US Healthcare Stock Up 220% in 24hrs...

What's up everyone? All right, this morning we have a stock that is currently up 220% but it was not easy to trade. That's a little frustrating. So the stock ended up making a big move after hours and then most of pre-market it was rangebound. It wasn't breaking out. I mean it was popping up and there were just an unbelievable amount of sellers that were holding it down. In fact, there was a couple times it popped up and then what seemed like a market order went through. Even though there's not market orders pre-market, you can still do a marketable limit order and the stock just flushed down. So, let's go ahead and jump onto the screen share and start breaking it down. The ticker in question is NWE. And you could see right now it's actually at high of day and I'm putting myself on the bench. I'm not taking any more trades on it. So, you can see I've I've got some profit on it, but this was not easy to trade at all. and I gave back profit off the top because I added into the highs thinking it was going to keep going and then it knifed back down. So, this is a stock number one that is not on short sale restriction. So, we can see right here that it is hard to borrow. It's not easy to borrow like Ford. Ford is easy to borrow. You can short this no problem, but NWE is hard to borrow. So, if I go into my short request window here at Lightseed, I'll pull this up for you so you can see what it looks like. um you can put in a request to short shares. So they have to locate the shares for you and then it's going to come back with the prices on the shares, how much it would cost to borrow them. So right now it's searching the different vendors that are available and these are the prices to borrow. Holy smokes, 82 cents a share, 75 cents a share, 50 cents a share. So this is very expensive to borrow. Okay. So, if it's expensive to borrow, we would typically conclude that there probably won't be a lot of short sellers shorting it when it costs 80 that that costs more than 10% to short it. It's $6 a share. So, if you're going to spend 60 cents per share to short it, it's cost there's the drop. See that drop? Do you see that candle? How in an instant 800,000 shares went through and it dropped 60 cents a share. That is exactly what's been happening all day today on this one. And it is really frustrating. So, I don't think those are actually short sellers selling the stock to go short. I think that that's the company selling shares to raise money. Now, I could be wrong, but that's my suspicion based on the price action that we're seeing. Now, if it was on short sale restriction, that would completely eliminate the possibility that it could be a short hitting the bid. Because when a stock is on short sale restriction, shorts can only short on an uptick. So, putting out limit orders on the ask. they can't hit the bid and cause that flush. So, it could be short sellers, but given the cost to borrow, I'm just not sure if that's really what's going on. So, let's look at the chart in a little bit more detail. Well, first of all, it's a US company, as you can see right here, US healthcare medical equipment, blah blah blah blah. Interestingly, they actually put out a headline at 8 a.m. Um, the stock otherwise has just been, you know, one of these stocks that caught a bit after hours and squeezed up, as you can see here, from $187 all the way up to 280. This is not one of those stocks that boom had breaking news and just suddenly surges with half a million shares of volume. This is a stock that just kind of started creeping a little higher, a little higher, and then suddenly, you know, traders notice, hey, this thing's up 50%. They jump in for the break of 280. It goes to 3, 320, 340, 360, all the way up to 380, up to $4, dips down, comes back up, double top, pulls back, closes here after hours, pre-market, pops up, and then pulls back. pops up and pulls back. So, all of pre-market basically this thing wasn't working. And then out of nowhere, you get this big candle. I didn't see this coming. It just I was watching and all of a sudden it shoots up. And so, by the time I saw it, it was at $5 and that's where I took my first entry. So, I got in this at five and I punched it right away. 15,000 shares starter position. I was like, I'm going in on this thing heavy. I added 15,000 shares. Then, I added another 15,000. It goes to 513 and 523 and I kept adding. We ended up getting a squeeze here all the way up to a high of 565. Took some profit off the table then added back. We got the pop up towards six and then it flushes down on me through this area. I took a few trades and then I just gave up. I was like, you know what? This thing is just it's not working. The MACD eventually crossed into the negative right here. And this was the last big rejection where I was like, "Nope, that's it." Yeah, we had a huge one here, another one there, and I just said, "No, you know what? I'm done. This is this is not happening for me." So, at the open, seeing it break this trigger, this pivot of 534, the level I was watching is a little annoying because I had that on watch. But, I watched it. I watched it at the open and even in spite of it coming up to that level, I just kept saying, "It's not worth it. this was the price we had that last big rejection and it was up here that we had the first one. it could happen again and you know so anyways I I just felt like this is one of those stocks that for whatever reason maybe it's insiders selling maybe it's the company selling maybe it's shorts at the end of the day it doesn't really matter it's heavy it's not easy there's better things to trade well actually today there weren't so I guess that means that's it right now I did trade PN PN popped up on our scanners this morning and kind of like DFNS uh is that the ticker. I'll pull that one up in a second. Um, you know, squeezing from 12 up to 16, pulling back up to 18, pulling back. I took one trade here and lost five grand. I took another trade up here and made like a 100 bucks, so I'm down $4,900 on it. It just unfortunately, even though it's the second leading gapper, it only has 3 million shares of volume right now. It had less when I traded it. So, I felt like it was obvious because it was the second leading gapper, but it didn't get enough volume. and without volume, people weren't paying attention to it. All eyes were on NU and sometimes that's just the case that all eyes are on a stock that I might not really like, but um you know, look, I mean there's it is what it is. So, you know, that's just the way it goes. Now, DFNS, by the way, this stock has made an unbelievable move. If we look at the daily chart, it went from $3 a share up to a high of well, the high was actually $100 a share. That's 2,600%. I should probably grab a screenshot of this one. I'm going to switch to a longer time frame so the screenshots a little easier to read. We'll make it a 15minute chart. Let's see what that looks like. So, you know, there it is. Um I mean that's that's unbelievable. That's I mean it's not unbelievable. We see this often enough. But but it's beautiful. It's definitely beautiful. Um sometimes you can't believe a chart could be so pretty. Um uh that reminds me of the American be remember that movie American Beauty just so much so much beauty in the world. I just can't handle it. So much beauty in this chart. I just can't handle it. That's that's what that's going to be the the next movie. It'll be a Wall Street version of American Beauty. Um but maybe not quite so creepy in certain parts. Anyways, doesn't matter. So this Yeah, I mean this this was a big move. So, I'm just going to add this to my um dock of um so 2,600% move in five days. Amazing. Unbelievable. Just huge. So, peaked today at $108 a share, but you know, I even though I did take a trade on it yesterday at 39, uh which was kind of annoying because by the end of the day, I saw it went to $96 a share. Um I didn't take any trades on it today. At a certain point, you just have to accept volume is declining, liquidity is getting worse, and your only hope is that shorts are forced to cover in a low liquidity environment, and they push the price up by buying, you know, 100,000 shares. But that hasn't happened uh really beyond what we've seen so far. So, at this point, today is um you know, a little bit of a miss. It's not um not a big not a big day, but at the same time, I'm at 1x my hot market daily goal. Hot market daily goals is $20,000. I'm at $20,000. Yesterday I was at 23,000 or 22,000. So let's see. Then Monday and Tuesday was up 32,000, lost 32,000 between Monday and Tuesday. So those two days cancel each other out. So now I'm sitting at about 44,000 43,000 on the week. Considering last week I was up over 100 grand, um this feels like, you know, a little slower, but it's still um a really nice uh way to kind of be wrapping up the month of July. And then just like that, we're going to be going into August. Now, August historically not always the strongest month. It's summer. A lot of people are traveling or whatever. Although, you know, it's so hot. I don't know why sometimes you would even bother traveling during the hottest time of the year, but whatever. kids don't have school and so families are away. Sometimes it's families and you know the you know people that some of those people that have families are also the people in their 40s or 50s who are extremely wealthy who trade with huge amounts of money. So when they're not in the market, you know, and you multiply that by all the people in that same category, then the people left are, you know, kind of those um scraping the bottom of the barrel with smaller accounts and just chipping away at this and that. when the whales leave uh the I don't know harbor so to speak, we'll notice the waves smooth out a little bit and that's not always a good thing for traders because we want the waves of those big whales. We want the volatility that they create. So, we'll welcome them back. Uh but that's also a generalization that August is slow because that's not always the case. the market is a little seasonal but very cyclical that we go through hot cycles and cold cycles and most likely if someone's an active trader and they recognize the market's hot they're going to be they're going to be trading even if they're traveling internet's good enough at this point that people don't go to the Hamptons and then just only use a fax machine and a pager I mean they have fiber in the Hamptons so anyways that's it for me uh locking up a green day here and hoping that we can finish um the week and finish the month of July with another green day tomorrow but I would also Also, I suppose give you the reminder that if you've so far had a decent month, there's no reason screwing it up on the last day of the month. Lock in the green month. Green months are important for self-confidence. So, you know, I'm a big advocate of locking it up, you know, getting in, getting green, getting out. And I guess that's a good reminder of um, you know, you guys checking out this book. Listen to it if you're going to be driving around or traveling this summer. Get it on audiobook. quit. The power of knowing when to walk away by Annie Duke. I recommend this book all the time. I reference it in my own book. And um it's a good read. Walk away sooner. Really, it's going to help you. Just walk away sooner and stop looking. Don't torture yourself and watch what things do after you get out. Just get out. Come back tomorrow. All right. So, with that, I hope you guys have a great rest of the day. But reminder, as always, trading is, you know what I'm going to say, it's risky and my results are not typical. And there's no guarantee you'll find success whether you trade with me or you learn on your own. So manage your risk by practicing in a simulator before putting real money on the line.