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COPY This SIMPLE 6-Rule Trading Strategy For HUGE Moves — Transcript

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0:00You'd be surprised at how many people
0:02couldn't follow this because they let
0:03their opinions get in front of the
0:04market. This had a perfect setup. We're
0:07looking at 60-70% move off this level
0:10[music] with a very tight stop. At
0:12worst, I lose 5-6% less than 1% of the
0:15AUM. Versus, what can I get? Multiple,
0:17multiple, multiples on my wrist. This
0:19moves up 70%. It's really simple, yet
0:22not many people can follow it. And you
0:24think you're smarter than the moving
0:26average. [music] If you size it right
0:27and you manage the trade correctly, you
0:29only need a handful of these a year to
0:31have an awesome year. Everyone says,
0:32"Buy low, sell high." How about buy
0:34high, sell higher? These are the stocks
0:36[music] that can really move your
0:38account. You take a bunch of small
0:39losses and then the If you catch one of
0:41these stocks, it covers all that.
0:43>> This professional asset manager manages
0:45$50 million at just 25 years old.
0:48Introducing Connor Bates.
0:50>> If you don't have a formula, if you
0:52don't have a system, then how are you
0:54going to be selective? It's so simple.
0:56You have a big move up, you have a
0:57pullback, you have an expansion. You get
0:5930-40% [music] in 5 days.
1:01>> In this episode of Chart Fanatics,
1:02Connor breaks down the exact
1:05step-by-step process to identify and
1:08follow parabolic moves in the stock
1:10market.
1:11>> Anyone can kind of throw a dart and make
1:12money, right? But, in a hot market, if
1:15you want outperformance, you need to be
1:16in the best movers. If you're buying
1:18this, you're looking at pretty tight
1:19stop for a stock that is a very fast
1:22stock. I could see some people saying,
1:24"It's hindsight [music] when you see
1:25that." But, it's not. You can see this
1:26stuff real time. These are going to be
1:28your best opportunities to make money.
1:30This was up 22% on 400% above average.
1:34This isn't your Aunt Sally buying Blume
1:36Energy. This is a change in character
1:39because Wall Street has to re-rate the
1:41stock.
1:41>> He takes us through his entire process
1:44to identify the largest movers in the
1:47market. All this and more on this
1:49special episode on Chart Fanatics.
1:51>> What are the main hurdles that come to
1:53mind when trying to be effective in in
1:55its execution? Is there anything that
1:57you really have to be sort of aware of
1:59or manage trying to execute this on a on
2:01a regular basis?
2:02>> So, one is being
2:06Before we keep going into this episode,
2:08just remember you can get every single
2:10episode a free PDF with the full
2:13strategy breakdown including all the
2:15rules and everything for you to keep for
2:17free. ChartFanatics.com, put your email
2:20in and you can have the full library of
2:22every episode of Chart Fanatics and
2:23every guest and every strategy. Most of
2:26all, make sure you test those strategies
2:28so that you can see how you would
2:29perform over on NinjaTrader. It's a free
2:322-week trial to simulate these
2:34strategies. for both NinjaTrader and
2:37ChartFanatics.com are in the description
2:39below. Go check it out and let's
2:40continue with this episode.
2:42>> Thank you for being here. And where is
2:44best to begin?
2:45>> So,
2:46best to begin is the why for this. And
2:49the why for this is because every market
2:52cycle there's those outlier stocks that
2:55make the massive moves and, you know, I
2:57wanted to figure out what that looked
2:59like from a price volume characteristic
3:03standpoint and then also from a
3:04fundamental standpoint. And, you know,
3:07Jesse Livermore always says the tickers
3:09change but human emotion never changes.
3:12And so, to me
3:13these stocks have been repeating this
3:15for, you know, all the way back going
3:17back 50 years. And it's, you know, it's
3:20similar to CAN SLIM but I added a couple
3:22things that I found
3:24some minor differences but it still
3:26stems from the overall, you know, what
3:28does a growth stock look like before,
3:31during, and after the move and how can
3:33we capitalize on that because these
3:36these are the stocks that can really
3:37move your account. And these are what
3:39we're looking for cuz these are the ones
3:41that, you know, you know, you take a
3:43bunch of small losses and then if you
3:45catch one of these stocks it covers all
3:47of that and in between.
3:48>> Cool. I'm I'm looking forward to I'm
3:49sure the audience is as well.
3:51>> [snorts]
3:52>> So, what will be the uh first step that
3:53we are looking to break down?
3:55>> Yeah, so the first step. So, there's a
3:57couple things. So, we can say
3:59the super
4:01stock
4:03criteria. And number one is very
4:06important, and that is large
4:09daily
4:11weekly base. And why is that? And that's
4:14because when you look when you go back
4:15and study a bunch of big moves, they
4:17typically start from a big base. And
4:19that's because the stock has gone
4:20through the proper supply and demand
4:22characteristics. It's shaken out weak
4:25hands, and then you can start to see,
4:27you know, volume footprints.
4:28Institutions might be accumulating the
4:30stock. And again, the bigger the base,
4:32the higher in space, and I truly believe
4:34that because, you know, stock moves up
4:37at that momentum phase, and then it can
4:39spend weeks, months, even years in a
4:41consolidation. And we don't want to buy
4:44the consolidation. We want to buy when
4:46it breaks out of that consolidation. So,
4:48that's That's number one. And then
4:50number two is Is it linear? I when I'm
4:54picking a stock to trade, I want it to
4:56trade linear. And that's because, you
4:58know, choppy mean reverting stocks,
5:00they're tough to hold. They don't give
5:02you that performance that you're looking
5:03for. And when you find a linear stock,
5:06you know, it respects certain moving
5:08averages, and it's easier to hold, and
5:10it respects like typical trend signals.
5:12And how do you find that? You look at
5:14the character of the stock. And this is
5:18looking back at previous chart history.
5:22And say, typically when the stock breaks
5:24out of base, does it trend for a couple
5:26weeks to months, or does it just revert
5:28back to the mean? So, linearity is super
5:31important, and it helps you, you know,
5:33narrow down your universe of stocks to
5:36trade.
5:37And then number three is liquidity. And
5:40this is another very important thing.
5:42And why is because typically the best
5:44stocks, the ones of each cycle, like,
5:47you know, the Sandisk of the world or
5:48the Nvidias, they're trading a lot of
5:50volume and that's because number one,
5:53institutions are buying that stock. We
5:56want to follow institutions because
5:58typically they're the ones creating the
6:00base and then and then once it starts to
6:03move out, you know, it's
6:05better supported on pullbacks and it's
6:07just yeah and it and you can scale with
6:09liquidity. So, you know, we don't I
6:12don't want to trade low thin stocks.
6:14It's more so random versus the liquidity
6:17requirement, at least about 80 million
6:20daily dollar volume a day and this can
6:21obviously change as your account grows
6:23and as you're managing more money
6:25because right, if, you know, if you're
6:27managing a billion dollars, you're going
6:29to need more liquidity than that, but
6:31you know, TurboTax right now, you know,
6:33just under 30 million, you know, we're
6:35keying in on stocks at least trading 80
6:37million daily dollar volume a day.
6:39>> So, 80 million?
6:41>> Yes, about.
6:43And then, you know, typically yeah, 80
6:45to 100's the sweet spot and that that's
6:47what we're looking for.
6:49And then number four is ATR and this is
6:53average true range and I want to trade
6:56stocks that have a high ATR and that's
6:58because these are the stocks that can
6:59move the needle, right? I don't want to
7:02buy Coca-Cola, it moves a percent a day.
7:04How am I going to get returns and do
7:06well trading that stock? But when you
7:08can find the stocks that, you know, are
7:10moving 5, 10% a day, they have the
7:13ability to really move your account and
7:14these are the stocks that, you know, can
7:16move, you know, 100% in a month and if
7:19you catch it at the right time and
7:21obviously with the ATR, you know, higher
7:23ATR stocks, you have to position size
7:25accordingly. They can be tougher to
7:27hold, but again, the beau- the beautiful
7:30thing about swing trading and position
7:31trading is we all have low win rate,
7:34sorry. And so, you can lose a bunch of
7:36times, but that one thing that you do
7:38catch, that makes up for all the small
7:40losses and then some.
7:42>> Mhm.
7:42>> And so that's average true range. And
7:45then number five is very important. This
7:48is hot theme.
7:50>> Mhm.
7:51>> Narrative.
7:55Story.
7:57Or group. So kind of these all tie in
7:59together. And
8:00>> I was just sorry. I was going to say in
8:02terms of the ATR, is there a particular
8:04average that you look for in terms of
8:06percent?
8:06>> Yeah, typically at least 5%. So when I'm
8:10when I'm running my scans, um
8:12you know, I'm typically putting a
8:13criteria at least 5% of average true
8:16range. And again, that just makes my
8:19it makes my universe of stocks, it
8:21narrows it to to the specific criteria
8:24that I'm looking for.
8:26And then number five, this is super
8:28important. So we'll start with group. So
8:31um
8:31William O'Neil, he created CAN SLIM.
8:33Obviously, this is kind of derived from
8:35CAN SLIM, but he said 50% of a stock's
8:38movement is derived from the industry
8:41group and the sector. And so basically,
8:43what that means is that right? So let's
8:45talk for example, let's say memory
8:47stocks, right? SanDisk is a memory
8:49stock. Um institutions aren't just going
8:52to buy SanDisk, right? They're going to
8:53buy Micron. They're going to buy
8:54Seagate. They're going to buy Western
8:56Digital. So when you start to see a
8:58handful of stocks setting up in the same
9:00industry group with similar chart
9:02patterns, to me that's like the market
9:04screaming, like pay attention,
9:06something's going on here and um could
9:08be a big move brewing. And then hot
9:10theme, you know, every year
9:13for a certain period of time, there's
9:15that one big theme, right? Over the last
9:17couple years, it's been AI. But there's
9:19so many sub themes in that general macro
9:22theme, like the bottleneck for energy,
9:24um nuclear names. And so looking for
9:27like what's a big driver in the market
9:29right now? And then, you know, finding
9:32the sub sectors of that driver. And then
9:34narrative also is just, you know, what's
9:37the market thinking about this? Is this
9:40a story that the market is looking ahead
9:42of and this and that can help the stocks
9:44really accelerate to the upside. And
9:46then lastly, number six is a catalyst.
9:50And this can be a multiple multiple
9:53things. This could be a earnings
9:55release, I'll put ER. This could be a um
9:59blowout guidance in their earnings
10:01report. This could be a partnership. So,
10:04any any thing, any catalyst, and then
10:08you know, after you get the catalyst,
10:09it's about what is the market reaction.
10:11So, again, you have to analyze two
10:14things, right? You see the catalyst,
10:16what's the catalyst? Is it a massive
10:17beat and raise earnings report? And then
10:20again, like when the market opens,
10:21what's the reaction? Because, you know,
10:23you can have the best catalyst, but if
10:25the reaction from the stock isn't good,
10:28that either means it's priced in or um
10:30the market is forward-looking and
10:32doesn't think, right, they can hit those
10:34numbers in the future.
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11:28Now, let's go back to the episode.
11:30>> So,
11:31this is really my main framework when
11:34I'm looking for stocks to invest in
11:36because, right, there's thousands of
11:38stocks. And if you don't have a a
11:41formula, if you don't have a system,
11:42then, you know, how are you going to be
11:44selective in picking the right names?
11:45And using this criteria helps me, number
11:48one, narrow down the universe of stocks
11:50that I'm looking at. And then, number
11:52two, is just looking back and doing the
11:55self-study myself. I realized all the
11:58big winners that I see in each market
11:59cycle, they typically always have each
12:02one of these characteristics. And why
12:04would I want to trade something else if
12:06it doesn't have it when most of the big
12:08moves checked all these boxes.
12:10>> That's perfect. And one question that
12:11comes to mind is
12:12>> Yep.
12:13>> in terms of the group,
12:15>> Yep.
12:15>> when you're looking at the group, and
12:17so, like, to your example, Sandisk, for
12:19example, the other companies that fall
12:21within that, if you are looking at
12:23those, would you still want to see the
12:25full criteria met on those within the
12:28group, as well?
12:29>> Yes, no, good question. So, yes, so,
12:31typically,
12:32if there's a big group moving, they
12:34typically have very similar chart shape,
12:37as well. And that's because they're kind
12:38of moving in tandem with each other. Um
12:41but again, there's always going to be
12:42your leader of the group, and then
12:44there's also going to be the laggard of
12:45the group. So, the laggard might have a
12:47worse chart pattern versus the leader
12:49might be a little bit more extended. But
12:51typically, in a strong move, you're
12:53going to get some sympathy move in all
12:55the names. And then, you know, then it's
12:57about utilizing your entry tactics to
13:00get into these stocks and picking what
13:02you think the leader is, the one that,
13:04you know, did it break out of a big
13:05base? Does it trade linear? Etc. And all
13:08these all these traits.
13:10>> Is it normally the case, from what
13:11you've noticed, that
13:13the leader will move first,
13:16and then the the sort of the group and
13:19the laggards will move after? Or is
13:21there a case where they do move in
13:22tandem, just the leader will have
13:23probably a bit more volatility, and then
13:26maybe an increased ATR.
13:27>> Yep, absolutely. So, I I've seen a
13:30couple different scenarios in that
13:31sense. Um typically the leader is going
13:34to move first and then you sometimes see
13:37an instance where the leader actually
13:39gets extended and then the market's
13:41looking for a way, you know, they still
13:43like the story. So, then maybe, you
13:45know, the second or third ranked name in
13:46the group really starts to outperform.
13:49>> I understood.
13:50>> And then another thing you sometimes
13:51tend to see and Quantum is a good
13:53example, like when you start to see the
13:56worst name in the group with like the
13:58worst fundamentals start to move up,
14:00that sometimes means the move could be
14:02coming to an end. So, it's like when we
14:04look at, you know, Quantum stocks, you
14:06had IonQ, Rigetti, um D-Wave, QBTS and
14:11then QUBT was like the worst one in the
14:13group and it was the last one to try to
14:15break out as IonQ and Rigetti were
14:19topping and to me like that's a signal
14:21that, you know, the move may be getting
14:23exhaustive and
14:24>> That makes sense.
14:25>> they're holding back.
14:25>> No, I love that. So, where do we go from
14:27here? Now that we have our criteria set
14:29out and, you know, I really appreciate
14:32how you've set this out and it makes
14:33logical sense going from one to the
14:35next.
14:36>> Yep.
14:36>> Um Do you know when it does come to the
14:38group, the last question,
14:41this criteria for the ATR, would that
14:43still be the case if 5% uh sort of
14:45minimum ATR you're looking for or would
14:48because it's the group and the lagger,
14:50is there a case where they might be
14:51slightly less, maybe like a 4 or 3% or
14:54would the criteria stay the exact same?
14:56>> Yeah, absolutely. Like the one that I'm
14:58trading, I want it at least to be above,
15:00but I'm still going to track other names
15:02in the group because one, that just
15:04gives me a feel for the market, an
15:06awareness on the market. Like every day,
15:08right, I have my quote screen with all
15:10these groups that I'm watching. So, like
15:12real time when the market's open, I can
15:14see where money's flowing, where money's
15:16falling out. And although I might not be
15:18interested in buying the stock,
15:21you know, I'm just looking for changes.
15:22Is the group strengthening? Is it
15:24weakening? And that gives me information
15:27on on on the market and helps my
15:29awareness.
15:30>> Love that. So, where should we go next?
15:32>> Yeah, so now So, you've identified the
15:34super stock and it meets all these
15:36criteria. Now, it's about how can you
15:38get into the stock? And I will talk
15:41about the different entry tactics that I
15:43like to use for this and they're
15:45timeless. All All super stocks will give
15:49all these All these types of entries
15:51throughout the run. It's your job to
15:53find them and figure out how you can get
15:55in at a low-risk spot. So, the setup
15:57playbook. So, one thing I always like to
15:59start is I always like to say, this is
16:02where I believe I think stock over
16:05setup. And what I mean by that is this
16:08ties into the criteria because,
16:11you know, just looking for the perfect
16:12chart pattern out there, you know,
16:14they're harder to find and it just could
16:16be random versus
16:17let me make a playbook for
16:20to get into these stocks that offer
16:22multiple different entry points. And so,
16:24the main ones
16:25that I like to use to get in to get long
16:28stock exposure is a couple different
16:30setups. Number one is the base breakout.
16:33And this is pretty simple. This can be
16:37This can be a matter of weeks. This
16:39could be months. This could be years.
16:41And basically, right, say you have this
16:43line and then this stock is just
16:45consolidating below the line and then
16:47boom, it takes out. Typically, it's
16:49getting a tight area underneath that
16:51line. And again,
16:53you know if you're wrong right away,
16:54right? If it comes back into the base,
16:56then the market's telling you this isn't
16:57ready. But typically, the best ones,
17:00once they break out of that base, you
17:02know, they sometimes retest it or
17:04they're just off to the races and
17:06they'll never come back. And so, you
17:08know if you're wrong semi quickly. And
17:11um like I said, it fits the bill of big
17:13bases lead to big moves. And And can be
17:15a matter of a couple weeks, couple
17:17months, to a couple years.
17:19And then number two is the continuation.
17:24It's the continuation
17:26flag or just side or HTF. This is a high
17:31tight flag. So, you have your base
17:33breakout. So, we'll just keep this uh
17:36So, you have your base breakout. The
17:37stock starts to move up. Maybe you
17:39didn't have it on your radar, but you
17:41want in and it starts to move up. Stocks
17:43don't go up forever. They move in
17:46repeatable patterns, kind of like a
17:47stair step. So, this stock moved up and
17:51then it forms another mini base or a
17:53mini flag. So, a high tight flag is when
17:55a stock moves 100% in a short amount,
17:57matter of weeks, and then it puts in
17:59like a flag pole, whether that be with
18:02the depth no greater than 20%. And so,
18:06the stock moves up out of this base, it
18:08puts in a consolidation, and boom, this
18:10is your entry coming out of that
18:12continuation flag. And typically when
18:14you look at a life's cycle of a stock,
18:17the first consolidation after a big base
18:19breakout is a buy because the move is
18:21very early. And we're talking, right?
18:23We're talking a year base, you know, we
18:25just broke out. It could run 100% in two
18:28months. Many people will think it's
18:30extended, but to me that just means, you
18:32know, this move is just potentially
18:33getting started and I want to get on
18:35board.
18:36So, that's the continuation. And then
18:38number three is
18:40just the pullback
18:42to ascending
18:44to ascending moving averages.
18:48I'm just going to abbreviate MA for
18:50moving averages. And so, right? You have
18:52your base breakout, you have your flag,
18:54and then
18:56and then you're looking to get in. Maybe
18:57the market gets sour or the group
18:59weakens and the stock starts to pull
19:01back. The macro trend of the stock is
19:03still up. So, I'll use this. So, you
19:06know, this this is the trend of the
19:08stock, right? And then we have our
19:11we use this, which is a good longer term
19:14trend. This is our 50 SMA S
19:1850 day simple moving average and then
19:20we'll also have which the 10 week moving
19:24average which is just if you go on a
19:25weekly chart the 10 week equal is the
19:28same thing as the 50 day moving average
19:30and sometimes it can provide a good
19:32entry and so you have your stock and
19:35you're looking to get in and like I said
19:37maybe the market turns a little bit sour
19:39and this hasn't touched the 50 day. All
19:41stocks in their trend revisit 50 day
19:43moving average like I said it eventually
19:46happens and the stock starts to pull
19:48back and then now we're looking to get
19:50in, right? We we don't want to buy
19:52falling knives but if we see an orderly
19:55pullback maybe an undercut reclaim of
19:57that moving average we can buy it as it
19:59reclaims that average with a clear stop.
20:02If it breaks back below 50 day moving
20:03average maybe it's not ready and you're
20:05taking a small loss and again with the
20:08way we trade small losses are the name
20:10of the game until you catch that outlier
20:12stock and it will pay for everything. So
20:14we're keeping risk very tight on these
20:17and so that that's like the pullback
20:18setup and you can use multiple different
20:21moving averages whether you know in a
20:23power trend it could respect the 10 day
20:25moving average really well. It could
20:26respect you know the 21 EMA. You know
20:28it's about what's the character of the
20:30stock. If it respects the 21 EMA really
20:32well then maybe you want to look to buy
20:34it off that. So and I and I typically
20:36just use on my charts I have the 5 SMA
20:39um the 10 SMA the 21 EMA 50 SMA and 200
20:44SMA and those are what I use and then
20:47for the weekly charts 10 30 and 40 weeks
20:49so the 10 week moving average on the
20:51weekly chart is the 50 day on the daily.
20:53The 30 week is the 150 day on the daily
20:56and then the 40 week is the 200 day on
20:59the daily.
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22:53Let's get back to the episode. And so,
22:54those are those are my trend metrics
22:57that I use to assess, you know, the
22:59health of of stock and look for dips.
23:01So, that is pullbacks. We might need
23:03some more room on here.
23:05>> Yeah, we can uh thank you. Before we
23:07move on to we've talked about how we can
23:09enter off this particular pattern, but
23:11we
23:12these ones in terms of the base break
23:13out, would you just be executing once we
23:15as soon as you break above?
23:17>> Yep. So, combination of different
23:19things.
23:21If if the stock hasn't run a significant
23:23amount into the breakout level, because
23:25you will see that sometimes if you wait
23:28for the {quote} {unquote} clear breakout
23:30level, you know, you're buying a stock
23:31that just moved 20 30%. And it's likely
23:34going to lead some frustration. So,
23:36ideally, you get some tightness under
23:38the base and you'll see that a lot. I'll
23:40show some examples in the chart, but
23:42>> Is that where you might see a cup and
23:43handle?
23:44>> Exactly. Yes, a cup and handle and then
23:46yeah, when it when you have tightness,
23:48you have an easy level to risk on,
23:49right? You could use last week's low or
23:51the previous day lows. But, um if it's
23:54not too extended to the base high, then
23:57I will buy it just as it goes through
23:58the line.
23:59>> Got you. And then in terms of uh
24:01the continuation the flag, is it a
24:03similar concept when it comes to the uh
24:05consolidation at the flag? So, after
24:07that extension,
24:08you have the flag form and that
24:10secondary consolidation, if you will,
24:11reaccumulation.
24:13Is it this the same principle with when
24:15in the flag looking at that tightness?
24:17>> Exactly. Yes.
24:18>> Exactly. So, typically, you want to see
24:20a dry up in volume. You might want to
24:22see a shakeout in the flag and then, you
24:24know, it comes up to that area that it
24:27potentially break out of, maybe puts in
24:29a tight day. If you see confirmation
24:31with volume, then that's your sign that
24:33okay, maybe the stock is ready to
24:35continue to run.
24:36>> to see that volume start to pick up as
24:38towards that tightness as well?
24:39>> Absolutely. Yep. On the breakout day,
24:41typically, want to see volume and if
24:43there's a catalyst, even better, it will
24:45have volume if it's a good catalyst.
24:48>> So, do you do you have more to go over?
24:49>> Yes. Yes.
24:50>> Cool.
24:50>> Two
24:51>> Everyone screenshot. Make sure you Make
24:53sure you remember this.
24:54>> Okay. And so, the next setup that you
24:56can use to get into these episodic
24:59>> Mhm.
24:59>> pivot. And, you know, a lot of people
25:02have talked about this. I think you had
25:04Pradeep on your show, which he he's
25:06given so much amazing criteria on this.
25:09I'm not going to go into sup- into depth
25:12on, you know, what to look for, but just
25:14talking about specific set-up. And
25:15again, ideally, you have a stock that's
25:19pretty main principle a stock with a
25:21long period of neglect, right? And that
25:23fits the theme of the big base. And then
25:26again, you have your game-changing
25:27catalyst that, you know, all of Wall
25:30Street is caught off guard. It's a huge
25:32shift. They have to update their models.
25:34The stock is seeing a huge re-rating.
25:37And then again, once it gaps up, you're
25:39going to look to get in on, you know,
25:41well, a couple things. You you know, you
25:43get into the intraday chart. You can
25:44take the 5-minute opening range break,
25:46or you can wait for the undercut. It
25:48just, you know, depends on what you
25:50know, what fits your personality and how
25:53and how you think. But again, you're
25:55seeing a stock gap up on volume with a
25:58big catalyst, then that's the spot to
25:59potentially try and get in. And when you
26:01look at a lot of stocks that have made
26:04substantial moves, when do the moves
26:06really start? Well, they typically start
26:08on an earnings gap, because that is the
26:10game-changing catalyst that no one knew
26:12about, and now it's known through the
26:15earnings report. And that first, you
26:17know, earnings gap is where your best
26:19opportunity is, because it's still early
26:22versus, you know, it just had three,
26:24four earnings gaps in a row. It's not
26:26that new to the market, but this is just
26:28a phenomenal way to get into a stock,
26:30and it just takes a simple scan in the
26:33morning, right? You look
26:34at what stocks are gapping up on
26:36earnings, and
26:38you know, it's easy to sort through
26:40them, and you see which one had a, you
26:41know, beat and raise quarter. And then,
26:43if it's gapping up, you look to get in
26:45off the open. And typically, the best
26:47earnings gaps, once they So, we'll just
26:49say this is a 5-minute chart, right?
26:51This is the five first 5-minute candle.
26:54Typically,
26:55the ones that take out that first o-
26:575-minute opening range break, and then
26:59you can say your stop is right low of
27:02day,
27:03which is right here. And typically, the
27:04best ones, there's a stampede of volume
27:07right off the open, and they typically
27:08never break low of day. And you'll see
27:11that in
27:12uh it's Dan Zanger, I think, talks about
27:14this. It's, you know, the best horses
27:17don't go back to the gate. Right when
27:18you buy it, you have immediate feedback.
27:20It's the market telling you you're
27:22right, and then typically doesn't
27:24meander come back and test your average.
27:26And so, that's the episodic pivot.
27:28And then one of my favorite ones that
27:30I've really learned to like over the
27:32past 6 months is the undercut and rally.
27:36And so, this is
27:40So, we'll start with market environment.
27:41When does this setup work the best? And
27:44that is when the market has pulled back.
27:47So, we'll say market
27:49I'll just abbreviate ENV for market
27:51environment. So, we'll say this So,
27:54right here is a chart of the QQQ, right?
27:57And say
27:58started off strong. This is kind of what
28:00we were seeing a little bit now. It
28:02consolidated, and it started to break
28:04down, and say it's Let's say it's taking
28:07out these Say this is January lows. So,
28:09this stock takes out January lows, okay?
28:12And then let's say I'm looking at a
28:14stock.
28:15Say, let's just use SanDisk for an
28:17example.
28:18And so, this was moving with the market,
28:21um and then again, the market starts to
28:23weaken up. Say pulls back a little bit,
28:25pulls but it's still holding up. It's
28:27showing relative strength, and that's
28:29always what we look for. Stocks that
28:31resist the urge to go down when the
28:33market goes down, and then when the
28:34market goes up, they outperform. It's
28:36essentially
28:37RS is looking for relative strength
28:40finds you the leading stocks. And so,
28:42right This is Say this is January. So,
28:45we have the Nasdaq taking out January
28:47lows, but I'm watching SanDisk say it
28:50only undercut
28:52this low right here.
28:54Excuse this. So, SanDisk is breaking
28:57this little shelf low while the NASDAQ
28:59is as well. But, say the market starts
29:02to bounce a little bit,
29:04you could see the SanDisk, it held up
29:07better than the market. First sign of a
29:09market bounce, this reclaims this left
29:12side peak, and then it's looking to
29:14break out before the market is still the
29:16Qs are still significantly off the
29:18highs. So, and again, you have your left
29:21side support, and you can just simply
29:24say if it reclaims that level, that's an
29:26entry point with a stop below that pivot
29:30point, and that helps you get into a
29:32leading stock with market weakness, and
29:35then if the market does start to write
29:37itself out, you potentially have you've
29:40invested your capital early into a
29:41stock. And so, that's you know, I've
29:44really enjoyed the undercut rally
29:46because your risk reward is typically
29:48good, and then also,
29:50you know, you don't have to worry about
29:52trying to buy a breakout because if
29:54someone buys a breakout now,
29:57price might come back in, and who's to
29:59say you could get stopped, whereas the
30:00structure of the chart is still intact.
30:03So, using So, the main thing with the
30:05undercut rally is
30:07you want a clear left side peak. So, I
30:09could There's There's a couple different
30:11examples, right? So, um
30:13you could have, you know, big base,
30:15stock moved up,
30:17pulls back, so, you know, this would be
30:20This was a significant level right here
30:22because this is where that stock broke
30:24out of, and it's pulling back to that
30:27level, undercuts a little bit, right?
30:29Maybe some people have their stop losses
30:31here, meanders, maybe price tightens up
30:34in a nice little range, and then it
30:35comes back through. And typically this
30:37setup shows up when the market weakens,
30:41index is maybe pulling pulling back and
30:44uh you know, you're looking for relative
30:47strength. You see it in what you might
30:49have identified as a super stock and how
30:51do you get in? Well, you can use the
30:52undercut and rally set up.
30:53>> Yeah.
30:54So, in this the premise of this one is
30:56very interesting. So,
30:58you know, it's how to rally. It It
30:59leaves a particular low.
31:02>> Yep.
31:02>> By breaking that low, no doubts in the
31:04shakeout. People who bought at this at
31:06this point
31:06>> Yep.
31:07>> is going to then in probably induce them
31:10and try and get people to start selling.
31:12>> Yep.
31:12>> Right along this all the way down here.
31:15Um
31:16and then now when that actual buy takes
31:18place, you now have a lot of liquidity
31:20you can push through to then take out
31:22new highs.
31:22>> Yep, absolutely. And then again, like
31:24and then you don't have to worry about
31:27buying the breakout and getting shaken
31:28out just because that's also
31:30characteristic I've noticed is breakouts
31:33can be depends on the market
31:34environment. And so breakouts can
31:36sometimes be tougher in certain areas of
31:38the market. Um but yeah, so that's why I
31:41love the undercut and rally. And I will
31:43add one more thing and I want to add is
31:47what a setup theme. So, like the the
31:50cycle of a stock and how you typically
31:52see they start or I can write down. So,
31:54if we
31:55>> Yeah, cool.
31:56>> Awesome. So, and then this also you tend
31:58to see when you study like the movement
32:01the movement of a stock, um they they
32:05the the setup theme kind of goes in
32:07order, right? So, first you have your
32:08stock and first setup that you typically
32:11see before a move starts is your base
32:13breakout, your period of consolidation.
32:15So, you have that. So, you have your
32:16base breakout which was the first setup
32:18in the player roster. That was the first
32:20setup in the playbook. So, you have this
32:23here. And then the second setup of the
32:25playbook, right? Was the continuation
32:27flag, right? You have a little
32:28consolidation.
32:30You can buy it right here. And so,
32:32that's the second variation of the of
32:34the setup in the stock's move. And then
32:38the stock continues to move
32:40and, you know, it's getting extended.
32:42Maybe we're 3 months into the market
32:44rally and then starts to pull back and
32:47you're watching this pullback. But, this
32:49whole time it's contained above the 50
32:53SMA, which again is an intermediate
32:56trend for a stock that that we like to
32:59use and and William O'Neil, arguably one
33:02of the best growth investors of all
33:04time, he said, "Buy the first pullback
33:06to the 50-day moving average after a
33:08nice run." And so, it's simple as that.
33:10You have your pullback to your ascending
33:12moving average, it holds, that offers
33:15another entry. And then, you know, the
33:17next one again, actually, so episodic
33:20pivot could occur back here as well in
33:22the base. So, this this kind of goes
33:24hand in hand with the base. And then,
33:27um so, you have your 50-day moving
33:29average pullback buy and then maybe, you
33:31know, the stock keeps stair-stepping
33:34higher, gets a little bit extended.
33:36Again, we might incur a market pullback.
33:39What does it do? It pulls back to the
33:42top of this base, looking left in the
33:44chart, and this is why I always like to
33:46utilize the daily and the weekly charts
33:48because
33:50you know, we I want the big picture. So,
33:52and then this last one, um we have
33:55again, the undercut and a rally setup.
33:58And then by this time, right, the stock
34:01could have been running for a while, you
34:02could start to get that blow-off move
34:04>> Mhm.
34:05>> that we've seen quite a lot of recent,
34:07you know, MSTR, SMCI, which I'll cover
34:10in the in the stock aspect. But, again,
34:12yeah, so understanding where the stock
34:15is in its life cycle, not only
34:17understanding the story, the narrative,
34:19the growth, but then also looking at the
34:21price action and asking yourself, "Hm,
34:24is there a setup theme right now?
34:26What's the general market doing? And,
34:28you know, is this later stages of the of
34:31its life cycle or early stages and
34:33having this set up playbook helps a lot
34:36to have awareness on where the stock is
34:39and then not only that but also um
34:42gives me multiple ways to try and get
34:44into the stock.
34:45>> Definitely, you can see how you know
34:47using this playbook and this criteria
34:49you are able to then utilize many
34:51different points along that cycle.
34:53>> Absolutely.
34:54>> to really maximize the growth and even
34:57even if you're not executing on each one
34:59for any reason and though you know very
35:01very possible and probably
35:03optimal.
35:05It still allows you to hold confidence
35:07in and have an understanding of the
35:09stock itself and the characteristics of
35:11what it's showing you.
35:12>> Yeah.
35:12>> Um so I absolutely love it, yeah. Where
35:14where should we go from here?
35:15>> Um
35:16you know we can get into the charts.
35:18>> I'm sure, yeah. Let's [clears throat] do
35:19it.
35:20>> Awesome, yeah.
35:20>> the people at home will be wanting to as
35:22well. Anyone at home actually, if you
35:23are interested in going deeper into
35:25episodic pivots,
35:27um you know make sure you can check out
35:28Prady's episode going to the the nuances
35:31of that. But for now, we're going to
35:33jump into the charts.
35:34>> Let's take a break for a minute there
35:35guys cuz a quick word from our official
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36:25back to the episode.
36:26>> Okay, so the first example that I want
36:29to talk about and to me it's arguably
36:31one of the best examples is SanDisk and
36:34we're going to go through the criteria
36:36and the progression of this chart. So,
36:39we're going all the way back to February
36:4114th. This was a um spin-off of Western
36:45Digital and basically what that allowed
36:47SanDisk to become was the pure play
36:50memory stock for um
36:53for AI. You know, memory again was a
36:55big bottle neck. We needed more memory
36:57and basically essentially SanDisk was
36:59like the gas station um of memory. So,
37:03looking at the checklist, right? We have
37:04a multi-month base, a very nice
37:07consolidation and what's the first setup
37:09that showed up here? This was a simple
37:12flat base breakout and what Riz said,
37:15you know, what we talked about earlier
37:17is that do you buy it? Again, this did
37:19move, let's see, this moved roughly, you
37:22know, 30% to this level, but you can see
37:25this volume and this was coming out of a
37:28out of months of consolidation. So, to
37:30me this was looking good. This was on my
37:32radar, but I did not buy this then and
37:35then look how linear this stock moves.
37:37If you bought this base breakout, you
37:39have a stop here at the lows and this is
37:41giving you a almost triple digit gain in
37:44a matter of less than less than a month.
37:48Then we look here. You had a pullback
37:50kind of again, I was watching the stock.
37:53I didn't I didn't buy this pullback. It
37:55was a little bit short to me and then
37:56right here is when I initially got
37:59involved into the stock and from the
38:02setup playbook, what do we have here? We
38:04have a pretty classic high tight flag.
38:07We had a over a triple 100% move in a
38:09matter, you know, in about a month and
38:12then we had a very short um multi-day
38:15consolidation. You had a little
38:17undercut, kind of like a shake here and
38:19you can see the depth of this pullback
38:22was less than 20%. So, again, at this
38:25time I would imagine many people are
38:27looking at this stock and they say, "Uh,
38:29it's too extended. Like, how can I buy
38:31here?" But,
38:33essence of a high tight flag is the
38:34stock is always going to be extended and
38:37it's just showing extreme power. So, I
38:39bought this initially at 135 and we'll
38:42go back to the themes, right? So, what
38:45was moving during this time? Why
38:47why did why did I like Sandisk? Well,
38:49because we can go back and look at
38:51Western Digital. Look at what this stock
38:53was doing. We can go back and look at
38:56Seagate. What was this stock doing? And
38:58you can see they were all rallying
39:00nicely. So, that gave that can give you
39:02conviction that, "Hey, maybe this
39:03Sandisk does work." And this was more of
39:05a newer merchandise. It was a spin-off.
39:08And so, from that move you get a, you
39:11know, 100% move, right? In a in a pretty
39:13short order.
39:15When I was in this, I was selling some
39:16into strength and on this day right
39:18here, I sold the rest of it. Um, again,
39:21to me, you know, I'm trying to catch the
39:23bulk of the move. So, I want to be when
39:26the trend's powerful and to me this was
39:28a change in character day, right? A big
39:30big bar break to the downside. This
39:33orange line is the 21 EMA and to me like
39:37I still like the stock, but I was just
39:39taking the final piece of the position
39:41off. But, it didn't get off my radar
39:44because one, this was, you know, super
39:46stock, had all the criteria, you know,
39:49the theme was hot, had big earnings, um,
39:52backlog was big. And so, now this sets
39:55up another perfect pattern. We talked
39:58about the first pullback to the 50-day
40:00moving average in a growth stock is a
40:02buy. This This red line is the 50-day
40:05moving average right here and you can
40:06see you could even argue this was an
40:09undercut and reclaim of this wick. Yeah.
40:11Plus, it held above the 50-day moving
40:13average. So, you have an entry there and
40:16then you had another third, so you had
40:20You had first pull back, you had another
40:22higher low riding the 50-day moving
40:24average, and then you retested it for
40:26the third time holding the 50-day moving
40:29average. And so, to me, what was
40:31happening here was, you know,
40:33institutions were accumulating the
40:34stock, and this was the first true base
40:37that it formed really, um, other than
40:40that short little high tight flag. So,
40:42even after selling it here,
40:44I got re-engaged into this stock, um,
40:48we'll go, sorry, get a line, I got
40:50re-engaged right around here, and then
40:52this offered another entry, too, is you
40:55could have bought a simple breakout,
40:57right? You had your tightening in the
40:59right side of the base, we were talking
41:01about this cup and handle.
41:03You had your, you know, cup handle here,
41:05and then you have this handle out here,
41:08and what happens? You get a very nice
41:09day breaking through your line out of
41:12this tight range, right? If you're
41:14buying this, you know, you're looking at
41:16a pretty tight stop for a stock that is
41:19a very fast stock, and so that means you
41:21could potentially put on some size in
41:23this one, and so it breaks out, puts in
41:26a rest day, pretty normal, and then even
41:28here, you have your 300 psychological
41:31level, this even could have been an add
41:33point, and so at that time, fully
41:35positioned into this stock, and then as
41:37you can see, what's what is the
41:39character of Sandys when it breaks out?
41:41It's just the best stock to be in.
41:43This this 5 SMA, which is to me like the
41:46ultra short-term moving average, the the
41:49strongest of the strongest stocks can
41:51just ride this thing higher. And look at
41:54If you bought this, you don't It's just
41:56This is giving you another triple-digit
41:58gain, um, from this breakout, and, you
42:01know, I trimmed along the way here,
42:04right? This day 130, this was that
42:06earnings gap, it gapped up over, you
42:08know, pretty big on a a
42:10earnings, and again, this is comes to
42:12the theme that not every earnings report
42:15is equal. A lot of the story had been
42:17priced in at this time. So, this is not
42:20and there's no neglect. The stock is
42:22vertical. It's gone from 60 to 725 in
42:24the matter of
42:26a couple months. And then so, I sold
42:29quite a lot of position now. And now I
42:31just have a small trailing position
42:33actually. And
42:35this this yellow line here along with
42:38we'll take a look at the weekly, not the
42:4010-week because it's too extended to the
42:42downside. But now, you know, we'll see.
42:45It's we'll see if it can you never know
42:47how high these things can go. And that's
42:49why I always like to sell last portion
42:52on weakness because again, like I said,
42:53you just really don't know. And really
42:55got that from Chris and cool Maggie is
42:58he has this code if something about if
43:01you don't trail moving averages in a hot
43:03market, you retire 10 years later. And
43:05that's just because if you're in a good
43:07environment, you never know how high
43:08these things can go. And so, this is
43:11arguably
43:12one of the best examples I can find
43:14because it seemed like not a lot of
43:16people thought this stock was very hard
43:19to get into. But when we look at the
43:21move, it had virtually every setup in
43:23the playbook at a really clean spot. And
43:26again, you can't have growth stocks can
43:28go higher than you think. And so, if you
43:31think it's extended, it's not extended
43:32when you when you look at the structure
43:34of the chart. And again, the beauty with
43:37this system is
43:38you know, if the trend breaks, we'll be
43:41out. We're not holding this all the way
43:42down and we're looking to capture that
43:44momentum. So, that is Sandisk arguably
43:47arguably the most polarizing and the
43:49best stock in the market right now. And
43:51it and it fit and this is this is what I
43:54noticed big winning stocks that have
43:56this criteria can do. And these are the
43:58outliers that you want to look to
44:00capture.
44:00>> Of course. Cuz just a handful of these a
44:02year can make or break your your career
44:04in compounding that over years
44:06>> Mhm.
44:07>> is where you see that exponential
44:08growth.
44:09>> Exactly. And it comes down to the thing
44:11of under trade, be patient because
44:14again, one of these is going to show up
44:16again and if you size it right and you
44:18manage the trade correctly, you only
44:20need a handful of these a year to have
44:22an awesome year and the rest you're
44:23just, you know, controlling your equity
44:25curve, not trying to go into drawdown.
44:27>> to be honest with you though. I wish I
44:29had this playbook because I from just
44:31the work I do with social media, SanDisk
44:34and memory was like a big thing.
44:36And it was just like a year, maybe even
44:382 years ago and I was like, "Oh, maybe I
44:40should look to invest in the companies
44:41or
44:42SanDisk itself." Didn't do it of course.
44:44Didn't even look at a chart.
44:46>> Yeah.
44:47>> And if I had this, I would have probably
44:49been in a very long time ago and had a
44:50very good very healthy portfolio. But it
44:53just goes to show, I never really feel
44:55FOMO cuz it's like a learning point. It
44:57is for me and I would imagine there's
44:59other people out there who probably find
45:00themselves in a similar scenario. Maybe
45:02it was you years ago
45:03>> Yep.
45:03>> where
45:05you've
45:06even if you haven't done a deep
45:07analysis, but you have the thought
45:09process of, "Oh,
45:11this will probably be impactful in the
45:13future.
45:14This should be worth looking at or
45:16investing in." And even if you end up
45:17not doing so,
45:20and you might feel FOMO, right? Or you
45:22know, feel like you missed out, but
45:24it's a good sign that you were able to I
45:26connect some dots even if you didn't go
45:28all the way.
45:28>> Exactly.
45:29>> sign because
45:30something that is a very interesting
45:32with these sort of movers in particular,
45:35cuz even if you don't capture the whole
45:36move, even if you only end up getting
45:37one entry, all it takes is a good
45:39handful of 100% moves um
45:43to really change uh
45:44your career. You can really change
45:46essentially your life um,
45:48you know, because even if you start with
45:50small sums,
45:51>> Exactly.
45:52>> of those 100% plus gainers, even
45:53multiple 100% gainers over the space of
45:56say 10 years
45:57>> Mhm.
45:57>> is a dramatic increase.
45:59>> Exactly.
46:00>> Um and I think a lot of people don't
46:02realize that. You know, then that this
46:03opportunity, especially in comparison to
46:05say shorter-term trading
46:07I don't want to say easier, that's the
46:08wrong word, but like this
46:10is a methodology that anyone You don't
46:12need to be a professional fund manager
46:14or anything. Like anyone and anyone can
46:16do this. And if anything, a lot It's a
46:18lot simpler
46:20in nature
46:22and calmer in nature than you know,
46:24intraday scalping or or day trading.
46:26>> Yep.
46:27>> Um, but it still requires that
46:28discipline.
46:29>> Exactly.
46:30>> Um, to follow the criteria you've set
46:31out. And it still requires that
46:33discipline to execute when the time's
46:35right.
46:35>> Yep.
46:36>> And manage your trades uh properly.
46:37>> Exactly.
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47:54Let's get back to the episode.
47:55>> Yeah, no. And it again, yeah, you can
47:58someone can have a full time, they don't
47:59do this for a living. This framework is
48:02you could use it, right? And you if you
48:03have time in the evenings, you can do
48:05it, find your stocks, have your levels
48:07that you would buy. And so, yeah, it's
48:08um
48:09and again, and with this with the style
48:11is
48:12there is really no limit, right? There
48:14this is, you know,
48:16the bigger that your portfolio grows or
48:18the more money that you're managing,
48:20you know, whole time is important,
48:22right? You have to accumulate stocks and
48:24you kind of need to have a bit of an
48:25understanding um of the, you know, the
48:28story and what you're looking for and
48:30having different entry tactics like
48:31buying pullbacks and whatnot. And then
48:33to your point about, right, sure you
48:36could have just bought it at 60 and held
48:38the whole way, that's great, but like we
48:39showed, look how many amazing gains I
48:42knew I knew I knew like one person that
48:44bought it here, but again, right? Look
48:46at how many times this offered
48:48opportunities to get into the stock and
48:51offered great great returns, multiple
48:53100% moves. And, you know, we're looking
48:55to compound our capital. So, you know,
48:58you do that, you have and then compound
49:00it again in another stock and that's how
49:01you really get that super performance.
49:03>> That's right.
49:04>> So, and so we'll we're going to dive
49:06into some more examples. Um let's do
49:08Rocket Lab. And Rocket Lab's a good
49:10example of one that, you know, I I saw
49:14quite early, but I wasn't involved. And
49:16again, it fits theme that if you think
49:19you missed it, sometimes you really
49:20haven't. So, zooming all the way back,
49:23right? We're looking at the Rocket Lab
49:25we have a massive multi-year base,
49:27right? Like this this stock has been
49:29dead since, you know, topped in 2021
49:32with a lot of growth stocks, but just
49:34this whole period of basing, it's just
49:37going through the proper supply and
49:38demand characteristics.
49:40And then we need a spark. We need
49:42something to, you know, get this out of
49:44the base and what's that going to be?
49:46And so, all the way back here, you got
49:49your initial kind of, you know, base
49:51breakout. And this one
49:54again, may, you know, fouled here, came
49:57back in, but this is when it was showing
50:00it started to show some linearity,
50:01right? Off the bottom, we had a 70%
50:04move. We had a normal pullback. We had
50:07another 20% move, and then we had some
50:09tightness in the chart, and we can see
50:11the alignment of the moving averages.
50:13This is another thing that you need to
50:15look at for when trying to figure out
50:18when the stock potentially might be
50:20ready. You can see the moving averages
50:22were all tangled in here. Um and then
50:25you we got that full positive alignment.
50:2850-day above the 200-day, and so the
50:30trend is now starting to change.
50:32>> Is there volume as well, the uptick in
50:35volume in comparison to the the rest of
50:37the base?
50:37>> Absolutely. And that's another thing is,
50:40right? It's, you know, had some volume
50:42here, but again, this was, I believe, at
50:44the time, yeah, this looks like it was
50:46highest volume ever, and that's another
50:48thing you can run easily. You can just
50:50run a daily scan, spit me out stocks
50:53that have highest volume ever, because
50:54something potentially is going on there.
50:56>> Even at this stage, if you just zoom out
50:58again, quickly, sorry. Um
51:01just here, if I just uh show you here,
51:04would this still be a criteria? I know
51:06it was something that we went writing
51:08out the examples kind of a bit later on
51:10in terms of a
51:12a
51:12a setup.
51:13We see how we sweep this high,
51:15>> Yep.
51:16>> and then probably get some, you know,
51:18buys in, and then we end up coming
51:19undercutting here.
51:20>> Yep.
51:20>> The low, the current low of the base,
51:22and that's actually then the low of
51:25the overall base itself. Would that then
51:27be the undercut rally still? Is it like
51:29a even if you might not execute from
51:31there, cuz you're still in the base at
51:32that point, would that be like sort of a
51:35oh, this could be a
51:36the start of something, and then you
51:38start, as you said, the EMAs, the volume
51:41start to get tighten around the the the
51:43top of the the range, if you will?
51:46>> Yep. No, yeah, that can absolutely be an
51:48entry, but primarily
51:50for the undercut rally that I trade, I'm
51:52looking for a more established uptrend
51:54at that point. But again, this it's the
51:56same concept, and at the end of the day,
51:59we're just trying to get positioned in a
52:00stock with low risk. And what does this
52:03give you? Low risk, because
52:05say this is really important level. If
52:07it breaks it, then it's probably going
52:09lower. But what if it sweeps it, like
52:11you said, and reclaims? Then maybe
52:13there's some trapped shorts there, and
52:14then that's kind of what starts the
52:16move. And so, going on in this chart is,
52:21right, we have the stock is showing a
52:23lot of linearity. I wasn't involved, but
52:25it moves out of this flag, right? We
52:27talked about those flags. See the volume
52:30drying up, and look at the uptick in
52:32volume, and then it continues. And
52:34again, this offers really This offers a
52:37really nice move.
52:39Triple-digit gains, never breaking the
52:4121 EMA. So again, a simple sell some
52:45into strength, and then just trail with
52:46the moving average that the chart
52:48respects. And that And it's really
52:50simple, yet not many people can can
52:53follow it, because the stock starts
52:55getting extended, and you think you're
52:56smarter than the moving average. And
52:58when in reality, that's why you pay
53:00yourself as it moves up, you you finance
53:03your risk. And then, again, like I said,
53:05we don't know how high any stock can go.
53:07And if you're arbitrarily just I know, I
53:11always trail some, but some people like
53:13to think they just sell everything at
53:15the top. It's you're basically trying to
53:17say that like you know what the market's
53:19going to do, versus letting it move. So,
53:23this gives you an opportunity, and if I
53:24was in right now, it's starting to get
53:27choppy, and when it broke the 50-day
53:28moving average, this I would have been
53:30out as well. Maybe I would have given it
53:32more room, but at this time, I would
53:34have exited the stock if I was in it.
53:36And then, again, it, you know, kind of
53:39just moving sideways. There was no like
53:41big catalyst at the time, but again,
53:43this had a big base, so we're just going
53:45through the the life cycle of the stock.
53:48Um and then this was also the the tariff
53:50tantrum as well. So, everything pulled
53:52back, especially high beta, but I will
53:55go back into a recent example of Rocket
53:59Lab from this year, and it had a couple
54:01of things. So, one, remember I talked
54:04about that undercut reclaim of the left
54:05side peak. So,
54:07we're watching the stock. It has a lot
54:09of the criteria. It's um had a big base.
54:12It trades linear when it breaks out. Um
54:14it's liquid. It it moves fast, right?
54:16Even today it averages 10% a day.
54:19>> Wow.
54:19>> And so, right here is when I bought, and
54:23there was a key reason why I bought
54:25here. Right on this day, it was
54:28um
54:29the Trump signed the space executive
54:31order. So, that is a massive catalyst.
54:33Like,
54:34Trump signing it, we want to be a leader
54:36in space, we're going to be investing
54:37into these companies, and then there was
54:39also another thing, and that was Elon
54:41Musk was floating the idea of taking um
54:44IPOing SpaceX at an absurd valuation.
54:48And so,
54:49what do people think? They're like,
54:51well, if that's going to happen, I need
54:52some space exposure. And this executive
54:54order signed, so two like big catalyst,
54:58and this had a perfect setup. Had a big
54:59move up, pulled back to the moving
55:01average. You can see like how important
55:04that
55:05this level was right here. You know,
55:08rejected here. It rejected here. This
55:11was a breakout right here, and then
55:13where is it finding support? So, this is
55:15like an undercut reclaim setup. You have
55:17two tight candles on little volume, and
55:20I bought this right here, and volume
55:22started to tick back up. And so, you
55:24see, typically best trades work right
55:27from the start, right? And so, you get
55:29that, and so now this fits all the
55:30criteria.
55:32And it starts moving out right from this
55:34area. We're looking at, you know, a, you
55:37know,
55:3960-70%
55:4050 plus move off this level with a very
55:43tight stop. And then again,
55:45I the market was a little bit more
55:47shaky, but again, looking back on this,
55:50this could have been an entry right
55:52here, right? You this is kind of like
55:53your a little cup and handle base.
55:56Big move up, pullbacks that left side
55:58high.
56:00Found support at the rising 21 EMA, and
56:03then shot back up. And again, um it
56:05still gave a good move, right? A 30%
56:08move in a couple days is a good trade.
56:10Not everything's going to turn into a
56:11monster, and that's why we sell some on
56:13the strength. And then now,
56:15sold some on the strength on the way up.
56:17And actually yesterday, I sold it. Um
56:19it's breaking breaking the 21 EMA. Now
56:21it's falling through to the downside
56:23today. And I was watch I was
56:25backstopping some of the position with
56:26the 74 level. And there was more
56:29confluence is this white line right
56:31here, 74, was the 10-week moving
56:34average. So,
56:35to me, the stock just needed a little
56:37bit more time, but looking forward, this
56:40could provide another entry. Um the
56:43market's
56:44got the market environment's gotten
56:46worse, so these high beta names can be
56:49less likely to work, but
56:51you know, what would be another
56:52potential entry is if this put in a
56:54little base, reclaim 74, you have
56:56another undercut reclaim. So,
56:58>> True, yeah.
56:59>> these stocks provide tons of
57:01opportunities along the way, and you
57:03don't have to be
57:04in the stock the whole time to catch it.
57:06There's
57:07plenty of trade opportunities throughout
57:09the move.
57:10And so that is Rocket Lab. And what had
57:12what did we have extra conviction on
57:15that supported the space theme? Planet
57:17Labs, another one that we traded. And
57:19all these trades I'm talking about,
57:20these were ones that we traded um in
57:23TurboTax and bought for clients. So, I
57:25wanted to give some real-life examples
57:28because
57:29I could see some people saying, "It's
57:31hindsight when you see that." But it's
57:32not. You can see this stuff real time,
57:34then you utilize the setups to get into
57:37the stock. So,
57:38Planet Lab, as I'm sure people are aware
57:40now, what do we see here?
57:43We have just a massive base, massive
57:46consolidation.
57:48So, we'll go to the weekly, and we'll
57:50put the weekly. So, this is the 10-week
57:52and 30. So, we have a massive base.
57:54Could this be bottoming? This is
57:56bottoming out, but I'm not going to be
57:57interested because look at the slope of
57:59the weekly moving averages. You have
58:01They're all out of whack. The 10-week's
58:03below the 30 and the 40-week. And again,
58:05like we said, it's going through the
58:06supply and demand characteristics. And
58:09then, boom, out of nowhere, we have
58:10highest volume ever on in December.
58:14The 10-week got back above the 30 and
58:1640-week. So, automatically, this stock
58:18is worth watching on radar, and we will
58:20get into the and we'll narrow it down to
58:23the daily chart, and we'll talk about
58:26what this was, and this was
58:28an earnings gap. This was an episodic
58:30pivot. And what this was was
58:32This was [clears throat] highest volume
58:33ever on an earnings release. And that's
58:36big, right? Coming out of a long period
58:38of neglect, they had They recorded free
58:40cash flow for the first time ever. They
58:42had huge backlog. And just like the
58:44satellite space
58:46theme was growing in interest. And then,
58:49so,
58:50could have bought this earnings gap,
58:51potentially. I wasn't involved with the
58:54stock, but again, we can just go through
58:56this, right? Could have bought this
58:57earnings gap. Maybe you get stopped out,
58:59but this undercut gap day's lows. And
59:02another I'll mention another uh key
59:05setup that is the same thing as as the U
59:08and R. I actually watched Ariel's Chart
59:10Fanatic episode, and it was awesome, and
59:12he talked about this, but this is the
59:14high-volume close reclaim. So,
59:17>> Yeah.
59:17>> 6 5, the close was 596.
59:21And again, that's the easy level to risk
59:23off. So, if you don't want to buy the
59:25earnings gap, this is again a a
59:27variation of the under gun reclaim
59:28setup, but it's reclaiming that high
59:30volume close because that's a pivotal
59:32spot in the charts, a key pivot point,
59:35and so that's notable. So, fast forward
59:38had an earnings gap, has another
59:40earnings gap, had um
59:42had free cash flow, again had a record
59:44backlog. Um I believe this was a double
59:47beat and raise. Look how linear this
59:49moves. If you even on this day, um it
59:53was up 35%
59:55and again, what are most people going to
59:57think? I I don't want to touch it. It's
59:58too extended. But we're looking at the
1:00:00structure of the stock and where it's at
1:00:02in its life cycle, and to me it's not
1:00:05that extended, although people are
1:00:07scared to buy strength, right? Everyone
1:00:09says
1:00:10buy low, sell high. How about buy high,
1:00:12sell higher? That's that's kind of my
1:00:14philosophy.
1:00:15And what did this do? This gave an
1:00:17amazing amazing trend. Wasn't involved
1:00:21with this. And again, some people would
1:00:23say, "Oh, Connor, this stock's gone from
1:00:25two to 18 and you haven't even been
1:00:27involved. Like this the move's probably
1:00:29done."
1:00:30Not necessarily. And then we have
1:00:32another earnings gap on huge volume,
1:00:35double beat and raise, and this is in
1:00:38TurboTax and we bought this earnings
1:00:39gap, right? Bought the 5-minute opening
1:00:42range with a stop at low of day.
1:00:44>> Uh
1:00:44>> And following that, one of the examples?
1:00:46>> Yep. Literally as simple as it gets,
1:00:49right? And it's not
1:00:51you know, real time and it's obviously
1:00:52not the easiest thing in the world, but
1:00:54it's like Planet Labs, well, I'll just
1:00:56give you waking up in the morning,
1:00:58Planet Labs is gapping up on earnings. I
1:01:00see space stock are strong. This is
1:01:02clearing a key left side high, had a
1:01:05period of neglect, right? Into the
1:01:06earnings. You buy the 5-minute opening
1:01:09range break, stop at low of day.
1:01:11This gives no pressure, pulls back here
1:01:13again, but again, sticking with the
1:01:15stop, not not breaking the rules. And
1:01:18what do you get? You get another super
1:01:20linear because
1:01:22I saw this earnings gap back here and I
1:01:24saw that I missed it. So, I said, "If
1:01:26this gaps up again, based on previous
1:01:29chart history, it shows it can trend
1:01:31linear and it had a double beat and
1:01:32raise. So, I said, why wouldn't I try
1:01:34this? At worst, I lose, you know, 5 6%
1:01:38you know, less than 1% of the AUM.
1:01:40Versus, what can I get? Multiple
1:01:43multiple multiples on my risk and this
1:01:45moves up 70%."
1:01:47And like I've shown in recent examples,
1:01:50we're selling into strength and then
1:01:52again, the market's been weakening. This
1:01:54breaks this little shelf here. The
1:01:56character of the stock is changing a
1:01:58little bit. It's making lower highs,
1:02:01lower highs.
1:02:03Look at the slope of the moving average
1:02:04starting to roll over. So,
1:02:07the stock's not like I mean, this could
1:02:09be a long-term secular top. I've no
1:02:10idea. I don't really think so. I just
1:02:11think the market's showing me the price
1:02:13action that this might be going into a
1:02:15basing period or a longer consolidation
1:02:18and we're looking to compound our
1:02:20capital. So, again, I got knocked out of
1:02:22the last trailing piece and then again,
1:02:25I'll watch this for another variation of
1:02:27the setup.
1:02:28>> In terms of selling into strength, is
1:02:29there any criteria that you follow uh to
1:02:31do so? Or is there a criteria that
1:02:34generally is good practice?
1:02:36>> Yep, absolutely. So, um if you look at
1:02:39stocks, typically, the first three to
1:02:41five days, again, this is a principle
1:02:43that I learned from Pradeep Kumar
1:02:46Aggarwal. And again, this whole
1:02:47superstock criteria, this is like on the
1:02:50heels of the greats above me. I'm not
1:02:52reinventing the wheel. I just added a
1:02:54little flair of myself and just tried to
1:02:57make it my own, what fits with my
1:02:59personality. But, um Kumar Aggarwal and
1:03:02Pradeep
1:03:03did the same thing. They studied all
1:03:04these different stocks and they found
1:03:06that in the first three to five days,
1:03:08that's typically your high momentum run.
1:03:10So, after that, it could slow down. So,
1:03:14you can finance your risk in the first,
1:03:16you know, three to five days and it
1:03:17varies. So, sometimes if a stock's more
1:03:19extended in its life cycle, I'll look to
1:03:21sell some in strength right away. If I'm
1:03:23catching it out of a big base or in
1:03:25earnings, sometimes I will just say,
1:03:27"I'm going to sell half on the first
1:03:29daily close below the 10 SMA."
1:03:31>> Got you.
1:03:32>> Um and it it just takes like what I'm
1:03:34looking at, but again, if you're a
1:03:36beginner and I was going to give you,
1:03:38you know, you know, advice, I would say
1:03:40you're going to buy these setups, you
1:03:42would just say
1:03:44trail on the first close below the
1:03:4610-day simple moving average and you'd
1:03:48be surprised that how many people
1:03:51couldn't follow this because they let
1:03:52their opinions get in front of the
1:03:53market. And that brings me to another
1:03:55example of like the turtle traders. He
1:03:57was a systematic trend follower and he
1:04:00got people from all different walks of
1:04:02life. People that did well was, you
1:04:04know, the the garbage man, not the
1:04:06surgeon because they thought they were
1:04:07smarter than the market.
1:04:09>> yeah.
1:04:09>> And
1:04:10>> That makes sense.
1:04:10>> And then another way is ATR extended
1:04:12from the 50-day moving average. Once a
1:04:14stock reaches 10 ATR above the 50-day
1:04:17moving average, that is extreme
1:04:20extension. It can continue going higher,
1:04:22but the is more likely chance that it
1:04:25starts to pull back and that that's
1:04:26another good
1:04:28thing to use. And then after selling
1:04:30some into strength, I'm going to sell
1:04:32the rest on weakness, whether that be a
1:04:34break of a support, a moving average
1:04:36that I'm trailing with and whatnot.
1:04:38>> When it comes to this
1:04:41philosophy, if you will, of observing
1:04:44stocks in the cycle.
1:04:45>> Yep.
1:04:45>> Um two two questions. One first is
1:04:49what are the key things that when you
1:04:51first start to learn and identify and
1:04:52try and apply these
1:04:54uh this viewpoint,
1:04:56what was something you wish you knew
1:04:58back then that would have helped you
1:04:59maybe overcome some hurdles or have a
1:05:01better understanding or better action to
1:05:05take that you now understand?
1:05:07>> Yeah, so
1:05:09when I first started,
1:05:10I had no market awareness. So, I thought
1:05:13it does regardless of what like the
1:05:15general health of market is,
1:05:17I these setups aren't going to work in a
1:05:18weak tape. You know what I mean? If the
1:05:20indexes are in a downtrend, um you know,
1:05:23there's not many leaders to trade like
1:05:25yeah, they could set up, but but they're
1:05:26not really going to work. They're going
1:05:27to have a much lower win rate. So, to me
1:05:30it's just developing like a market
1:05:31awareness model. And I as I've developed
1:05:35over the years, it's gotten a little bit
1:05:37more complex. But again, like if I had
1:05:39to say if I had to tell someone what's a
1:05:41simple market monitor that you can use,
1:05:44it would simply be
1:05:46is the Qs above a rising, you know, 21
1:05:49EMA or 50-day? These are going to be
1:05:51your best opportunities to make money.
1:05:54And again, and then we look here, this
1:05:56has just been in a big base. And again,
1:05:58there's been pockets of strength like I
1:06:00covered memory space stocks and some and
1:06:03some other things. Let me
1:06:06But on balance, there's been a lot of
1:06:08weakness. And that largely is due to the
1:06:11fact like we're just in a big range. And
1:06:13moving averages aren't as relevant in
1:06:15here. But again,
1:06:17so to say, the market's in a big range,
1:06:19it's not conducive
1:06:20>> I think undercut rally.
1:06:22>> Yes, exactly. And that would be the way
1:06:24to get in, right?
1:06:25You have
1:06:26>> [laughter]
1:06:26>> Exactly. And undercut
1:06:28>> Interesting.
1:06:28>> undercut rally, I'm not going to dive
1:06:30into this, but it's same thing as failed
1:06:32breakout, right? What did this give you
1:06:34here? An undercut rally. This is just
1:06:36inverse Qs.
1:06:38>> Okay, I got it.
1:06:39>> Did that answer the question? Um
1:06:40>> Yeah, yeah, I know it did. And there's
1:06:42the second part of the question was more
1:06:43so
1:06:45when now applying this like now,
1:06:47>> Yeah.
1:06:47>> what are the main hurdles that come to
1:06:49mind
1:06:50when trying to be effective in in its
1:06:52execution? Is there anything that kind
1:06:54of is something that you have to
1:06:56is not a constant, maybe a problem, but
1:06:58more so a constant
1:07:00thing that you really have to be sort of
1:07:02aware of or manage
1:07:04uh in terms of trying to execute this on
1:07:06a on a regular basis.
1:07:08>> Yeah,
1:07:09so one is
1:07:11being
1:07:13Executing this on a regular basis is
1:07:15being
1:07:17selective. And this isn't like directly
1:07:19answering your question, but it kind of
1:07:20comes in as in being selective in the
1:07:22sense of you only want to trade the best
1:07:24merchandise.
1:07:26Um and really the hardest part, I would
1:07:28say of executing this is sometimes
1:07:30a stock can look extended, like I said.
1:07:33>> Yeah.
1:07:33>> It it really can look extended. And what
1:07:36have people been saying for a while?
1:07:37Like, right? We look at the long-term
1:07:39chart. Like, the market's been up for
1:07:41quite some time. But, again, always
1:07:44understand when I'm taking the I always
1:07:46understand when I'm taking these setups
1:07:48before I buy the stock, I know what I'm
1:07:50willing to risk. So, even if I'm not
1:07:52Sometimes
1:07:53I'm not feeling confident about it, and
1:07:55I might hesitate, but I just need to be
1:07:57like, this is matching all my criteria.
1:07:59I'm going to try it, and if it's
1:08:01smaller, that's fine, and I know what
1:08:03I'm willing to lose if it doesn't work.
1:08:06Not I'm not going in thinking, "Oh, I
1:08:08think Sandisk is going to go to $700." I
1:08:10I never thought that. And
1:08:12and when I bought it at 135,
1:08:15I can't tell you I I had how many people
1:08:19are like, "You're buying Sandisk up
1:08:20here?" Like, yeah, I was. And now it
1:08:23doesn't look That didn't look very
1:08:25extended. But
1:08:26>> to kind of you have to go against maybe
1:08:28how you feel and generally, especially,
1:08:31and that's usually the case, what the
1:08:32sentiment or what other people's
1:08:34opinions or perceptions are.
1:08:35>> Exactly. No, that that's You described
1:08:38it really well because I can I can vi-
1:08:40vividly remember
1:08:42I I was like I was, you know, talking to
1:08:44the team and some traders that I talked
1:08:46to. I'm like, "Sandisk is a perfect
1:08:48high-tight flag." They're like, "It's
1:08:50insanely extended." And I was like, "It
1:08:52is, but, you know, so yeah." Not
1:08:55hesitating and trusting the work that
1:08:57I've done and that when I think I found
1:09:00potential winner, take it. And if if the
1:09:03market's shaky, then you size down or
1:09:05you don't take it, you know, using that
1:09:06awareness. I have a couple that I really
1:09:09like. So,
1:09:10Bloom Energy is one of my favorite.
1:09:13>> What?
1:09:13>> Sorry, I was
1:09:15I was in I'm invested in Bloom.
1:09:16>> Oh, nice. Awesome. So,
1:09:19>> Whenever I see anyone about you're the
1:09:20second person on Chart Pattern I
1:09:21actually mentioned it, so it makes me
1:09:23feel I don't know actually maybe if
1:09:24that's a sign to get out now, I don't
1:09:25know.
1:09:26>> Yeah, well,
1:09:26>> I'm messing around.
1:09:27>> I don't I don't own it anymore, so
1:09:29you're good there.
1:09:30>> [laughter]
1:09:30>> I don't know if that's good or bad
1:09:31actually following the the expert, you
1:09:33know.
1:09:34>> Um so, this is like one of my like
1:09:37favorite favorite examples because
1:09:40we have a 7-year base. What was the big
1:09:43theme of the market as around when this
1:09:45the bottleneck for energy for data
1:09:47centers?
1:09:48So, what stocks are what can we what
1:09:52what stocks can we trade that captures
1:09:53that theme? Bloom Energy stands out
1:09:55initially. And again,
1:09:57this isn't hitting my scans in this base
1:10:00at this time, but we're looking at this
1:10:03when I see it, I look at this base and
1:10:04say, "Okay, this stock's been doing
1:10:06nothing for 7 years. If it breaks out on
1:10:08a catalyst, it has the opportunity to
1:10:10really move." And so, at this time it
1:10:13also had 30% short interest. Again,
1:10:15which to me just adds conviction to the
1:10:17narrative. I remember
1:10:19I mean, a 7-year breakout with 30% short
1:10:21interest, like who who
1:10:23>> What does that mean? 30% short interest?
1:10:24>> So, it just means percentage of the
1:10:26float that's short. So, 30% of the float
1:10:29was short. And
1:10:31to me that just
1:10:32people that were short seemed way off
1:10:34sides. And if the stock started to move,
1:10:36they're going to have to get out. So,
1:10:37again,
1:10:38people might ask, "Well, Connor, in this
1:10:40base, this isn't hitting my scans."
1:10:43You're right until this day right here.
1:10:45And why did this hit my scans? Because
1:10:46this was a catalyst on highest volume
1:10:48ever. And this was a gigawatt fuel
1:10:51agreement agreement with American
1:10:53Electric Power. And what did this do?
1:10:56This
1:10:57traded up what was it? 60% on 500% above
1:11:02average volume. And again, people are
1:11:04like, I 60% in a day is a crazy move,
1:11:07right? And the character of the stock
1:11:08was still super choppy and it was still
1:11:11inside the base. So, I saw this catalyst
1:11:13and when I see these and if I don't
1:11:15think they're ready, I just tuck them
1:11:16away in what I call my universe
1:11:18watchlist. So, that I'll monitor
1:11:20throughout the day on the weekends and
1:11:22check in like how are these stocks
1:11:24developing. So, this it's on my radar,
1:11:26it's on my universe watchlist.
1:11:28And then again, it has another gap up on
1:11:31almost highest volume ever. Now, this
1:11:33time it's breaking out, it's gapping out
1:11:35of a base on volume, on a catalyst and
1:11:38this catalyst was they it was a
1:11:40partnership with the Oracle to power
1:11:42data centers. And again, this was up 22%
1:11:45on five on, you know, 3-400%
1:11:49above average volume. So, to me this
1:11:51isn't your Aunt Sally buying Bloom
1:11:53Energy. This is a change in character
1:11:56because
1:11:57Wall Street has to re-rate the stock. It
1:11:59had a legitimate catalyst and the
1:12:01volume's there to confirm.
1:12:03>> Yep.
1:12:03>> And I didn't buy it I didn't buy it on
1:12:05this gap either. Um, for whatever
1:12:08reason, I think this was the perfect
1:12:10entry to get into this stock. And then
1:12:12so,
1:12:13at this point I need to get into Bloom
1:12:15Energy. I want to find a way.
1:12:17>> Yep.
1:12:18>> And so, it continues to trend and at
1:12:20this point it's showing linearity. And
1:12:22then right here, August 22nd, I took
1:12:25this short flag break. You can see it
1:12:28had a big move up, linear, and then it
1:12:31undercut this kind of this gap and this
1:12:3410-day moving average, and then I bought
1:12:37this breakout at around 45, right over
1:12:40prior day's high. So, we're talking like
1:12:434% risk in a stock that is a very
1:12:46fast-moving stock. And so, then it
1:12:49continued to trend quite nicely. It rode
1:12:52the 10-day moving average very nicely
1:12:55and I I sold a lot on this gap down
1:12:57below the 10-day moving average and I
1:12:59don't remember exactly, but sometime in
1:13:02this area, I believe here, I was all out
1:13:04of the position.
1:13:05Um but and then again
1:13:08I never got back involved. I know people
1:13:11but it did show some some setups, but to
1:13:13me at this point
1:13:14it was trading too erratic and this was
1:13:17just too
1:13:18Of course, in hindsight, we can say this
1:13:21was kind of a base breakout. This was
1:13:23also, right? You kind of had
1:13:25kind of an undercut reclaim in this
1:13:27setup, although it didn't undercut it.
1:13:29Um but it kind of held this low, which
1:13:31was a pretty pivotal spot, right? Had
1:13:33volume.
1:13:33>> What about to the left there?
1:13:35>> Right here?
1:13:35>> Yeah.
1:13:36>> Yeah, this is also another one and
1:13:38that's was probably
1:13:40the best entry because, right? We
1:13:43were looking left on the chart. This was
1:13:45kind of a breakout. It held this spot,
1:13:47held this spot and then yeah, right here
1:13:48was a pretty good spot. And when I
1:13:50talked about the undercut rally, look
1:13:52how tight these two candles got on low
1:13:54volume. And this was during the holiday
1:13:56period, so
1:13:58that's also a reason why. So, it's kind
1:14:00of tougher to say, but this came back
1:14:02through and yeah, and it gave you a nice
1:14:05run depending on what your
1:14:08on what your uh system was rules, you
1:14:10know, you should be a winning trade
1:14:12regardless. And now it's pulling back to
1:14:14the 21 and you know, this could set up
1:14:17you know, potential
1:14:18undercut reclaim or pull back to
1:14:20ascending moving average, but and
1:14:22and they have earnings coming up also.
1:14:24So, that's Bloom Energy. I just want to
1:14:26cover a couple more big themes. If Do we
1:14:29have time?
1:14:29>> Of course, yeah.
1:14:30>> Awesome. So, what I've showed so far is
1:14:33like more so of like the fundamental
1:14:35stocks that had fundamentals, but what I
1:14:37want to talk about now is the theme at
1:14:40the big thematic run. So, in a hot
1:14:42market you every every hot market cycle
1:14:45you have a group of stocks that I call
1:14:47like it's a science fiction theme,
1:14:49right? Quantum computing is like 10
1:14:52years away to say the least, but why are
1:14:55people buying these stocks? Because
1:14:58they're buying based on the potential of
1:15:00quantum computing stocks moving forward
1:15:03and hype alone can drive stocks
1:15:06like so high.
1:15:07And again, like thing why I changed
1:15:10because you know, I
1:15:12the strict CAN SLIM criteria, you can
1:15:14you can never touch a quantum because
1:15:16there's no
1:15:17no quarterly earnings, no annual
1:15:19earnings growth that they lose money and
1:15:21again, these were like the worst of the
1:15:24worst stocks in the whole way. Everyone
1:15:27wanted to short them, but look at how
1:15:29many amazing opportunities that these
1:15:31gave and I'm just going to focus on this
1:15:33opportunity, but the same thing
1:15:35happened, you know, you had so many you
1:15:38had a huge consolidation and just look
1:15:40at the great opportunity trading
1:15:42opportunities that you had, you know,
1:15:44you had multiple entries. This was a
1:15:46perfect flag break.
1:15:48>> Yeah.
1:15:48>> Um think it's just, you know, what
1:15:51really where I got this was from
1:15:53Qumagie and he talks about it.
1:15:55It's so simple. You have a big move up,
1:15:57you have a pullback, you have an
1:15:59undercut, you build a higher low, you
1:16:01get tight and you have an expansion
1:16:04a breakout that day. Simple enough and
1:16:07so and again, um primarily I'm looking
1:16:10to position trade, but you know, these
1:16:12shorter term swing trades can be great
1:16:14for compounding and you know, you can
1:16:16buy a stock, right? You get, you know,
1:16:1830 40% in 5 days, you're selling most of
1:16:21it and leaving a little for
1:16:24for what could happen, but what I want
1:16:26to narrow down is is this setup right
1:16:28here because to me like
1:16:30I actually didn't catch it, um but these
1:16:32were like some of the perfect setups
1:16:35I've seen, so
1:16:37one, it fits all the criteria and at the
1:16:39same time, you know, how I mentioned
1:16:40like chart theme?
1:16:42>> Yeah.
1:16:42>> So, this was this was uh September 12th.
1:16:46So, let's look at what the other
1:16:49Quantums were doing at this time.
1:16:529 12. Doesn't this look like the exact
1:16:54same chart as IONQ? What about QBTS?
1:16:58Doesn't this look awfully similar at
1:17:00September 12th? And then
1:17:02that what I mentioned earlier is the
1:17:04leader laggard. Q- QUBT was the laggard
1:17:07because, right? This was uh 9 12.
1:17:11Um this never made a new high and
1:17:14obviously when it tried to break out,
1:17:15that's failed breakout. But, we're going
1:17:16to focus on IONQ. And again, you have a
1:17:19strong group. You're in a very strong
1:17:21momentum market. September of last year
1:17:25was extremely hot for themes. Like, they
1:17:27were running left and right and
1:17:29and although these had no fundamentals,
1:17:31you just had like the most perfect
1:17:33year-long base. You had an easy line and
1:17:36you got you had tightness on the right
1:17:37side of the base kind of forming that
1:17:39handle. And then again, look at the
1:17:41breakout confirming with volume and you
1:17:43get a very strong multi-day push never
1:17:46breaking the 5 SMA. And then another and
1:17:50then at the same time, there was another
1:17:51big story thematic group running at the
1:17:54same time. And that was Oklo. And again,
1:17:57this one is similar to Quantum. It has
1:17:59no fundamentals. It makes no money.
1:18:02Their product is 10 years away, but what
1:18:05was the big macro theme of the market?
1:18:07It was energy for AI. People are going
1:18:10to This was the high beta high flyer of
1:18:13that. It was basically the momentum
1:18:14trade. Like, you had your leaders that
1:18:16were like GE and BE. This was your high
1:18:18beta name, which can give great swing
1:18:20trades. Um and again,
1:18:23it almost virtually had the same setup
1:18:25as the Quantum names. Kind of same. It
1:18:28had a big multi-month base and you can
1:18:31see how it tightens up on these moving
1:18:33averages on the right side. And the the
1:18:35before it really started, that was like
1:18:37one of the tightest candles
1:18:39of [snorts] the run, and you can see it
1:18:41gave a really nice move. So, those are
1:18:42examples of, you know, more so thematic
1:18:46story stocks and whatnot, and that
1:18:49just because they don't have earnings or
1:18:52or um or sales growth, right? And
1:18:54they're not making money.
1:18:56The the the duration of the moves aren't
1:18:57going to be as long, but the velocity
1:19:00and speed in which they do them can be
1:19:02really fast. Like, these aren't going to
1:19:03trend for eight beaten raise quarters,
1:19:06most likely, but you can get kind of
1:19:08like performance booster swing trades in
1:19:10these periods.
1:19:12So, that was Quantum. There's a couple
1:19:14other another big one
1:19:16um cuz I by this time I assume all the
1:19:18viewers understand the criteria, so I'll
1:19:21be a little bit quicker on this.
1:19:23MP was another one, right?
1:19:26This day right here, 7/10, you had
1:19:28Department of Defense announce a
1:19:30multi-billion dollar
1:19:32um what was it? Partnership to
1:19:35accelerate
1:19:36production of rare earth magnets, and
1:19:39this was highest volume ever out of a
1:19:40long long period of consolidation, and
1:19:43this one was one that was
1:19:45pretty much a scratch trade for me. I
1:19:48you can see the setups. I tried I want
1:19:50to show this because not everyone works.
1:19:52Not everything works, and
1:19:54um and like I said, like our win rate is
1:19:56fluctuating between, you know,
1:19:5830 and
1:20:0030 and fit maybe 50% in a super hot
1:20:03market, and you know, we had your gap
1:20:05up, your EP per se. I remember I tried
1:20:08this out of this flag break
1:20:10consolidation. You had your two tight
1:20:12days, and it started to merge out. Very
1:20:14weak run. Came back in. I remember I you
1:20:18know, I sold the rest for break even
1:20:20around here, and then it offered me
1:20:22another setup that cuz I still like the
1:20:25I still like the stock. I liked
1:20:27I liked the characteristics. Maybe my
1:20:29timing was just wrong. And that's
1:20:31another thing is never be afraid to try
1:20:32to buy something back. You might feel
1:20:34like stupid like I bought something at
1:20:37100, I sold it at 95, and then I bought
1:20:40it at 110. But that's fine, you know,
1:20:42maybe you're just early and it needed to
1:20:44chop down. And then so this this was the
1:20:47pullback to the first touch the 50-day
1:20:49moving average and it built an extremely
1:20:51tight range right here. Right? To me
1:20:53this is like institutions accumulating
1:20:56and then you got this big move up and I
1:20:59trimmed some and ended up being, you
1:21:00know, a scratch trade as it broke back
1:21:03below this kind of pivot level. And then
1:21:05at this time, so this was per se your
1:21:07liquid leader and then simultaneously
1:21:11you had USAR which was like the high
1:21:13beta name and this was breaking out of a
1:21:16huge base on volume and a strong theme
1:21:19and this gave you a pretty crazy, you
1:21:22know, triple-digit gain in a matter of a
1:21:24couple days and there were some other
1:21:26names
1:21:27moving with it. CRML, huge move. Um
1:21:31UAMY, huge move. And um TMC was another
1:21:35one just off the top of my head. So like
1:21:37all this group was moving in tandem and
1:21:40and then once they started to top out,
1:21:41kind of the few the theme for these rare
1:21:44earth stocks kind of died down.
1:21:47>> What's the relevancy of like when the
1:21:48market's all hot and we're seeing
1:21:50volatility and there's ample
1:21:52opportunities? Like how do you then
1:21:54start to filter which ones you are
1:21:56willing to take and which ones, even if
1:21:58they still fit the criteria, look like a
1:22:00great sell opportunity and have a good
1:22:03uh you know, reward to risk ratio to it
1:22:05as well. Yeah, how do you kind of
1:22:08dictate which ones to take then right in
1:22:10those moments?
1:22:11>> So that's a really good question because
1:22:14I've had times where the market's super
1:22:16hot and I'm overwhelmed in terms of like
1:22:18it's so hard to keep track with all
1:22:20these like high movers and in a strong
1:22:22momentum cycle
1:22:24this all the what also this framework
1:22:26gave me is anyone can kind of throw a
1:22:28dart and make money, right? But in a hot
1:22:30market, if you want outperformance, you
1:22:32need to be in the best movers. And so
1:22:35that's obviously what prompted me to
1:22:36have this criteria, but so say I'm going
1:22:38into a trading day and I have Bloom
1:22:40Energy, SanDisk, um RGTI, IONQ all
1:22:45setting up and I and I have cash or say
1:22:47I have 20% cash. If Bloom and they all
1:22:50fit my criteria, if Bloom Energy kind of
1:22:52like triggers first, like the capital's
1:22:54going to go there.
1:22:56Um if and then if GEV triggers, the
1:22:59capital's going to go there. And then so
1:23:00kind of like what looks ready to go
1:23:03immediately. But again, like anything,
1:23:05I'm going to miss a lot of stocks all
1:23:07all the time. Um I'm just trying to put
1:23:10myself in a position to have the odds
1:23:12stacked in my favor and and be in the
1:23:15right one. But yeah, that that's
1:23:17definitely
1:23:19you know, a challenge in itself. And
1:23:21it's just kind of how the market cycle
1:23:23works. You have that challenge and then
1:23:25when the market sucks, it's you can't
1:23:27even find the stock you even think about
1:23:29buying.
1:23:31Uh
1:23:31>> And how do you keep track as well in
1:23:33terms of I know you mentioned about some
1:23:34you might look at the weekend and keep
1:23:36track in the Do you say it's the
1:23:37universe sort of stock list if you will
1:23:39or watch list?
1:23:40>> So.
1:23:41>> Yeah, so how do you how do you look to
1:23:43one identify, I know you mentioned the
1:23:44scanner earlier.
1:23:45>> Mhm.
1:23:46>> And then two, keep track, you know, once
1:23:48something is on your radar, yeah, what
1:23:50does that process look like for you?
1:23:51>> Great question. So
1:23:53to me the weekends are very important.
1:23:55The market's closed. I have a clear
1:23:56mind. I can just really sit down. It's
1:23:59quiet. I'm not worrying about the market
1:24:02and I can
1:24:03look at stocks. And so I have I I I use
1:24:06MarketWatch Surge for my screening and
1:24:09it's pretty simple. So I I have a bunch
1:24:11of different scans like, you know, price
1:24:13performance, some earning sales growth.
1:24:15I look at the top industry groups and I
1:24:17group all these stocks into a big watch
1:24:20list and then I go through all of And
1:24:22then, so when I'm going through these
1:24:23stocks, I sort them by industry group.
1:24:25So,
1:24:26I do it in alphabetical order. So, every
1:24:28weekend, like the aerospace and defense
1:24:30group is first, and I have like a
1:24:32two-panel. I have my charts that I'm
1:24:34looking at, and then
1:24:35I have on another screen, um like just a
1:24:38Word document, and I have these groups,
1:24:40and I say, "Okay, there's Kratos,
1:24:42Karmen, FTAI." I'm just rambling, like
1:24:45different aerospace, and I put them on a
1:24:46list, and so I'm like, "Okay, I'm seeing
1:24:49like eight to nine aerospace and defense
1:24:51stocks with similar chart patterns
1:24:53showing relative strength. I need to
1:24:55watch this going forward." And so, I go
1:24:57through the whole watch list, and I make
1:24:59what I call like my thematic watch list,
1:25:02and I typically like to tweet it every
1:25:03Sunday. Pe- people like it quite a lot.
1:25:05Right. It ta- It takes me some time, and
1:25:07then
1:25:08and then in that list, I will go through
1:25:11them and kind of see what I think's
1:25:12actionable and ready. And then, you
1:25:14know, during the week, um you know,
1:25:16watching the markets all day, so I'm
1:25:18reading the news. I'm I'm pretty in
1:25:20tune. I do this for a living, right?
1:25:22We're managing portfolios, so I can read
1:25:25a lot. I can stay with it more than some
1:25:27other people that say they're working a
1:25:29job.
1:25:29>> Cool.
1:25:30>> And then, I keep a monitor with all
1:25:32these groups, and
1:25:34it's like I can just like during the
1:25:36trading day, I can just see like where's
1:25:37money going in, where's money coming
1:25:39out, and it gives me a fe- a feel for
1:25:41the market and like what I would say
1:25:43like
1:25:44what sectors are leading the market. And
1:25:46then, you know, through those list, I
1:25:49then have my universe watch list that I
1:25:51think names that could be actionable
1:25:53coming up. And then, every night before
1:25:55the market open, I have my actionable
1:25:58focus list. I try to always premeditated
1:26:01trades only, and that's just due to the
1:26:03fact that you're virtually sitting in
1:26:04front of the casino all day. So, if you
1:26:06have this alert going off, this alert,
1:26:08no plan, you're just going to buy it
1:26:10randomly with no plan, and night before,
1:26:13I have my plan, and I
1:26:16obviously there's set And then like the
1:26:18earnings catalyst setups I'm watch I'm
1:26:20scanning in the morning cuz those are
1:26:22happening in the morning or after hours
1:26:24and then I'm just trying to only um
1:26:27take pre-meditated trade trade setups.
1:26:29And yeah, that's kind of my process. And
1:26:31like I said, and then every night I go
1:26:33through all these lists. I go through my
1:26:35universe watch list. I'll run a couple
1:26:37like up on volume scanners to see like
1:26:40if something catches my eye. And then
1:26:42it's about making my focus list and you
1:26:45know, having a plan for the next day.
1:26:46Yeah.
1:26:47>> Both of that. So, the next ones I want
1:26:49to talk about is how you can apply this
1:26:52to um it doesn't have to just be stock,
1:26:55right? This this setup occurs in
1:26:57commodities,
1:26:58everything. And it's just
1:27:00there's not necessarily earnings growth,
1:27:02but there's a catalyst. And to me gold
1:27:05and silver
1:27:06again, they they hit every criteria. So,
1:27:09we zoom out to the monthly and I'm going
1:27:11to make this a log scale real quick so
1:27:14it can see so it zooms out. So,
1:27:17this is like one of the like the most
1:27:19obvious
1:27:22This was an extremely obvious pattern.
1:27:26This was a decade-long cup and handle
1:27:28base.
1:27:29>> Yeah, I remember that.
1:27:29>> Enlightening this. I remember I remember
1:27:32what the sentiment was for when this
1:27:34broke out and it was people were saying
1:27:37this is too obvious. Everyone from here
1:27:39to Hong Kong saw a decade-long cup and
1:27:43handle base, but um and again, this gold
1:27:47moves quite linear out of long-term
1:27:49patterns and just kind of the character
1:27:51of this stock.
1:27:53Literally dead money for over a decade
1:27:55until it wasn't. And how and then this
1:27:58was your clean break out here out of
1:28:00this
1:28:00>> Yeah.
1:28:01>> 10-year cup and handle weekly monthly
1:28:03base. And I'm going to take log scale
1:28:05off.
1:28:06And so, this provided so many different
1:28:09entries along the along the way and
1:28:13basically what what the big driver was
1:28:16for for commodities and you know, it's
1:28:18really like the debasement trade. People
1:28:21the dollar was falling off a cliff.
1:28:24People needed somewhere to
1:28:26they needed a store of value for their
1:28:28money and gold made a lot of sense. And
1:28:31so you have that is a is a pretty big
1:28:32catalyst and again,
1:28:35you know, um the AI race this
1:28:37administration is all in or nothing to
1:28:40win and really the debt is just going
1:28:42parabolic. So feel like I need I need so
1:28:45I need hedge per se cuz the dollar. And
1:28:47so that that was really your catalyst.
1:28:50And 2020 about early 2024 was when this
1:28:54move really started. And again, the
1:28:56narrative wasn't as strong,
1:28:58but you just had a really clean base
1:29:00breakout like simple good above this
1:29:02line, bad below and it never revis
1:29:05revisits this breakout level the whole
1:29:07time. And so it keeps
1:29:10gives a huge trend again, right? This is
1:29:13a huge move for gold and obviously you
1:29:15can trade GLD's the ETF, but in terms of
1:29:18like ATR and liquidity gold there's so
1:29:21many products you can trade, right? You
1:29:22can trade futures, which is huge
1:29:24leverage. You can trade options and then
1:29:26you have like levered miners like tons
1:29:29and tons of different mining stocks that
1:29:31made huge moves as well. But for for
1:29:33this we're just going to go over the
1:29:34ETF. And this was um this was another
1:29:38perfect multi-month base. Look how tight
1:29:41it got. Look at the moving average is
1:29:42extremely coiled.
1:29:44Um bounced off the 50-day moving average
1:29:47and then, you know, again,
1:29:49it looked extended here, but, you know,
1:29:51it continued to go higher and I had a
1:29:53couple trades. I owned gold a couple
1:29:55times back here, but really I got
1:29:58involved again on this base breakout.
1:30:00And again, it's 2 years into the move,
1:30:02but it set up a pretty nice pattern and
1:30:05And is when we finally started to go
1:30:07parabolic. Um I think it was like 12 ATR
1:30:10above the 50-day moving average.
1:30:12Sold some on the way and I sold the rest
1:30:14on this break and no idea where gold
1:30:16goes now, but sentiment indicators were
1:30:19flashing and then also
1:30:21like gold is trading like almost like a
1:30:23meme stock right now. This is
1:30:26unprecedented volatility right now and
1:30:29>> It means in line though with like as you
1:30:31say the sentiment globally that we seem
1:30:33to be in a very
1:30:35interesting position. Like the US seems
1:30:37really strong at some points.
1:30:39>> Yep.
1:30:39>> And then sometimes it feels extremely
1:30:41weak and
1:30:42and that seems to be quite a interesting
1:30:44flow we keep seeing
1:30:45>> Exactly.
1:30:46>> over recent year or what? Say recent
1:30:47years, maybe the last 12 to 24 months.
1:30:50>> Mhm.
1:30:50>> This uh peaks and troughs, it's it's
1:30:53obviously leading to something uh either
1:30:55you know, more strength to the dollar
1:30:57eventually or whether something uh
1:30:59transitions. Obviously that would be a
1:31:00dramatic transition. The Ray Dalio
1:31:02transition, right?
1:31:03>> Changing world order, right?
1:31:05>> But it seems like you're right. So like
1:31:06gold and silver's moves
1:31:08you know, it's kind of reflected
1:31:10sentiment out there.
1:31:11>> Yep.
1:31:12>> And then you see
1:31:13obviously countries and and their gold
1:31:15stockpiles.
1:31:16>> Yep. Yeah, in particular like China and
1:31:17Russia for example.
1:31:19>> Yep.
1:31:19>> Um accumulated so much and then I think
1:31:21they restricted exports around the time
1:31:23when they started going parabolic as
1:31:25well. So there's all these factors and
1:31:27I'm bearish. I'm far from like a macro
1:31:30or a fundamental sort of base trader.
1:31:32>> Right.
1:31:33>> if I know that, that means that the
1:31:34people who do know, probably you and and
1:31:36the the likes who are more in the
1:31:38trenches and and really ingrained into
1:31:41you know, the research and the
1:31:42understanding.
1:31:43>> Yep.
1:31:44>> probably know a lot more deeper
1:31:45deeper levels and layers to the
1:31:47conversation.
1:31:48>> Yeah, and and that brings me to
1:31:51something I want to also touch on is
1:31:53you know, I'm I'm talking about like the
1:31:55fundamental, the story and stuff that
1:31:56I'm looking for. Now with AI, this is
1:31:59like you know, you can do it very quick
1:32:01and it's not like for
1:32:03I'm not reading through 10 Ks. I'm not,
1:32:05you know, making up my own model. It's
1:32:07really just about, you know, having a
1:32:09general thing, like what you're just
1:32:11saying about gold. It didn't take a
1:32:12genius to put together that, and when
1:32:14you couple that with the chart, you
1:32:15know, you kind of have some conviction,
1:32:17and and you have some like edge to make
1:32:20the trade.
1:32:21And then silver, same thing, right? You
1:32:23had a massive, massive base um
1:32:26during this times it started break out,
1:32:28like the gold to silver ratio, um was
1:32:31that like a record? It was like at a
1:32:33point where it typically silver tends to
1:32:35start to outperform. So, you just had an
1:32:37enormous base.
1:32:39I'm seeing gold breaking out. It's
1:32:41logical to think that silver might join
1:32:43the party, and I
1:32:46in [snorts] turbo taxation
1:32:49I bought silver right around here.
1:32:51Same setup, again.
1:32:52I didn't have it back here, but to me I
1:32:54wouldn't really I wouldn't have held
1:32:56through it was it was very choppy,
1:32:57right? I want the linear linear
1:33:00>> Run of the move, yeah.
1:33:01>> Yep. And so, what do we get here?
1:33:03Big move up, we're getting super
1:33:05compressed, price is getting coiled. You
1:33:08know, your volume's drying up, simple
1:33:10breakout through this line, and for for
1:33:13silver, I mean this is a huge, huge
1:33:16move, and then again
1:33:19or and then again it it puts in another
1:33:22perfect base, and this is also like a
1:33:24VCP base, which is just some
1:33:26characteristics that you'll find in the
1:33:28base. So, we look at this first
1:33:30pullback.
1:33:31It's about, you know, 15% We we look at
1:33:34this second pullback, it's about 6%, and
1:33:37then on the right final contraction of
1:33:39the right side of the base
1:33:41range is getting tightening, and to me
1:33:43that's like supply and demand.
1:33:45Um you know,
1:33:47the there tends to be a lot of demand
1:33:49for the stock if it breaks out. It gave
1:33:50you another perfect base breakout.
1:33:53Again, insane move for silver, and um
1:33:56was selling across the way and on this
1:33:58day I sold the rest of the silver cuz
1:34:01same thing with gold. Unprecedented
1:34:03volatility. Um, had already a massive
1:34:06trend. You know, how much meat are we
1:34:09looking to take off the bone at this
1:34:10point in the move?
1:34:12And yeah, definitely a polarizing a
1:34:14crazy
1:34:16you know, a crazy move in the markets. I
1:34:18know a lot of people that were really
1:34:20trying to short these for a while and
1:34:24you know, the trend Right, yeah. It was
1:34:26I don't think anyone had on their bingo
1:34:28card
1:34:29gold and silver doing this. And then
1:34:31another thing that you kind of just said
1:34:33in terms of group, right? We have copper
1:34:35breaking out of a massive base. We have
1:34:37palladium. Look at this run on
1:34:39palladium.
1:34:41Um, or sorry, that was platinum
1:34:42palladium and then, you know, we can end
1:34:44on what's going now.
1:34:47XLE, which is energy out of a
1:34:48decade-long base and is this going to
1:34:51play catch-up to some of the other
1:34:53commodities? We shall see.
1:34:54>> We shall.
1:34:55Connor, it's been an absolute pleasure
1:34:57and and what a step-by-step process, you
1:35:00know, really indicating how we should be
1:35:02thinking and following the markets, you
1:35:04know, on a even if a position and and
1:35:07swing trading, it really is open to all,
1:35:09even if you're not like a
1:35:11well, one of a professional money
1:35:12manager.
1:35:13>> Yep.
1:35:13>> Whether you're
1:35:14um, you're trading large capital or not,
1:35:16whether you day trade, this is actually
1:35:19something that will help you alongside
1:35:20that. Um,
1:35:22to really increase your wealth and
1:35:24increase your understanding on uh, the
1:35:27sort of macro and stock side of things
1:35:29because I think anyone who is day
1:35:30trading, you know, futures, forex,
1:35:32whatever it may be, you should be
1:35:34understanding this cuz this is as
1:35:37simple in the sense that, you know, in
1:35:39in a lot of these uh, you know, futures
1:35:41traders out there got such complex
1:35:43intraday systems and well, this is
1:35:46literal chart patterns and breakouts and
1:35:49volume and
1:35:50a lot of the time you will have, just
1:35:52from being a trader, a understanding of
1:35:55themes, a good understanding of the
1:35:57temperature of the market.
1:35:58>> Yeah.
1:35:58>> So, this is how you can, even on the
1:36:00side, as a trader, really elevate your
1:36:03overall net worth over a compounding
1:36:06result over time. And this is the system
1:36:08that's going to allow you to identify
1:36:10those super cycle stock
1:36:13journeys, if you will. And again, it's
1:36:15just you know, a great point by Connor
1:36:16there. You don't need to get the bottom.
1:36:18>> Right.
1:36:19>> That's ideal.
1:36:19>> Right, but
1:36:20>> Yeah, you don't need to get the bottom.
1:36:21You If you end up, you know, by
1:36:22understanding the general sentiment of
1:36:24the market, and it may seem extended,
1:36:26you can still get some really great
1:36:27returns. Cuz even as we talked about, a
1:36:29couple hundred percent returns a year
1:36:31is, you know, amazing.
1:36:33>> Yeah.
1:36:33>> Even if it was, you know, you're getting
1:36:35a good base hits of 20, 30%. They all
1:36:38compound.
1:36:39>> Exactly.
1:36:40>> Um so, it's absolutely incredible,
1:36:41Connor. I'm super, super excited to get
1:36:43this out there. Everyone at home, drop a
1:36:44comment with your biggest takeaway from
1:36:46this episode. Any questions you might
1:36:47have, throw them in the chat there.
1:36:49We'll check them out. Uh but, make sure
1:36:51you hit like. Make sure you hit
1:36:52subscribe. Other episodes are on screen
1:36:54right now. We'll probably have Ted's
1:36:55episode, and probably Pradeep episode
1:36:57right here on screen, so you can check
1:36:59those out. But,
1:37:01links for Connor will be in the
1:37:02description below. This has been Chart
1:37:04Fanatics. Take care.

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