Trading Tesla and Walmart Breaking News Headlines...

What's up, everyone? All right, in today's episode, I'm going to break down my trades from the morning. I took trades on two different stocks, and both of them had breaking news catalysts. The first was a catalyst about deepening their relationship and partnership with Walmart. So, that was interesting. And then the second one was about a company that's selling a product they've been building, a system they've been working on, to Tesla. And so, those two catalysts, both small-cap companies with a headline about, you know, a big S&P 500 stock, those are headlines that can be meaningful. But as we know, in the current market we're in, it seems that traders would rather gamble on a stock that's Chinese, that has no news at all, in hopes of it going up 1,000%. And I mean, I like a 1,000% move as much as the next trader, but it still is a bit frustrating to see that traders are a bit dismissive of what seem like good catalysts in favor of trading something with no news. And nonetheless, this is the market that we're in. So, this morning, you can see I'm walking up uh a little over $32,000 in profit, with the bulk of that coming from EDGL. However, my first two trades on EDGL actually put me in the red before I rallied and flipped from red back to green. So, let's dive in first on EDGL. So, this is the stock here, and you're probably familiar with it. It's certainly not the first time I've traded it. Over the years, um it's had a number of days where it's had fairly high volume. Uh we kind of go back here, and you can see these higher volume days. And so, you know, we're familiar with it being a stock that periodically gives a nice pop off the low, but then tends to sell off. They have to do a reverse split to get the stock back up above a dollar, and you know, then it pops again on breaking news, and then they often do a secondary offering. It sells off some more, they do another reverse split, and sort of so on and so forth to get to the point where we're at today. And so, the 200 moving average looks ridiculous on this stock because it sold off so much and you can see that a lot of these days it pops up, it sells off, pops up and sells off, pops up and sells off. So we're seeing red volume bars. Now, it's important to recognize that at some point during this day the stock had to go up in order for it to sell off this much and be a big red candle. And so most of those moves end up occurring during the earlier pre-market or after hours trading session. And so this move began here early this morning and it squeezed from about $3 a share to 950. And I was beside myself. I was like, "This is unbelievable." First of all, I have low expectations of EDBL. I don't think it's really going to work that well. Yes, Walmart good, but EDBL has a history of failing. And so when it first popped up here, wasn't really looking at it and then I tried to take my first trade on it, which I'll show you. My first attempt was at 699. I tried to buy 20,000 shares at 699 right here for the break over seven and it ends up going all the way up here to 950. So from $7 to 950 on 20,000 shares it would have been a $50,000 winner if I sold if I got into the very well, if I got in right at seven and I held to the very top, which I wouldn't have, but it could have at least been a $20,000 winner if not a bit more than that. And I missed it and I didn't want to chase it in this area because there wasn't another pullback. So then finally it does a pullback right here and I said, "All right, I'm going to jump in right there." I jump in right down here and I lose three grand. Gosh darn it, you got to be kidding me. Then it pulls back and it comes back up and I jump in again thinking we're going to set up here and so I add a little over eight. It goes to 826 and then flushes down again and I lose on it a second time. So now I'm getting a little annoyed. You know, this is a stock that goes up 200, 300% and I managed to be red on it. So it pulls back here as it comes down a bit lower. And then right here it comes back up to VWAP right there. It's not able to break it, dips down, comes back up again here, and I add to anticipate the break through the volume weight average price. Now, at this point, if we look at the 1-minute chart, we'd pulled back a little bit longer, right? We'd have this more sustained pullback, and now I'm looking for the curl. And I was basically thinking, "Look, if this thing breaks back over VWAP, then the next target is a retest of the high of day." We do have some topping tail candles, but let's see what we can do. So, as it starts to break the VWAP, it starts to move, and I'm like, "Okay, here we go. It's game time." And we end up getting the squeeze all the way up to a high of $9.94 a share. And I kind of thought this was actually potentially going to do something even bigger because short sellers were now trapped under the volume weight average price. So, back of mind was this is going to break through 957, and we're going to crank here up to 11, 12, maybe higher. That didn't end up happening. It ended up having a topping tail and dipping back down, and so I was in and then back out as it comes back down. So, locked up my profit there. Uh took a few trades in this area, and then just sort of called it and said, "All right, I don't think this is working." So, it ends up pulling back. We had this clear sort of level up here around like 826, but it just couldn't get through that level. I don't know why. And then as we got closer to the open, it dips down, almost halts down, then halts up, then opens and halts down twice, and ends up going lower. So, uh anyway, so total profit there, $30,000. Not bad, and flipped from red on it to green. Then, VTI X ends up having news that comes out at 9:17. Uh sells first enterprise system to Tesla for Optimus humanoid robot division. And so, I thought, "Okay, any headline with, you know, a big company like Tesla seems pretty good." And so, I thought this is very interesting. So, I went ahead and punched it. Um we ended up on this one having a uh micro pullback at about 350 right there. And then it squeezes up to four and goes all the way up to a high of 450. And I added as it was squeezing higher. Uh Uh unfortunately in my small account, well, fortunately my small account I did well. Uh unfortunately my big account I didn't really do as well. Made only $1,200. Uh and I'm shocked that it's now down 30% on the day on this catalyst, which seems like a good headline. So, once again, you know, and and that's moving while that's failing while BIYA starts squeezing up on no news whatsoever. Cayman Islands Holding company with operations in China and this one's up 111%. So, you know, I guess I shouldn't get stubborn and maybe I don't know. I mean, look, I had a I did well on EDBL, but it's confusing to have stocks with news that aren't working well. While stocks with no news are making these moves. It throws me off a little bit. But I'm I'm trying to adapt and so in any case during the pre-market session, we didn't really have any I didn't really notice any no news Chinese stocks that I was particularly interested in. I saw a couple no news stocks pop up, but they didn't end up getting volume. So, I just kind of to keep it tight for right now. But the good news is this is a great start to the new week. So, last week was the best week of the month and now starting today with a $32,000 green day plus the profit in the small account. This is a solid green day. So, I'm hoping that, you know, this is a sign that this is going to be another really solid week in front of us. So, I'll watch the scanners you know, throughout the day and later tonight I'll check to see, you know, what were the biggest percentage gainers. And then tomorrow morning, bright and early 7:00 a.m. when I sit down, I'm going to be watching this top gainers scanner to see what is obvious in the market. And you know, we did have DFNS which was on my watchlist from yesterday. This popped up right at 7:00 a.m. pulled by or sorry, 4:00 a.m. then popped up again at 7:00 a.m. right there. Could have taken a trade on that, but was running a little behind my um schedule today helping the kids with some stuff in this morning. So, sat down at like 9:00 uh 7:15 and so I'd missed that first pop. Um you know, so that was continuation and then what was the other one I had on the watch list? Oh oh, um stack? Stacks, I think? No. No, it was um What was uh No, I can't remember. Um But it it only it didn't really end up um giving us any good opportunity. I can't remember. It was from It was from the other day. But nonetheless, um yeah, so as we sit right now, um I don't see anything that I'm feeling like I'm missing by sitting on the sidelines. BIYA, I mean I don't I don't know. It's an inverted head and shoulders pattern here, but not really feeling like I'm missing anything by not trading it. So, sitting tight and I'll be back at it first thing tomorrow morning. All right, so with that, remind you guys as always trading is risky and my results aren't typical. So, manage your risk and always practice trading in a simulator before putting real money on the line. All right, take it slow. I'll see you guys back at it first thing tomorrow morning.