ALERT: You Might Want To Avoid Buying This Stock Soon...

Hey, what's going on guys? It's Ricky and in this video I wanted to break down one of the recent trades that I took. Um, I know every Sunday lately I've been doing more of kind of like a almost podcast style video. Uh, I'm traveling. Actually, by the time you're watching this, I'm probably going to be mid race. I'm doing an Iron Man 70.3 in Northern California. So, um, I did want to talk about one of my recent trades. It was actually on Friday. It was one of my biggest trades of the week. um and what I picked up from it. Right? So, I really hope that you learned something new and if you do, maybe you can consider dropping a thumbs up on this video and maybe even subscribing if you feel like I earned it. So, the stock we're going to be talking about is Coree. Now, let me make it very clear. Coreweave is an incredibly volatile stock and that's why we're talking about it. The reason it's so volatile lately is that it went from lows of $58 almost 59, right? ripped up to highs of 117 almost 118 recently pulled on back to lows of 100 and that last gap up was after it reported earnings. Coreweave is not new to this. Cororeweave is notorious for pumping and dumping for pumping and dumping. So again, if you're a beginner, if you have terrible risk management, stay away from coreweave. The reason I want to talk about it is because of what I noticed on Friday, right? So Friday I had a really long drive from Southern California all the way up to Reading, California. That's where my race is. It was about 9 hours long. The incentive behind it was I focused on trading the entire time that I was passenger on the drive. With that being said, it was extremely volatile, but it was a very favorable day. I made a little bit over $9,000. And again, that's a very good day for me. How or why if Coree only ended, you know, nearly 1% in the red? Well, again, not only did we have a great live trading session, so if you're part of my LPP team, you can go back and rewatch it. It was Friday's live session. If you're not yet part of our LPP team, you can sign up right now and watch any previous live session and all live sessions moving forward. So again, we are running a sale. It's the second link in the description down below if you want to check it out. But let me recap it for you. Let me explain to you how this was so volatile. And it's not just on Friday. It went from lows of 106 pumped up to highs of 110. That's a 4% move from 110. It pumped up from the 11030 all the way down to lows of 103. A huge pullback. Again, this is all within one hour of the market being open. Incredibly volatile, right? A 6 percent move down from the current lows of 103 again pumped up to highs of nearly 108. A 4 percent move up from the highs of 108 all the way back down to again lows of 10350. A three almost 4% move. So on and so forth again ripped right back up to highs of nearly 106 all the way back down to 10250 3.5%. And to end the day from the lows of 10250 to the highs of nearly 106 and that was another three to four percent move to a little pull back into the extended hours. That was just the performance on Friday. Again, incredibly volatile. So if you see those moves and that scares you because you often tend to overtrade, revenge trade, again stay away from it, right? Both long or short, it doesn't matter. If you looked at it lately, it's been trading just like this. Not just because it reported earnings, but ever since then, the following day, pumped up to highs of 111 and then retraced all the way back down to lows of 106. Again, fell to lows of 103, ripped up to highs of 11750. Again, a very significant move, a 13% move from the highs of 11750 all the way back down to lows, a 10% move. Now, let me explain to you the big picture, right? from the current highs. If we just pull back to where we were before it reported earnings, that's 15 to 16% downside. If we zoom out, you can see kind of the bigger picture where again, Coreweave is notorious for this. Let me make it very clear. Patterns tend to repeat themselves, but they don't always have to. Coreweave is notorious for ripping and dipping, ripping and dipping, ripping and dipping. Again, it's not that it can't go higher, is that normally it doesn't sustain itself at elevated levels. markets can can stay irrational for longer than we can stay solvent and markets have been incredibly irrational as they've been pushing to new all-time highs. So, it supports these irrational valuations and I'll get to that in just a little bit. But you can't be surprised if markets begin to pull on back that core can pull back as well. And from current highs from the 100, right, 105 to previous lows, not to overall lows, but previous lows, that's 37% downside. This is why on Friday I talked to my LPPP team and this is definitely a stock that I would consider shorting as a swing trade, but I'd be very mindful with my position size. I trade with over $250,000 in my account. My short for this one would probably be 10 to 20K. Again, incredibly risky. So, I want to respect it by giving it less size in the position size, right? But why am I talking about this, right? Well, the one thing that I found very interesting about Coree is when we jump in to do more of a fundamental analysis, I don't understand it. Again, it's incredibly speculative. It's a company that trades at a negative P ratio, negative 30 times its earnings. It's a company that produces $7.5 billion in revenue, but loses $1.9 billion a year. But it trades at a market cap of over 58 billion. It was one of the best performing stocks if I'm not mistaken from from mid to late 2025 to the rip up that it had to 185. I mean, again, we're talking about very accelerated growth of 350%. And now all it's been doing is finding a support within the mid to lows of 60 and ripping up to the highs of 120 to 140. So on and so forth. Strong sell-offs, strong ripoffs, strong sell-offs, strong ripoffs, strong sell-offs, strong ripoffs. It's very important to pay attention to these levels on when to be aggressive depending if you're going long and when to be more conservative. Right? Knowing and picking up on this. One thing that I learned is that again on Friday, because of how volatile this stock is, even though it's just pretty much trading sideways, it's very important to let it push as high as it needs to until we get confirmation of a rejection to allow the selling pressure to kick in. And the same thing with the selling pressure, allow it to sell off as much as it needs to before it begins to indicate signs of a support and then confirming that reversal. so on and so forth. By just working with the overbought and oversold levels, that is what was able to yield me that $9,700 return. And most of these trades were right around, again, it's not a small dollar amount, but $150,000 was the average position size that I was taking with these highs and lows. And again, I wasn't capturing the full thing, right? You might be looking at this and be like, well, you know, from highs to lows, that was a 6% move. I'm not a perfect trader, right? I'm not catching it at the highest level. and I manage my position size. So I might go in with like 25 maybe 50k initially and then I only add more to it as I you know direction becomes favorable and that lowers my average purchase price which is not ideal for my short but again I only feel comfortable adding more to it when direction is favorable. Same thing when going long again I don't buy it at the lowest price level. I might get some exposure down here, but I add when direction is favorable. And then I begin to take profits when we're approaching maybe a previous resistance range. But the biggest focus when trading aggressive moving stocks, volatile stocks like Coreweave, is making sure you do not think that you are going to outsmart the stock. It is an irrational stock, right? You can see it firsthand. It is a company that loses billions of dollars. If you click on the pro research, yes, revenue is growing, but guess what? It's still losing billions. It's still incredibly speculative. If you look into the bare case, again, something that I think more beginners need to do. Net losses have widened, not gotten smaller, widened to $626 million in Q2 for 2026. The full year of 2026 capex is guided between 35 and 39 billion. They're aggressively investing, which again, hopefully it pays off for them. But if it doesn't, this is why 18 out of 30 analysts have rised their EPS, earnings per share estimate downwards over the past 90 days. This is again showing huge concerns about if you actually look into it, their capex alone is 11.5 to 13.5 billion underscoring the capital uh intensive nature of the business and negative free cash flow yield of.24. Again, it's a company that is willing to overspend and right now is experiencing very little return. And during these very uncertain and speculative times, remember when markets begin to correct, these are the companies that crash the hardest if you take into consideration, right? Again, it's not that it can be a bad investment long term. Hopefully, you know, coreweave does end up panning out the way that they are positioning themselves to, but if it doesn't and market conditions get worse, especially as we're trading at overbought levels, right, just like we saw with Bitcoin at 126 um or with Leopold and his memory chip, you know, investments at aggressive overbought levels to not overlever yourself with speculative stocks that when market uncertainty begins to present itself and markets might pull back, it's always the most uncertain stocks that will crash. crash the hardest. So, knowing that it has a history of pumping and then dumping, we're talking about 50% pullbacks, right? Pumping from highs for overall lows, 55% pullbacks. So, it could pump a little bit higher, right? I'm not here to say that core can't pump up higher for sure. Maybe it does end up ripping to 126. Maybe it ends up ripping to 138, right? Based off previous highs. That's very attractive upside. I respect that. We're all here for the same reason. It's to make money. But again, when you take downside risk into consideration, 42%. Downside is much more significant than the upside at the current levels. So what does that tell you? You shouldn't be scared to be invested. You should just be aware of your exposure. So maybe at these overbought levels, you watch your position size instead of going all in or with 50%. Maybe you trim your position to just be make sure that you can tolerate if direction turns against you and it ends up going back to lows of 60 or 65 that you have cash available to actually take advantage of the actual deal because as of right now at these elevated levels if you're trying to buy up here I would say that it's more FOMO buying right because we all know that markets are overbought based off of current technical levels and looking at core based off previous patterns it's at an overbought range. The potential for profit does not outweigh the potential for loss. So I think it's very useful as a trader, as an investor to do these kind of larger time frame analysis and to look into the company and then really ask yourself, is this a bulletproof company that if markets pull back, it won't sell off very aggressively or is it more speculative? And it's okay to acknowledge that because by acknowledging it, you position yourself with your current exposure in a more calculated way. So instead of going in aggressive maybe with 50 or 70% you go in with 20 to 30%. Still some exposure but again protecting or conserving capital just in case direction does turn against you that you're able to take advantage of when the real deals present themselves. You're right. We can't time the market but we can prepare for it. And I think that is what's most important. So again very excited to follow up with Coree to see if we actually get the break below 100 at that point moving forward. I do believe that there's a big gap down, but as of right now, market conditions are in favor for the bulls. S&P 500 just hit new all-time highs and the NASDAQ market QQQ is pretty much there as well, right? Markets are remaining elevated until we get confirmation of markets selling off. That's when it would make sense to short those speculative stocks. But remember, shorting comes at a greater form of risk, especially for those that are just getting started. And I would not recommend it for that. If you ever want to learn more and or just watch me trade live, I trade live every morning right at market open and it's the second link in the description down below. If you're asking what trading application I'm using, I'm using Weeble. It's commission free and there is a promotion going on or if you do want to transfer to Weeble, which is the same trading application that I'm using, they'll actually give you a signup bonus. So, if you want to check that out, it's going to be the first link in the description down below to get some free shares. I appreciate you guys' time. I hope they're under thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note.