Looking ahead to the End of the Year Opportunities? — Transcript

Full transcript

1. 0:00[Music]
2. 0:06Hello guys, the boxer welcome to this
3. 0:08new video. So today we're going to be
4. 0:10covering what's the correlation between
5. 0:12the overall market and the penny stocks
6. 0:14and also I want to go over the recent
7. 0:16tickers that has been running and some
8. 0:19of the patterns that I discovered. So
9. 0:21by the way we have a new course that's
10. 0:22going to come out in February. Make sure
11. 0:25check out that course. It's called
12. 0:26traders Edge. The pre-sale is going to
13. 0:28end about the end of this month. Other
14. 0:30than that let's get into the video. So
15. 0:31we have one CPI that came out really
16. 0:35pushed the market.
17. 0:37Basically the market rallied about 5%.
18. 0:40The reason I want to talk about overall
19. 0:42market is what I noticed is on every
20. 0:45single spike there were different
21. 0:48runners that's going up. So during this
22. 0:51spike I think was the GME AMC spike. A
23. 0:56massive run up into a bounce short. Then
24. 0:59during this spike we had BBBY the meme
25. 1:02stock. So into this spike we will
26. 1:05probably have something one of the
27. 1:07massive runners going to come up. So
28. 1:08opportunities will come
29. 1:10during market rallies. And from my take
30. 1:15the overall market the current
31. 1:18conditions for the general market is
32. 1:21as the first there's going to slow down
33. 1:24the rate hikes but they're not
34. 1:26I would say pausing or cutting the rate
35. 1:28hikes. The financial conditions are
36. 1:30still not as
37. 1:33great compared to this massive QE
38. 1:36from the Fed. So this rally is probably
39. 1:38going to be temporary and into this
40. 1:40rally
41. 1:41to the end of the year we're going to
42. 1:43have something to play with.
43. 1:45Definitely tickers trading tons of
44. 1:47volume and what I noticed in this market
45. 1:49is during each of those rallies volumes
46. 1:52are massively different compared to the
47. 1:55market is going into a downturn. So the
48. 1:58volume differences between the market
49. 2:00going down compared to the market going
50. 2:02up is drastically different. So make
51. 2:06sure always use the data when the market
52. 2:08is going up and use the data when the
53. 2:10market is going down. For example
54. 2:13when the market started rallying in July
55. 2:15to August the volume is trading anywhere
56. 2:19between 100 million to 200 million. So
57. 2:22you have to use
58. 2:23the same data
59. 2:25into this spike as well.
60. 2:28And of course going to the opposite when
61. 2:29the market is going to a downturn then
62. 2:32you want to use the same data that when
63. 2:34the market is downtrending.
64. 2:36This is one of the I would say patterns
65. 2:38that I found out starting of the year.
66. 2:41So the statistics that I found out
67. 2:43specifically
68. 2:46into this year when the market is going
69. 2:48to a downtrend
70. 2:50the volume is really low. Basically it's
71. 2:51not really tradeable
72. 2:53unless you see a very ideal bounce short
73. 2:56with a massive volume comparison. But
74. 2:58when the market is on an uptrend
75. 3:00the average dollar volume is around 1.5
76. 3:04billion. So if the stock is around $10
77. 3:06you're looking at 150 million shares
78. 3:08being traded.
79. 3:09If the stock is around $15 then you're
80. 3:13looking at 100 million shares going to
81. 3:15be traded. So do the math that's pretty
82. 3:17easy. So what we had this week we had
83. 3:21DWAC. This is the trade that I placed a
84. 3:23couple days ago. So
85. 3:26we had a gap up fade all the way down
86. 3:30then formed its neutralize area around
87. 3:3220. This is where I shorted it into the
88. 3:35next day as it gapped down. So you
89. 3:37consider it as I would say not a great
90. 3:40overextended gap down but I waited until
91. 3:42the consolidation to be formed. Shorted
92. 3:44around I think it was around 20 between
93. 3:4626 to 27.
94. 3:49And I was going to ride it down
95. 3:51but that weird spiking afternoon
96. 3:54made me cover. So I actually lost a very
97. 3:58small amount. I think I covered around
98. 3:5920 anywhere between 27 28.
99. 4:02So from my take on this trade is when
100. 4:05the when the stock's neutralize area is
101. 4:07really high. So typically a gap up short
102. 4:09fades 75% from the top. So you can see
103. 4:13DWAC faded about 75%
104. 4:16when it spiked to 30.
105. 4:18So
106. 4:19your max reward will be 21. Whenever you
107. 4:22are shorting around 26 27 your covering
108. 4:25point has to be above the neutralize
109. 4:27area. So you're looking at 23 24 to
110. 4:30cover which into this trade there is not
111. 4:34much risk reward. So that's the mistakes
112. 4:36I kind of made but it was not much size.
113. 4:39I noticed that the neutralize area is
114. 4:41pretty high so that actually destroys my
115. 4:44risk reward especially a ticker that
116. 4:47only went up 60%. So that was a very
117. 4:50small loss but going forward into DWAC
118. 4:54this respect again. So if this one can
119. 4:57push through the 29 dollar area this
120. 5:01DWAC might actually go up to 60 because
121. 5:04once it breaks through the
122. 5:06consolidations then this consolidation
123. 5:08area will become a massive support.
124. 5:11It traded around 30 million shares
125. 5:13around I would say 27 28. So you're
126. 5:16looking at a 1.5 billion support
127. 5:20around
128. 5:2230 dollar area.
129. 5:23And
130. 5:25once it breaks through the 30 dollar
131. 5:26area you have to wait until
132. 5:29the stock doubles from the support area
133. 5:32to be able to consider it it's a
134. 5:33shortable stock. So
135. 5:36be patient on DWAC. I think
136. 5:37opportunities will be coming
137. 5:39into the next few weeks. So for PIXY uh
138. 5:43massive resistance only around the 65 68
139. 5:47dollar area. I don't quite remember it
140. 5:49somewhere not that high.
141. 5:51Then we have a falling resistance around
142. 5:5439 around 8 million. So typically on a
143. 5:58low volume ticker
144. 6:01when the stock only trades under 1
145. 6:03million shares throughout the day and
146. 6:05also spike over 50% these type of
147. 6:08tickers are very difficult to trade. You
148. 6:10have to wait until the volume comes in
149. 6:12especially going into the resistance and
150. 6:15the starting point it has to be the
151. 6:18volume came in around later later of the
152. 6:21day around let's say 19.
153. 6:23This one has to go up at at least 100%
154. 6:27from this
155. 6:30low volume zone which is called
156. 6:31neutralize area. So it has to go up to
157. 6:3438 to 40 before it's considered to be
158. 6:36shortable. Whenever you see a ticker
159. 6:38like PIXY and HKD these type of tickers
160. 6:41are very difficult to short into. So
161. 6:43wait until the volume has to be at least
162. 6:47very least 5 million shares
163. 6:49traded throughout the day before you
164. 6:51place an order. Other than that not much
165. 6:53going around other than DWAC and PIXY.
166. 6:55So hopefully we have more plays not
167. 6:58coming into the next following weeks.
168. 7:00That'll be the end of this video. Thank
169. 7:01you very much for watching. I will see
170. 7:02you guys in the next one.