A Reverse Merger Catalyst Sends Stock Squeezing Shorts

What's up everyone? All right, in today's  episode I'm going to break down my trades   from the morning. I hit the ground running today.  We had a stock that squeezed up over 350% on the   news of a reverse merger. This is an interesting  catalyst and it's actually very similar to what   we had yesterday on Vee E. V ended up going up  yesterday to a high of over $40 a share from   $4 to $40 in one day. That's incredible. So today  when we had another stock with similar catalyst,   you can bet that buyers are ready to step up  to the plate and short sellers were probably   a little bit nervous. Now you might notice, wait a  second, Russ, that almost looks like a red shirt.   you would be mistaken because this of course is my  green shirt. That's right. I found a loophole in   the superstition cycle that I've been caught  in like many of the greatest athletes of our   generation. Yeah, I'm a bit superstitious. I throw  salt over my shoulder if I spill it. I would never   walk under a ladder. I would not break a mirror.  And I would never under any circumstances wear   a red shirt, which is why you can see I'm wearing  my green shirt. Now, this is something that I came   up with. I just took a white paintbrush, well, I  took a paintbrush, dipped it in white paint, and   I wrote green shirt across the front, and I said,  "Brilliant. I have just solved all of my problems   in life with a simple stroke of a paintbrush."  Now, I want to unlock this level of freedom and   confidence for you, which is why the merch store  at Warrior Trading now has green shirts available   in all colors. You can get a green shirt in this  shade color here. You can get a green shirt in   blue. You can get a green shirt in black, a green  shirt in white. It doesn't really matter. If you   want a green shirt, you can have a green shirt.  You can wear a green shirt every day of the week.   Now, I don't want you to think I'm making money  selling t-shirts, cuz that's not really my thing.   Which is why we've got a coupon code so you can  buy the t-shirt at cost. I really just want to   spread the good word that you no longer have to be  burdened by the red shirt. We can be unburdened by   what has been. All right? You see what I'm saying?  So, link is in the description for your green   shirt. Check it out. Now, since this empowered me  today to have such a great day, we should probably   start looking at the stocks that I traded. All  right, the leading gainer right now in the market,   NXTC. Let's run that little intro. NXTC currently  up 272%. It has pulled back a little bit off the   top. Now, this had a high today of $12.30, but  let's look at VE from yesterday. So, this one,   let me just click auto here on my charts to scale  it. This is unbelievable. So, when this first   popped up yesterday, initially I was like, "Yeah,  we've seen this stock a bunch of times. You make   boats. Nobody cares, right? I mean, come on. H  how much h Let's just be real. How much money is a   boat company going to make? What are they going to  do? AI for autopilot? I mean, there's just only I   just felt there was only so much they could really  do. But in the past, now that's in the past. And   this is a stock VE that has popped up many times  in the past and it never really does that well.   but rolls over. Again, it's a boat company. What  do you expect? So, you don't want your boat to   roll over, but nonetheless, it's it's not one  that's been able to do particularly well. So,   we get this uh move on on um yesterday on Monday,  and the catalyst was that the company was selling   off the seemingly profitable boat business and  they were doing a merger with another company   which was going to bring the other company into  the public space. And so this is called reverse   merger. So for instance, just as an example,  let's say Warrior Trading wants to go public.   And there's two ways to go public. Well, three  ways. You can do an IPO, a traditional IPO where   you work with an underwriter, a big bank like  Goldman Sachs or, you know, whatever. And that   bank basically comes to you and says, "Warrior,  you know, we've looked at your balance sheet,   looked at how much money you make, blah blah blah  blah. This is how much we're going to give you for   all of the stock that you want to sell." So we're  going to give you, you know, a billion dollars,   whatever. That'd be amazing, right? So they're  going to give you here's the check. And then   what Goldman Sachs does is they are the ones that  actually go sell your shares to other investors   and they sell them on the market and they make  a profit by taking that risk. So they, you know,   god forbid something terrible comes out in news  between when they put their when they give you the   money and and then actually the IPO, that could be  a problem. So they take risk, they get compensated   for their risk. They get compensated very well.  The second way a company can go public is through   a special special purpose acquisition company,  a spa. These were very popular during 2021,   2022. Trump Media went public through a spa.  And a special purpose acquisition company is   a shell company. And everyone that buys into  the shell company as an investor buys in at   $10 a share. So if the spa, the special purpose  acquisition company, raises $und00 million, they   can now use that money or they raise a billion,  whatever, to go find a privately held company,   buy it, and then merge it into the spa and do a  name change. And then just like that, that company   is now a publicly traded company. And doing a  reverse merger is the third way, and it's very   similar. So, a publicly traded company that maybe  isn't particularly profitable can be approached or   could approach a privately held company and say,  you know, the privately held company usually says,   "We want to go public and we want to do a merger  with you." And then we they do basically a swap.   And so the publicly traded company sometimes will  sell off their their profitable business to a   private entity and then the other private company  becomes publicly traded and they do a simple   change and a name change. So that's what happened  on or that's what's happening um in the case of   um V uh EE and in the case of NXTC that's  the same headline announces a reverse merger   with a privately held company in a $320 million  deal. So suddenly the stock squeezes up you know   again because of the big move we saw yesterday.  Unfortunately as awesome as this move was the bulk   of it was early in the morning before 7 a.m. which  is when most retail traders come online. You see,   you know, that's a burst of volume. But 7 a.m.  was uh let's see, right about here. And so,   we already had this big move, this big rally  up. It pulls back, it comes back up, dips down,   drops, then it rallies up here. And so, right  at 7 a.m., we had this pop. And I considered   that to be a false breakout with the high of 840.  And I thought, look, if this gets back over 840,   I'm interested. And so later as it curls back  up only a few minutes later at 8 7:15 I jumped   in there for the break of 840 it goes to 9  almost immediately up to 950 as you can see   up to 10 up to 1050 up to 11 up to 1150  up to 12. An incredible move. Locked up   $19,000 of profit. But then it flushes back down.  You end up getting this topping tail. And I never   like a topping tail like that. It shows that  while the stock squeezed, it ended up, you know,   dropping back down. Uh, so it sells off, sort of  goes sideways, comes up, another rejection there,   and I didn't end up taking any more trades on it.  You know, that was just one really good trade.   Traded in the small account, traded in the big  account for $19,000 of profit. Then I broke the   ice on JTI. This is a stock that popped up just  for a moment. I jumped in and jumped out. I lost   uh well, jumped in and jumped out. I lost $235  on it. Then the last stock I trade was UBXG.   UBXG popped up this morning, pulled back,  and I got in as it was curling back up,   but I added to the position thinking it was going  to squeeze through the high. Then it dropped down.   I stopped out for a $1,700 loss. Then I got back  in, and then I stopped out a second time. Then I   got back in and I stopped out a third time. This  thing just did not want to break through 11. Now,   finally, as you can see here, it halted up, halted  up a second time, broke through 11, and is now   dropping back down. some tricky price action, but  nonetheless, I'm sitting in the green. $13,200.70. I'd say that's a decent day. Yesterday  was an $8,000 green day. So now 13,000   today. That's 20,000 plus on the week.  So that puts me up a little over 90,000   on the month of July. 100,000 is  the first goal. Then 200, 300,   and 400. Last month I hit just under $600,000  between the small account and the big account.   So, I'm looking to continue that momentum and  have a solid month of July. And, you know,   with this move that we had yesterday on VE, the  move on NXTC today, uh, you know, it it feels like   the market is still pretty warm. So, although  I wasn't able to absolutely crush it today,   I'm green. I'm grateful for that. And I will live  to trade another day. So, with that brief recap,   I will be back at it first thing tomorrow morning.  Make sure you check out your green shirt with the   link pinned at the top of the comments. and I will  see you streaming at 7:00 a.m. tomorrow morning.