought like 20,000
3:05 shares and it spiked up on this candle
3:07 and then some people are like oh wait
3:09 this thing's moving uh maybe someone
3:11 knows something I'm going to get in and
3:13 then people start buying it and then it
3:14 drops and then some people buy the dips
3:16 and next thing you know it's getting
3:18 volume and it sort of is has a life of
3:21 its own but it doesn't have a clear
3:23 Catalyst the daily chart is fine it's
3:26 over the 200 you know it's I guess a
3:28 stock that's made a big move in the past
3:31 the float is very low but spreads are
3:34 kind of big the volume's light it
3:36 doesn't have a catalyst that seems risky
3:39 no trades on that next one down
3:43 agba well wait a second they basically
3:46 put out the same exact news this morning
3:48 that they put out yesterday so same
3:51 headline and it goes up a little bit
3:53 more but it didn't really hold up super
3:56 well yesterday it rejected and came down
3:58 so what do we expect going to happen
4:00 today reject and come back down most
4:02 likely so no interest in that one for me
4:06 now I don't know how many of you have
4:07 seen my um recent episode here on Short
4:10 Selling but that may be one uh for you
4:12 to take a um take a peek at if you
4:14 haven't watched it already I've also got
4:16 this episode right here on um taxes how
4:19 Traders legally pay zero in taxes a
4:21 couple recent uploads from the week
4:23 anyways so I'll put those
4:25 there all right so um so anyways AG ba
4:30 although I could short it coming back
4:31 down um this one just is too cheap and
4:34 it's not something I'm interested in
4:35 Touching okay so that's a no well jeez
4:38 Louise we've already gone through the
4:40 top four gaps uh all right let's look at
4:43 well MRT we'll look at that quickly Gap
4:45 number five just took first place moving
4:48 up but again no Catalyst there's no news
4:52 there's no reason for it to be moving up
4:53 I don't trust it it's also got the 200
4:55 moving average nearby and now we have W
4:58 IA
5:01 so what do we say about this one this is
5:04 actually the stock on Wednesday that I
5:05 was up $10,000 on I wasn't able to keep
5:08 it all in my pocket but I did have a
5:10 nice day on it on Wednesday which was
5:12 day two continuation day one Tuesday was
5:14 nice too yesterday it was dead today
5:18 it's kind of bouncing up a little bit
5:21 and yet it's not that easy to trade so
5:24 let's get dialed in here we'll at the
5:25 10-second chart so pre-market I don't
5:29 know how many Traders were really paying
5:31 attention to this I mean if we look if
5:32 we go back we don't have to look at the
5:34 10sec to do that we'll look at the F
5:36 minute chart
5:37 here um we peaked on uh Wednesday
5:42 morning we pulled back we closed and
5:45 after hours had a high double
5:47 top uh and then we sort of pulled back
5:50 so Thursday was a selling day and here
5:54 went Friday kind of back down here and
5:55 when it started to pop up the first
5:57 thing I thought was well you know you've
5:58 got the 200 moving average here this
6:00 purple line so we're probably going to
6:02 have a little bit of resistance around
6:04 that level uh surprisingly it kind of
6:06 just blasted through that didn't really
6:08 stop there pretty much uh what it did
6:11 was right at the
6:13 open it started to squeeze up and it
6:16 does this little red to Green it goes up
6:18 to 610 pulls back up to 620 pulls back
6:22 punches to
6:24 647 drops to 610 620 goes back up to 647
6:29 pulls back busts through to 660 pulls
6:32 back punches through to 690 pulls back
6:35 quite a bit down here almost to 650
6:37 punches up higher so look at these
6:39 candles it's like one punch Higher One
6:42 Punch higher and then it's this
6:44 hesitation and the spreads are
6:46 bigger so we just dropped we popped
6:49 up I was tempted to punch it uh well I
6:55 was tempted to punch it right here at
6:56 620 and I was like I don't know the
6:58 spreads are kind of big I just think
6:59 it's too risky it goes up to 647 and I
7:01 was like wait wait don't just Chase it
7:04 it comes up here and I thought I don't
7:06 know so I pretended like I was like all
7:08 right let's let's say I just took that
7:09 trade and it goes up to
7:12 660 but it's only like 651 on the bid
7:15 I'm like realistically I'm up 4 cents a
7:17 share on 2500
7:19 shares it's like 100
7:21 bucks and then it flushes here down to
7:24 42 which is I would have stopped out I
7:26 would have gone red on it by 100 then it
7:29 comes back up and punches through 60 and
7:31 goes higher so the moral of the story
7:34 today is that this is the worst day of
7:36 the week because it's a no trade
7:39 day but this is actually a good day it's
7:42 good because this was the day where I
7:44 exercised that muscle of discipline I
7:47 maintained composure I said I don't like
7:51 the leading gapper I don't like the
7:53 second leading gapper I don't like the
7🈺 third leading or the fourth leading or
7:56 the fifth leading or the sixth leading
7:58 and wiissa was the that tempted me the
8:00 most but what I said to myself is it's a
8:03 bounce day how much is it really going
8:06 to
8:07 bounce and the relative volume now this
8:10 is an important metric look at the
8:11 relative volume it's very low so one of
8:13 the things that you may know about my
8:15 trading is that I make about 90% of my
8:17 profit on stocks that have five times
8:20 higher relative volume today than their
8:22 average now wha right now is a relative
8:26 volume of 1.27
8:29 why because I had such high volume in
8:31 these past days it's 200 million shares
8:34 of volume this is insane it's huge
8:36 volume so the volume today being only 6
8:39 million shares is very low relative to
8:42 what's normal for that stock so the
8:44 spreads are bigger it's a little
8:45 choppier and we are seeing some flushes
8:47 where Traders are Marketing in and out
8:49 with bigger orders so the relative
8:52 volume is low and how much is it up
8:53 today 19% is it the leading gap or no is
8:57 it the most obvious stock no it's not
9:00 the most obvious stocks today and on any
9:03 given day are the the stocks that are
9:05 the biggest percentage gainers but
9:07 unfortunately today both of these were
9:10 in my opinion not worth trading rwod
9:13 was just selling off not clean and
9:17 zcmd it was just too cheap it's a
9:19 grinder too thickly traded it's just not
9:22 what I it's just not what I'm looking
9:23 for and I I know what I'm looking for
9:25 now the problem is it's very very easy
9:29 easy for me to say I know what I'm
9:31 looking for and even though I don't see
9:34 ITA is the best of what's around today
9:38 so I'll just trade that right it's it's
9:40 like grading the class on a curve well
9:42 you know the best grade was an 85 so
9:44 that becomes 100 and then everything but
9:47 that doesn't work with trading this is
9:49 this was at best a it's a I'd say it's a
9:53 be I would say continuation can never
9:56 really be an a quality setup um because
9:59 first day is always the best for me it's
10:01 always that's always the best now if I
10:03 miss day one uh and it continues into
10:05 day two I'll trade day two but but at
10:07 best it's a b quality setup because it's
10:08 continuation we could even say it's C
10:10 because that makes more sense a c
10:12 quality setup because C continuation
10:14 it's easy to remember uh but it's it's
10:17 probably better than a c in any case
10:2 0regardless
10:22 unfortunately realistically has very
10:24 limited potential the big move already
10:27 happened now you've got bag holders who
10:29 are going to sell into these levels you
10:30 have people who are going to short
10:31 against the highs these days are never
10:34 as clean and if you start trading B andc
10:37 quality setups well what typically
10:40 happens is your accuracy declines
10:41 because these are setups that don't have
10:43 as high of a likelihood of resolving in
10:45 your favor now in a really hot Market a
10:48 br orc quality setup can actually trade
10:50 better and that's fine so you know it's
10:54 it's interesting because in a really hot
10:56 Market almost anything moving gets extra
10:59 momentum because of the strength of the
11:00 market and so I'm just going to be more
11:01 aggressive across the board but in a
11:04 cold Market trading the best of what's
11:06 here ends up typically being a recipe
11:08 for taking unnecessary losses and to
11:10 lose on a Friday you know you always
11:13 feel a little bummed out going to the
11:14 weekend carrying a loss and there's
11:15 nothing you could do about it until
11:16 Monday morning so what I'm going to do
11:19 here is say you know what this is a no
11:21 trade day this was an opportunity for me
11:23 to exercise that muscle of discipline
11:26 which I've been working so hard to build
11:29 I was tempted on wiissa but here was
11:32 what I said as you know I have right now
11:34 a 5,000 share Max position size until I
11:37 make my first $1,000 of profit once I'm
11:40 up over $1,000 I take that cap off so
11:44 and I know that my window really is
11:46 between about 7:00 a.m. and 10: to 11:
11:48 a.m. and today I have a hard stop
11:50 because I have a meeting coming up here
11:52 so I knew that I wasn't going to be able
11:54 to trade as long today and I thought if
11:57 I dig myself a whole excuse me a hole
12:00 here at
12:01 9:45 I'm not going to have a lot of time
12:03 to recoup those
12:04 losses and you know I'm kind of just
12:07 running out of time here and the most I
12:10 could take is 5,000 shares which I
12:11 wouldn't trust even on on this so 2500
12:14 shares how much am I really going to
12:15 make $150
12:18 $200 is it really worth it and I was
12:21 able to talk myself out of the trade
12:22 pretty quickly now I am being a bit more
12:26 um I suppose risk adverse now than maybe
12:30 um at other times part of that is
12:33 because I did have a draw down in March
12:36 and I'm grateful that I was able to
12:37 recover that relatively quickly and I
12:39 don't want to go into another draw down
12:40 because it's not fun you guys who have
12:42 been through that you know what it's
12:43 like so I'm being a little bit more
12:46 disciplined right now just trying to
12:48 lock up consistent base hits and not
12:51 take unnecessary risk now that does mean
12:54 I miss out on what could be profit I
12:56 could have made money on WIA you you
12:59 know it obviously made a nice move but
13:02 if I was in the mindset of taking a lot
13:03 of Trades I might have also taken trades
13:05 on Indo and lost I might have also taken
13:08 a stab at BPTH which hit the scanner on
13:10 a bounce day could have lost on that I
13:13 might have taken a trade on Envy uh nvfy
13:17 and I could have lost on that one too so
13:19 you know out of the four or five that
13:20 popped up really whis is the only one
13:22 that's held up and it it kind of makes
13:25 sense because it was so strong on
13:27 Wednesday morning you know I can
13:29 understand why Traders maybe who are
13:31 bored because nothing else is moving
13:33 would jump on this a little faster and
13:36 maybe it does go higher today and maybe
13:38 when more volume comes in it becomes a
13:40 little safer but also you know it is
13:44 Friday it doesn't have a fresh
13:46 Catalyst you always have the the risk of
13:49 offerings and stuff like that as you get
13:51 further into a move so I think the safe
13:54 thing is to just call it a day and wait
13:57 for something else now again that's
13:59 about being safe it's about being
14:00 conservative it's about protecting from
14:02 downside loss uh but my job is first and
14:05 foremost to manage risk and if I'm going
14:08 to take a trade knowing every trade
14:10 carries risk I have to have a firm
14:12 belief that I have the potential to have
14:14 a nice profit and right
14:17 now the profit loss ratio just doesn't
14:19 feel in my favor today it's the end of
14:21 the week we don't have anything that has
14:22 a really strong news and someone asked
14:25 this earlier uh in in the chat room
14:27 about this and what I said is that
14:30 typically companies are not going to put
14:31 out really really great news on a Friday
14:34 because they you know they'll put out
14:36 bad news on Fridays and hope people have
14:38 forgotten about it by Monday or Tuesday
14:40 morning right so companies are more
14:43 likely to put out good news early in the
14:45 week when the market has a few days to
14:47 kind of get behind you know the stock
14:50 and buy it up based on the
14:52 news that's just a cycle and it makes it
14:55 makes sense why companies would do that
14:57 so you know you you put out bad news on
15:00 a Friday and you hope people cool off
15:02 and forget about it and by Monday
15:04 morning you don't have too much damage
15:06 so anyways it's just we call Friday
15:09 sometimes a wild card day because if you
15:11 get something that starts moving because
15:13 of a lack of anything else people will
15:15 sometimes jump on it a little bit faster
15:16 a little more aggressively because of
15:19 boredom ultimately and that's not
15:21 necessarily a sign of good
15:22 self-restraint or um good discipline but
15:26 it is human nature so and I fall victim
15:30 to it as well but anyways today I'm
15:32 managing my risk and I'm just thinking
15:34 to myself if there was a day to take a
15:36 lot of risk is today the day and I think
15:37 the answer is no so that's it for me I
15:41 will uh lock it up here and again those
15:43 of you guys who haven't uh checked out a
15:45 couple of those recent uploads on
15:46 YouTube uh here make sure you check them
15:48 out we've got the new one on Short
15:50 Selling the new one on um how I trade
15:53 taxfree which is very interesting I'm
15:55 sure for many of you so check that out
15:57 and we'll be back at it first thing on
15:59 Monday morning I'll be live streaming
16:00 for my warrior Pro members and I want to
16:02 thank you guys um as always who hit the
16:04 Thumbs Up And subscribe to the channel
16:06 and I'll remind you that trading is
16:08 risky my results aren't typical so
16:10 manage your risk take it slow and I'll
16:11 see you back here on Monday morning