Shorts Keep Getting Squeezed!

What's up everyone? All right, in today's episode I'm going to break down my trades from the morning. I am on my traveling trading station, the mobile command center, one laptop, my USB monitor, the microphone, the camera. I've got everything I need here to trade on the go, which is nice. Highspeed internet is probably the most important variable, and I've got that as well. Now, I locked up my profits this morning on the early side. I didn't want to overstay my welcome, but this is definitely one of those hot markets where I feel like I'm struggling between not wanting to give back profit, but also feel like maybe I'm leaving a little too much money on the table. So, today we ended up having yet again another stock that made a huge move, and it's like shorts just keep getting squeezed day after day after day. It's it's kind of incredible that we keep seeing people shorting some of these stocks. I understand on the one hand that many of these stocks are squeezing up have no true catalyst. They don't have any fundamental reason for the stock to be up 300, 400 or 500%. And so logically, a week from now, maybe two weeks from now, certainly a month from now, the stock will probably be back at the price before this big move. More likely than not, the company may also very likely take advantage of the fact that their stock price is up so much and sell additional shares on the open market. Now, there's a couple different variables at play here. One is the proposed rule change with NASDAQ that and the SEC that any company with a market cap of less than $5 million for 30 consecutive days could face being delisted. Now that rule was approved and then it was put on a a pause stayed pending a full review by regulators which will take months if not longer could even take a year. So we sort of thought that if that rule well the rule was approved for like 5 days before it ended up being paused now for this um you know full review. But we thought maybe these companies, some of them would be motivated to try to push their stock price up to make sure they were above a $5 million market cap so they wouldn't get delisted, you know, even if it was just for a day because that would reset the 30-day, you know, timer. Uh, but since that is no longer really a factor, I I don't know how to explain why these stocks are making such big moves. um you know, you could the some of these companies could be um sort of behind the moves and they're really wanting to see their price go up. Some companies engage uh PR um firms to put out good news about the company and do this promotional campaign to try to increase public awareness and get people to buy up the stock. Some of these companies may be subject to, you know, WhatsApp, Telegram, scam groups who are doing pump and dumps. They're accumulating huge positions and then putting out the notice. But even if that were the case, I wouldn't really expect the stock to hold its level because usually when that is the case, the price goes up and then it comes right back down. It it just doesn't usually hold. So, there's a number of possible variables. Um, at the end of the day, we may never really know why some of these stocks are going up as much as they are and why some are continuing to hold up uh even when they have no news. But as a momentum trader, this is volatility. It's what we like. And so, of course, I'm happy to trade it. CLRO is actually the stock that I made the most money on today. It's currently up 324% as you can see right here on the scanners. But, interestingly, Y WHG was our biggest percentage move. So this stock, this is this is actually fascinating to me. It's a Chinese company. Um Wing Yip Food Holdings Group, consumer staples, food, restaurants, stuff like that. You know, this is not typically what we would expect u to be a strong um sector for a big move. And right at 4 in the morning, this is sort this really sets the stage in an interesting way. So, at 4 in the morning, the stock pops up, as you could see here on the one minute chart, from a low of what was it? Um, $3.62 all the way up to a high of 12.82. And it did it on a total of about 50,000 shares of volume. So, 50,000 shares of volume, that's it. And the stock goes up, you know, 300% or whatever it was, and then it comes right back down. Now, that to me looks more like a possible WhatsApp scam. I mean, I have no way of knowing that cuz I haven't heard anyone say that it was the case, but that looks more like what we've seen in the past where the stock gets jammed up and then comes all the way back down. Now, that can happen sometimes when a company actually puts out news and initially the market reacts positively and then people kind of flip directions and they're like, "Wait a second, the news isn't that great." Sometimes there's a knee-jerk reaction and then a quick reversal. um you know but nonetheless there was no catalyst there was there was no headline um or new you know new breaking news from the company that supported it going up there at 4 in the morning so it pops up quickly reverses round trip and so on the one hand when I sat down at 7 in the morning which is um zooming forward here to let's see about this area I sort of thought you know ah yes it popped up but isn't it really evident that it just sold all the way off and Yeah, somehow it was able to rally from three back up to 10, which is a big move. And then it comes back down again. And then it pops up here at the VWAP. 600,000 shares of volume in those uh or 1.2 million 600,000 shares per candle there. And then it sells off again. Then it comes back up again. And so I did trade this, but uh it wasn't until after the opening bell that it finally pulled away. And again, the stock has no catalyst. So why why did it pull away here and it didn't pull away over here or in this area? And I think really that is because you know the stock had a chance to trap short sellers. So people probably shorted even at 4 a.m. this first move. Stocks popping up with no news. I'm going to short it. Comes back up here. Maybe they add to the short position for a fade back down. It breaks VWAP. Shorts are in control. It popped above VWAP for a second. Then it goes below it. shorts are still in control. Then it pops back up here. It does a rejection, you know, sells off. Feels like, yeah, this thing's not going to work. And at the time, right here at like 8:40, CLRO was uh squeezing higher. So, CLRO kind of took the attention as you could see right here. Um, right at 7 a.m., we got this big squeeze and then this is the stock that was mostly in focus. This was the stock that I thought was going to make our six 700% move today, but ended up being YH or WYHG. So, that's interesting as well. So, CLRO, let's talk about this one first since the one that I actually did the best on. So, this began its move yesterday after hours. Okay, so CLRO, this is a US company. Um, now let's just double check. I'm just going to confirm with the address. Um, uh, let's see. Yeah, so this is a US company. Um, we have traded this one before. It's not the first time that we've seen it come up on the scans. Um, but it ended up popping up yesterday. Let's see. So, the squeeze began I think it was right at the closing bell that this thing began moving. Let me just double check that. So, boom. Um, so was a little bit a little bit later. It's like 5:25. Um, so this ends up popping up here. And we're just going to check over here. So yeah, you had this 13D um shouldn't really look very closely at, but um so oh the warrant cancellation agreement, right? So in any case, this starts popping up um and it ends up being the leading gainer uh going into um you know, after hours. it goes from, you know, $3 all the way up to eight. It pulls back and then right at 4 in the morning, it pops up to 9 and then sells off. And so I kind of thought, you know, coming into the 7 a.m. sort of unofficial beginning of pre-market, at least for retail traders, I didn't really think a lot about this. Um, but then suddenly it rips up right here. So this is how I approached it. As it started to squeeze up right there, I pull up the chart. I look at the 10-second chart because it's the first one up. And I pull up the level two. And as soon as it has started to squeeze, let's see. Uh, we got to go back here. So, right here, back this up or zoom in. Um, I'll give you I'll have you take a guess at where you think I got in. Micro pullback right here. So, I bought um as it popped back through seven. That was my first trade on this. And I got um I unfortunately got a lot of partial fills on this one. So if I go back to my first orders, um I was getting filled down here on CLRO at um 7.89, 787, 790. A lot of partial fills, partial fills. Um but I got in right about here and we got this squeeze all the way up to $9.80. In total, I had about 12,000 shares and I scaled out on the way up and made about $6,000. And now you can see my P&L for the day. 37,000 in the green. So, made about $6,000 on the first trade on CLRO. I'll just sort this by the stock I made the most on. Um, and then it pulls back here. We get a little bit of a dip down. So, I take my profit. I'm out uh selling at like $850, a little bit at $9, the rest like uh 870s. And then it dips down here. And I'm kind of like, all right, well, you know, can I really trust this? was what's this going to do? It drops all the way back down to eight and I'm like, "Wow, this thing is really heavy. I don't know." And then it rips back up right here and I end up getting back on this little bull flag uh for the breakthrough 10. And we get a squeeze all the way up to 1080. Awesome. So, I'm in and out of that. Now, I'm up 14,000 on the day. It pulls back again. We had this push all the way up to 11. Uh it dips down and right through here, I'm taking each one of these breakouts. So, I got this little breakout here, this one right here, this one right here, this one right here. They didn't all work out super well, but just continuing to kind of stack up a little bit of profit, you know, making my way further into the green. So, then we get this test of a high of 1236 and um unfortunately what ended up happening was it could not hold over 12. And that trade up there was a little bit of a close call for me because I sized up for the break of 12 and then it hits a high of like 1230 and flushes back down. So I was like, uh, that's not great. It comes up here, goes to 13, and then it rejects again. I'm sort of like, all right, this feels like it's not really working super well. Now switching over to the one minute chart. So now we have a clear peak up here at 13, but the MACD was negative. So this one right here because the MACD was starting to go negative. I I was a little bit like I don't think this is going to work down here. The MACD is negative. MACD is negative. And then it starts to curl back up right around here at 8:45. It pulls back, but you could see this area. I I kept trying to catch that trade and I was looking for a break through 12. Was it uh 12:40 right here and this was my last trade on it where I got in um at about 12. Yet again, it goes up to 1240. It knifes back down. And I got out narrowly avoiding uh a loss. And so, you know, through trading it, I got myself up $26,000, which is good. Um and I that's, you know, was my high a day on it. I didn't end up giving back profit um from that point, but it was a little bit um it I I felt like it was just not pulling away, but I thought, you know what, at the opening bell, I bet this thing's going to work. Um, but I didn't trade it past the 9:30 opening bell. One of the reasons is not wanting to be really stuck in halts because of the way the halts, at least this week, some of them open a lot higher, some of them open lower, some of them open flat and then flush and then you're instantly in a halt down. I felt like I can't control my risk quite as much trading uh after the open because of halt levels and how quickly these stocks can get halted. So anyways, I thought CLRO would be the one because at that time WYHG while it was the second leading gainer um you know had pulled back a little bit. I had tried to take this trade right through here and I had I did break the ice on it. Um we got this curl right through here. We got this break of VWAP and then this one and so I traded as it was breaking over VWAP and I was able to lock up 10 grand but then as you see right here you had this big rejection. So I kind of wrote it off. I was like I don't think that's going to work. And so then at the open when it halted up I was like manh. And then it showed a high resumption, second halt, high resumption, a third halt, then it sells off, halts down, gaps lower, then it does three more halts going up, halts down, then even after a halt down, it opens high and pushes higher. Then it halts down again right here. Then it opens, then it halts down again. Then it opens, then it halts up. I mean, this is very hard to manage risk on these backto-back halts. But nonetheless, the stock ended up going from $3 a share to 26 bucks. Unbelievable. And then it ended up rolling over into the close. And who comes back into the picture? CLRO. CLRO ends up squeezing, flushing, and then ripping here through 1050, over 12, over 13, all the way up to 1750. Now, like FCUV and AMIX, I don't really think that this is going to be in play for tomorrow. You know, FCUV gave us this big move um back here. Held up into after hours, but it was like, is it really going to continue pre-market? AMIX, similar kind of thing. Yes, it was strong. Um continued into after hours a bit, but we didn't really think it was going to give us two days in a row. So, I don't think we're really going to get more action on CLRO, but there's no doubt that we are seeing some big momentum. So, right now, NI squeezing up another Chinese company after the bell. Is this going to be like CLRO for tomorrow where tomorrow morning at 4:00 a.m. it continues higher? It may. And so, you know, I'll certainly be watching it. It does have a lower float. Um, you know, it's just hard to know. I didn't I thought CLRO would be the one to make the big move during pre-market and/or regular trading hours. And although we got that initial squeeze, that was kind of it. For the majority of this week, the momentum has been between 8 and 9:00 a.m. This morning, it was a little earlier. Well, 8 and 9:00 a.m. for premarket, and then some of it's continued after the opening bell, as we've seen with these halts. Uh, but this morning the move on CLRO was like right at 7 a.m. Um, WHG or whatever it was, WHG, that move was kind [clears throat] of um I guess it was like 8:30, 8:45 when we got that break of VWAP. But in any case, um, you know, it's just take it day by day. Uh, but I I do still feel confidently that trading pre-market or even after hours if you were so interested is a little bit easier because you don't have to deal with the halt levels. So, you can potentially have a stock that goes up four, five, $6 a share and you could actually trade in and out of that range without getting caught up in a halt. Uh, no trades in the small account today. Yesterday was a really great day, but today I wasn't really feeling it on CLRO because it was a little too expensive. And that first trade was so quick and risky because it was a micro pullback kind of right at, you know, 701. I just didn't have time. WHG. My trades on that were also a little riskier. I wasn't totally sure it was going to work. So, it was okay in the big account, but no trades in the small account for today. Um, but I will be back at it tomorrow morning at 7 a.m. And if you missed yesterday's recap where I went over um my trades uh on the first 30 days of the small account challenge, I'll put a link to that at the end of this episode here that you guys can check out. But let me remind you as always that trading is risky. My results aren't typical and there's no guarantee you'll find success whether you trade with me or you learn on your own. So, please manage your risk by always practicing in a simulator before putting real money on the line. I'll see you guys streaming bright and early tomorrow morning at 7 a.m. for members at Warrior Trading.