Foreign. Welcome back to Small Cap. Recap: It's uh, that dance move is just starting I don't know, you gotta be free. You know what I mean And in this market I have felt very free because I'm actually not taking too many trades.

uh I don't know if I've I may have taken one trade this week. Um, but I'm not saying the Market's dead I'm not saying the Market's slow. I'm saying the Market's difficult and it's It's really just not my preferred stocks that are running. Uh, we'll get into that.

I would say that you know the best stocks of this Market lately have appeared to be um, the sub-dollar NASDAQ Runners that are just super super beating down. The problem is, and I'll show you these charts in just a moment here. but a lot of them they just Gap up into previous or former resistance. They make it tough.

there are trades on them. um I Just think they're a little bit difficult a little bit. The risk award just isn't there for me. Um, and you know in the type of stocks that I feel comfortable trading that I trade.

Well, they're just not moving well right now which is fine. Uh, it's actually it's giving me a lot of time like I said to not trade and to watch and I picked up on a couple things that I'm noticing in this market that do excite me. We're gonna get into that in a moment here. Um, and just things that I think you know.

basically I don't again I don't want to call it a heart or I I'm going to call a hard market for me I don't want to call a slow Market or a dead Market it's not that. um, but when the market is a little bit more difficult like it is right now in my opinion I Kind of want to go through things that I do to kind of navigate through that and to make sure that I'm staying on top of my game. Uh, for when the market does heat up. So we're going to analyze a couple Runners here.

Uh, look at the Spy a bit. Let's just hop right on into the charts. Alrighty, almost already there We there we go. All right.

So like I said, let's just start off looking at the Spy here. Um, we had our 430 test this morning. it failed and now we're getting this recovery. I'm gonna show you the daily.

I Actually I think the Spy daily chart looks great. Um, let's go a little bit wider than a year. Oh my gosh Wait, are we we are officially at one year highs today? Um, this is officially a one-year High We had a high of 426 that was set I didn't even realize that back in August of 22. Uh, and we're now breaking over that? it our high of 429.62 today.

That's pretty cool I'm assuming we might have broken that a couple days ago. Yeah, but I didn't realize very yearly highs? That's great. and I I Really do think uh, we're moving kind of back into a bull market whether that means long-term short-term um I don't quite know yet. but here, let's let's break this down a little bit larger and kind of show you why the Spy is going to be a very important, uh, decision maker in my opinion as to where the market is going to go from here.

So we're getting this breakout right? Let me take off the highs and lows here. Um, we're getting this breakout and you guys know me. I Love my I love my trend lines. Um, because it just helps to give me an indication of kind of where everything's at.

So we had a really, really key Trend break a couple months ago back in February which is great and then it just kind of. We had that one more dip, our high or low and we had one more Trend set up. that was a little bit in my opinion, more meaningful. This right here.

a lot. It's not nearly as steep of a trend, and generally speaking, the steeper the trend gets that that trend line, the more likely it is to maybe not get as much continuation right? That's why one of my favorite patterns actually. Um, when I was kind of first, getting started was like an ascending triangle that just looked basically like this. And here's our breakout area right here.

and you know the the less steep the the downward trend line is generally the better. And this is kind of like a perfect formation for me right here on the Spy. Could it dip? Absolutely. And I Hope it does because the Spy and you know, really, all the indices are leading indicators.

Uh, Meaning for those that don't, you know, know the Spy is going to be the first thing to move up or down. Um, large caps will then generally follow and even if the market starts falling, let's say the market just kind of topples over here. The momentum from this run should still spark a momentum in a couple of large cap. uh, sectors.

Uh, you know it should spark some momentum and those large caps that do end up getting the momentum moving forward generally then trickle down into small caps of those Industries I'm trying to explain it very easily here. obviously it's not always that clean. Um, I'm waiting for an actual dip on the Spy to kind of see right. I mean we've had AI moving really well and AI is at a pretty pretty critical spot.

I'm not going to talk about AI today because I've been very, very bullish on it. Still bullish on it, but giving it a little bit of time to consolidate near this 40 level if it can. This is what I'm looking at though when it comes to the spy. in terms of where is this, are we going to potentially get some momentum coming in? Um, and so obviously we have.

Runners This morning we had mob Q right? Mobq. But this. oh whoops, let's get rid of that. Um, this is kind of what we're seeing though, right? We're seeing these Gap ups and then they just kind of fade off and they don't really do much else throughout the rest of the day.

It's not very similar. Uh, story on Hoth Here, let's look at a one minute on Hoth Yesterday same thing we had one nice move and then it faded off and did nothing the rest of the day. It's not to say that there aren't opportunities there. there absolutely are.

and in fact, I would argue Hoth is setting up great right now for a potential day too. Uh, and I This this is why let's get into this kind of section of it here now because this is where I think that I'm or this is where I see the market setting up in a really great way. Um, for some potential Runners So let's use Hoth as an example here. This is uh, things that I do right? Looking back at the Spy first.

Now I'm looking into small caps I Want to see what is happening? Is there an indication that we could have potential short squeeze right coming up soon? And when I look at things like Hoth when I look at stocks like Hoth We're very mid-range right? But we have a lot of volume that was traded very randomly and I say a lot. That's a you know relative term, but the float on Hoth is one moment. it's three mil right? and so yeah, we did have this day and there's gonna likely if it ever got up here to eight or nine, there's gonna be a lot of resistance. Not a doubt about that.

The thing is, it's three. If it could make it up to that level of resistance, right, that's another 300 percent. And so what I'm looking at here is really more resistance. Recent resistance, you know by volume I look I like to look at high volume days and I see, we're trading above almost all of these high volume days, right? I Mean let's let's just I'm going to go through and just Mark out the levels that I see here and show you in my opinion I I Think we're very close to a lot of these key oh whoops, not quite there right here here.

I mean these are kind of our levels we're looking at by these days of high volume and overwhelmingly, we're pretty close to the upper limits of that on days of very high volume and it's holding there. The key is that it's holding. they're not on the daily chart. It's not necessarily that intraday.

they're the best stocks that are are running like I said. Hoth Had one easy trade on it yesterday, but I like to see multi-day Runners and the longer that these stocks hold up towards these levels after a gap up, especially considering day's recent days of previous volume, this is where Traders are going to be in from right? If you get a gap up and a lot of Traders are shorting this because that's kind of in the market the easiest. some of the easiest trades have just been shorting day one: Gap UPS Lately they have and so when you get people used to that, when people get used to shorting these, day one Gap UPS Like that they keep doing it. and now we're getting things like Hoth where it gapped up a little bit more than expected.

most likely more likely than not. Um, and it it. It's holding up far better than expected, right? If you got short this yesterday, let's just say you got to shorten the 350s, You're only up. You know, 20 to 50 cents a share.

You know that's not great and that's yeah. you're up. You're up. But until you're not.

and then you decide to add again, decide to add again. That's how these short squeezes start. That's how we get these really just wild Runners And if we can get enough shorts piled into one of these, it can cause that momentum that we're really looking for, right? And yeah again. resistance at Nine? Sure, sure, maybe it holds up there too.

Maybe it keeps going. You know I mean there's there's really no way to know for sure. Um, but that resistance is just so far away that there is a lot of room in between for this to run, even if it's 100 200 percent. We just haven't been seeing multi-day Runners lately.

And I look at Hoth and then I look over at Frza, which is a runner from a couple days ago and see a very similar story being told. Uh, let's sure do that. Cool All right. Once again, a recent high volume day.

Let's mark out levels. That's an easier one because there's really only one high volume day open close and our lower end of that Wick We're holding those levels right. Like resistance is determined not only by the price something traded at, but by the amount of volume that was traded at that price. So it's really important to be looking for days of high volume or candles of any kind depending on what chart, like what time frame you're looking at.

But that same concept applies. And so right here when we're looking at this stock that this Frza that gaps up uh, you know, a couple months ago and just faded, faded, faded on very little volume. There's not a lot of room for people to get out, right? I mean there is there this day I'm not saying that I think it traded about 50 million shares, 60 million. Call it.

Not saying that that was one person loading up 60 million shares short. but it does indicate that there could be some potential big players in this with a lot of size. And when you get these Fades with really no volume, there's no room to cover. Imagine just imagine you have 500 000 shares.

Imagine you have a million shares, right? You need if you covering 30 40, 50 000 shares of that is going to move the stock. That's a big move. And so that's more likely than not. When I look at days like this that just kind of ran out of nowhere.

It was likely someone beginning the covering of their short position. Um, whether or not they actually covered all of it, we won't really know. that's you know. I I Couldn't tell you that.

uh, and you you can look at Short uh, short interest and everything. but that's only so accurate. All I know is that based on previous resistance, once again, Frza is another one that's exciting me here. We're hanging above those levels and the longer we can hang above here and hang close to the levels of our most recent Gap up, the more likely we are.

We are for one of these to create a squeeze And that's what I'm looking at is I Want to keep finding charts? not even necessarily to trade the first one. but I'm looking back and seeing all right, where are these you know? kind of Day one gappers right, now in this more difficult Market what are they doing after that? Gap up and you know if you want to look at something similar, right? Not not quite the same, but just an understanding right? when you get a big day of high volume in these: Fades this is a shorter time frame, look at Bbai once that squeeze starts it. I Mean this is a bigger stock? This is an NYSC this is a what's the float on this baby? 35 mil. Okay, that's actually low-ish float.

Um, but not not a crazy Low by any means I mean it only you know a couple It rotated float twice here and we had this monstrous move. a two-day move from 350 up to seven. basically 100 move on an NYSE stock with a somewhat higher float. That's what we can get when we get like once you break those days of resistance, those big days of resistance, things can turn around really, really quick.

And obviously Bbai was one of many AI sympathies that ran. And it did help that we had a hot industry, a hot sector which once again, as I mentioned the Spy once it kind of puts that top in. it gives time for a new sector to either form. show its light, whatever that is.

So when I'm not trading a lot, that's kind of what I'm thinking about is all right. What charts are setting up correctly? What are the industries they're in? Another one that I want to actually keep a very close eye on is that of Gsit? Uh, and this one I think you know it's a semiconductor? Uh, I don't know. for a vaccination you make semiconductors, but semiconductor related stock which I is another industry. that one AI can help you know.

Very similar. Look back on the EV days right when Tesla starts running. Turns from EV companies to battery to Lithium to things that impact that industry. Semiconductors are very much so in the news right now.

stocks like this. and once again, I'm not just saying that like oh geez it since you know semiconductors are hot in the news that this has to run. but we're looking at this chart and again, it's holding over very key levels. I Do want a bigger dip, but these are the kind of charts that I like to look at.

It's a different time frame. It's not nearly as long, there's not as much of a fade, which is actually even a little bit better. I Want to find stocks that are holding above very very key levels of previous recent resistance to see what may potentially run. Um, and that that's what I am doing right now.

And so the ones like Hoth frza Gsit all slightly different of course, but they all do tell a similar picture in my opinion of where the market may head to. And so while I'm not trading a lot right now, I'm absolutely keeping an eye on all of these and that's you know, if you're not taking a lot of trades right now, this is a great way to study, too, right? Like for me, this is keeping me actively involved. I'm going to move off the charts here for a second because I don't have much else to show. Um, yeah, when you're in these, when you're in a slower Market or a more difficult market for you, don't be afraid to take a step back and really just try to break down and analyze charts that you're looking at what is happening.

Um, what is not working? What is working? What is working. Now that may not have worked before, what is continuing to work. Um, that has worked even during other periods with slow. Market That's what I try to do and that's you know.

Ideally, I'm saying all this to you right now. This is almost like more of a webinar for me to just kind of explain the things that I look at. but I hope this can help you if you're not taking a lot of trades or if you're losing a lot of trades right now because this just isn't your Market don't feel the need to keep trading and keep pushing. Instead, take a step back and just look at the charts.

Watch them. You'll be shocked at how much clearer your head gets after a week of not trading and just looking at charts, it really, your head gets cleared a lot easier and you look at things a lot more objectively. At least that's where I'm going through right now. Um, and you know, bust out that journal, write down what you're looking at like really get it to stick down even if it's 30 minutes a day.

What did I see on this chart? What do I see on this chart? That's how I'm navigating a difficult market. For me again, this is a difficult market for me if it's not for you I'm like that that that's fantastic. and I know there are a lot of different traders that traded different style so um, if this Market is working for you, keep crushing it. If it's not, take that step back and just look.

Anyways, that's all I've got for today. So thank you guys so much for joining me. If you have not already, make sure you hit that like button. leave a comment down below to see.

You know what other kind of stocks like those Hoths Frzas Gsit I Do like to read these comments so leave a comment down below of ones that you think may have potential for a short squeeze as well. Uh, in the next coming weeks and make sure you subscribe. post notifications are on I Will see you back here next week for small cap recap. Thank you so much and have a great rest of your week.

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