Penny Stock Goes Up 1,753% in 10 Minutes

What's up everyone? All right, in today's episode I have a stock to show you. This is crazy. We had a stock that went from $1.35 to $18 a share in 10 seconds. What are we doing here, guys? This is insane. And if you're shorting these, my goodness. All right, this is your red flag. This is your notice to be very, very careful. This thing was insane. It was just unbelievable. Now, I actually thought today was going to be a no trade day because when I first sat down at 6:45, 7 a.m. There wasn't much on the scanners. We had a couple stocks were up 40, 50%. H wasn't really that into them. We had one stock that finally started to pull away a little bit, but then just kept running into resistance. It just couldn't open up. And I just sort of said, you know, I just think it's not going to happen today. You know, 7 nothing, 7:30, nothing. 8:00, nothing. 8:15 nothing. 8:30 nothing. 8:40 boom, another huge move. So, let's go ahead jump on the screen share and break it down. You'll see I'm up $13,632.60, which is not bad considering I thought it would be a no trade day, but I was up 37,000 and gave back about 25K off the top. So, that's a little bit of a bummer, but I'm not going to be too bent out of shape over it. So, XHG was our Chinese um surprise today. I I just This is unbelievable. So this stock um just you know look I mean it's one of these stocks it's got a 46 million share float very low expectations on it history of selling off reverse splits and then today it pops up. Now this one um did actually have news and I almost thought that might be a bad thing because stocks with no news have certainly been more um more impressive than stocks with news recently. But nonetheless it had popped up here. Uh you can see that this move began. Let's see, where was this? Um, excuse me. Began around 8 a.m. pops up, goes sideways around$120 and it sort of squeezes up right here to a$1306. And this is where I was like, you know, I think maybe I should punch it. So, I put my order for 15,000 shares. And I had the order ready and I was like, uh, I don't know. And then all of a sudden right here it goes a$180 240 260 280 360 380 $4. Scroll the chart. $5 $6 $7 $8 $11 $14 $15. This thing actually printed a high. This is absolutely insane. Of $188 a share. Imagine my 15,000 share order. I would been up like 300 grand. It's insane. Um, but it came right back down. It came right back down. And so in a way that's like an algo spike where all of a sudden probably what happened, you'd have to think is I mean someone man I don't know someone someone might have had a really big short and just got forced into liquidating and then you got this really rapid algo spike almost like a flash crash but the opposite where it goes straight up. You don't always know exactly what triggers that, but because we had a similar move on socket SCT earlier in the week, now I am kind of wondering like is this going to be a thing where these stocks at this sort of, you know, I don't know. It we know that obviously there's traders that short these um and you know, it is kind of crazy because if you short a stock at 70 or 80 cents a share, the most you could ever make is if it goes to zero. Uh but then if it goes to $18 in one candle, your your risk is way way more than your reward. Uh so anyway, so we had this pop on SEKT. It drops back down. I bought the dip here and it rallied back up. I did the same thing with XHG. I bought the dip. Um I didn't get in as soon as as I should have. Uh but I did get a dip trade on this uh we got a rally back up to about 7. Uh by that point I was up 37,000. It then dips down. I took a trade right here looking for this curl and then held and then stopped out before that drop. Lost about 15 grand on that. Then it comes back up and I got back in. Um let's see. I got back in a little bit closer to the open. Uh it was right around here that I got back in and I was looking for that squeeze through seven. Uh but it stopped out and I lost on it a second time. So then I just said whatever. I didn't take any trades on it after the open. Um and it's sold off a bit now. It's up about 332%, but it's still holding at $4 a share, which, you know, I almost wonder if like I mean, because this is a Chinese stock, we just don't know. But I almost wonder if um you know, someone's in cahoots with some of these companies and they're like, "Listen, we're going to just send this thing to a crazy price. It's not going to hold that price, but we think it'll hold higher than what it was was at." So, you know, well, so here it's still at $4, which is still a net positive for the stock. It's got 58 million shares of volume. Uh, but we don't have anything yet that's over a 100 million. Well, at least I didn't think we did. No, we don't. Um, so the volume today is a little lighter than it was yesterday. I mean, we're still seeing some decent moves. But, um, you know, I will tell you that this week, uh, the roller coaster has been open in my P&L. I mean, I've been having these big P&L swings. Um, you know, well, the last I guess it's been a little bit more than, uh, just this week. It was last week as well. I'm just going to pull up my metrics so I can um import my trades from yesterday just to add to uh what I've got. So, at this point, I I'm kind of feeling like tomorrow going into the end of the week, like I'm scared, you know? I'm afraid uh I I don't want to not show up. I'm going to show up. I always do, but I'm afraid because I could either have like a grand slam huge winner or I could just get completely obliterated. and it feels like it won't be anything in between. Now, it feels that way. That's not uh that's not true though because I could of course reduce my share size tomorrow and then I won't have a big loss and I also won't have a big winner. If I only trade with 100 shares tomorrow, I certainly won't have either of those. Um but trading with small size, um I usually don't really like that idea. That feels sort of like a bit of a copout. And um you know certainly I'll size down if I'm feeling a little unsure, but and I think that probably wouldn't be a bad idea for Friday. So um this is the last um you know whatever 3 days. So uh let's see. We had uh not including today, but today's another a similar day at 13,000. So you know 80 so red 73, green 84, and then 1917 and now 13. So, the two red days here are a little closer together than I'd like them to be. This is only two, four, six green days apart. So, a small red day is fine, but I just don't want to have a Friday where I go deep into the red. So, I do need to be a little bit careful. Um, on the one hand, it feels like the market is hot, but on the other hand, it's still been difficult to predict which one's going to move, and having a stock today with a 46 million share float do something like this was definitely unexpected. Um, and then the second leading gainers, FGI, and this one I just really couldn't get in the groove with. Um, I just felt like, um, I don't know, I just felt like it wasn't working. Um, you know, it wasn't moving quickly enough. And so, at a certain point, I just sort of say, you know, I I think I wasn't able to break the ice on at the spot where I kind of wish I could have, should have. And that was early on. We had this big squeeze and then we kind of ran into this resistance level. And so for my um you know for the small account I just said I I don't know. I guess it's not going to work. For my Roth IRA I just I don't know. I just wasn't feeling it. So it was a little heavy strange price action. US company um they had a headline this morning. Roars back uh leading uh the global leading I don't know sink and kitchen something or other based out of New Jersey. But, you know, flipping from uh losing money a quarter over quarter profitable, which is good. And yet, it still felt heavy. It just felt heavy. A lot of sellers on it. So, in any case, you know what? Um, today is just one of those days where we got a wildcard stock. I didn't really trade as well as I could have. The float threw me off, blah blah blah blah. But, I'm walking away a little bit more than I had at the beginning of the trading session. So, I'd say that's a good day. And I'll try to do the same thing tomorrow. But just be mindful that we're coming to the end of the week. It is August. Uh what does that mean? Well, summers can be slower. August can be slower. Hasn't really been the case, but I I was read last Friday. Again, I would attribute that more to my own issues um than the market because there were some good opportunities. But um yeah, I don't know. So, in any in any event, um I'm just going to try to cool off a little bit. Uh but you know, if I can build a cushion. I built a cushion today, though, and then I eroded it. So maybe I should just try to build a cushion and then take it. All right. Well, that's to be decided, but as always, I'll be back at it first thing tomorrow morning. And I'll remind you that trading is risky and 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 practicing in a simulator before putting real money on the line. All right, with that, I'll see you tomorrow at 7 a.m. Eastern Standard Time.