Alright, good morning everyone! So it's about 905 starting the morning show just a little earlier today and not not much going on. Um, on. In the small cap world, it's still kind of slow just waiting for those good opportunities to present themselves. I'm green on the month right now.

I had my fifth green day in a row yesterday, but not making big gains, just catching a couple base hits, uh, here and there trying to keep my head above water until the next kind of indo like we had last week. This one paid pretty nicely. So waiting for something like that to show up and when we start seeing something moving like that, we'll know we won't have to guess. We'll we'll be.

we'll know. So just have to wait a bigger gap down on Facebook this morning. Uh, and yes, Reminders always that trading is risky and my results are not typical. so I do encourage you to take it slow and trade in a simulator before you put real money on the line.

Especially those, uh, maybe tuning in for the first time on Youtube. Thank you for tuning in on Youtube. I hope you hit the thumbs up and enjoy the morning show. This is going to be a watch list.

I may do some live trading if there's something that presents an opportunity. Happy to do that, but that'll be if something presents an opportunity. I've already been streaming for a while for Warrior Pro Students in the chat room and we'll continue streaming until I'm finished trading and have taken my last trade of the day. If I haven't taken a single trade by 10 am then I wouldn't take any trades.

That's my my hard cut off. It's kind of a rule of thumb that I've found that if I haven't gotten green by 10 a.m and I start trading at like 10, 15, 10, 30, that typically doesn't end well for me, so that gives me a window. Uh, you know, up until about 10 A.m to find my first trade. Facebook is not my go-to stock as you may already realize.

So the float on Facebook is 2.5 billion shares. 2.5 billion shares. All right, it's a huge float. It's got 7.8 million shares of volume.

It will have high relative volume today, that is for sure. There's no question about that, it's already on 37 times relative volume. Uh, yesterday the total volume on it was 58 million shares it looks like which was increased because of course the after hours sell off which was the highest volume in that little kind of sell-off that it had in a while. So I'll give you my analysis on it.

Um, daily technical levels. You have support at about 244-61 and that is a double bottom so that is a pretty significant level. Um, that could be a level to look for a dip trade, but we know that earnings and guidance were poor and is not being received well at the same time. it's going to be a double bottom.

Coming into that level would form a triple bottom if it bounces right there so that that could be a decent spot for a bounce. The one before that was about 253, but we're well below that now and then. There was a small level at 247.25 which was the low of this candle here. Uh, but you know, the problem with this naturally is that it's 246 dollars a share.

So you know I even in my uh, retirement account, I think I have around 670 000 or something like that. I I, I can only buy like 2 000 shares of this 2500 shares. You know, I I cannot take a very big position of this stock. Uh, my margin account has leverage, but it doesn't have that much money in it so I can't do much over there.

and my goal is to not trade in that account too much because the income in the margin account is taxable. The income in my retirement account is, uh, of course, tax free and I'd like to keep it that way, so keep my profits that way as much as I can. So yeah, um, and so at this point, while there may be some opportunities on Facebook, uh, the price is a bit of an obstacle for me. Uh, you know, even even now.

And this is this is why some traders would like to have you know that six hundred thousand dollars in a margin account six times four is 2.4 million. And on the off chance that you have a stock like this, that's moving, you know you could. You could take ten thousand shares of it. But you know, if you make forty grand or fifty grand on it, which would be, you know, five points on ten thousand shares.

Well, don't forget half of that you know going on Uncle Sam. And depending on what state you live in, if you live in California, you could say goodbye to half of it. But if you live in New York, Massachusetts it's It's close enough. You know you're in the 40 40s in terms of percent, uh, of taxable income there.

So these are short-term capital gains, tax, irregular income levels. They're not a long-term capital gain, so it's it's hard enough to trade without half of your profit being taken away. Now that's obviously when you're at the top income bracket. If you're at the bottom, then it's different.

And for beginner traders and I when I was getting started, I started at a level where I didn't have a lot of taxable income so it wasn't too bad and of course made good decisions about, um, making sure to keep close tabs on the amount of money I spent on software, right? Because that's as, uh, you're making money if that's your business and that you could deduct that against your your gains and things like that. Obviously not to give tax advice, but just to share with you. Uh, some of the things that I think probably makes sense to look at. So in any case, um, I I encourage all of our students to set up a Roth Ira and to trade in your retirement account as much as you can because it's doing yourself a favor.

you know it's for you in the future. Uh, so I I would. I would encourage it. Uh, but in any case, uh, this morning.

so two issues. So I can't short Facebook in my retirement account. Uh, because you can't short shorten a retirement account so I'm not allowed to do that. and I don't have leverage in a retirement account so I can't take big big positions.

Which means I do have to leave a higher balance. But even right now with a 600 000 balance or whatever it is, um, that's not quite enough to be able to, uh, do much on this one. So let's see, I can just check down here my balance at the end of the of, uh, the month. So my balance was in the retirement account 671.

Yeah, at the end of the month. So about 671 So it's a little higher now, but not a lot higher so that just doesn't. Uh, and it just doesn't give me a a lot of a lot of room to work on something like Facebook. And now again, for a swing trade.

You know if I did a dip off of 244 and held it for a couple days. But with the earnings uh and the guidance being negative not received well, I don't know if you're going to see this knee-jerk reaction of a big sell-off and then a pop, or if you're just going to see a more sustained pullback for a longer period of time. And on the other hand, Google news of the of the split that they're gonna do and good earnings? So do you see money go into a stock that is just performing better? Maybe I'm not sure, but I'm not going to take swing trades and I don't have the cushion on the month or the cushion on the year to take sort of higher risk speculative trades. so it's about 9 15 right now.

I haven't taken any trades yet. I'm interested to see if we have something that starts to pop up and then becomes a bit obvious for small cap traders. I know small cap traders are getting antsy. We're waiting for something.

so we get something that starts to open up and look exciting. You'll certainly have people jumping off the sidelines to try to take a stab, but right now it's just about being patient. Uh, I'm not really familiar with this one. Is this a oh so natural gas short? Yeah, so that's an Etf, so I don't have a lot of interest in that.

So yes, Amc is volatile and certainly some people would be happy to try to trade it each day. The relative volume is a bit lower, so that one for me is just not really interesting enough. So back to the uh, near top of the scanner to answer your question. there.

Bon. Why am I not looking at that more closely? Well, the news was after Hours and it moved on the after hours news and it's continued squeezing pre-market all the way to six. But now it's back at four. It is a somewhat recent ipo.

I like the idea of it, but it's pulled back too much. so that's that's disappointing. So right now it's below the V app. It just doesn't look that great.

Bcda this one the float is 14 million shares, the price is now under two, and it's below view app, so it's just not. Um, it's just not really that interesting. Right now. I'd prefer not to trade these, uh, lower priced stocks.

In any case, I seem to be doing better between five and and 25 than you know. Well, certainly under two dollars between two and five is fine, but I just seem to do better when the price is a little higher. we see bigger range, more volatility, and you know it's It's just easier to move in and out with a dollar fifty two dollar stock to make ten thousand bucks. You know you're going to need 20 000 shares and a 50 cent move, but if it goes up 50 cents, that's a 20 move in one trade.

That's A That's a pretty big move. It's not impossible, but that's a big move. So then you start thinking, well, I could take 50 000 shares and if I get 20 cents, but you'll find that even getting 20 cents a share on these is not always that easy. And then you've got a big position, you might have gotten some slippage.

Getting in, you're gonna get some slippage, You know, when you get out. So it starts to be a commission churning type of situation. So what I think of traders who trade the same stock in order to specifically learn how they move? You know? I've certainly heard of that over the years. Traders that you know focus on trading Tesla every day.

Some of those traders have that I've talked to have said things like well, you know, if it goes down, I don't mind holding it overnight because I really like Tesla, So you know then they they get into holding it sometimes overnight and kind of averaging down and stuff like that and that that if it works for them, that's fine. If they're really comfortable holding the stock through a longer period where it's pulling back, then that's okay. I've asked. Well, you know what, if you got into 1100 and it's pulled back this much, you know what are you doing on the days? sort of in between.

You know, do you just not trade because you know if you're getting in and out, you're changing your cost basis. Um, and some have said, well, I have more than one account. You know I have a retirement account and a main account so I can kind of. even if I'm still holding on one, I can trade in the other and vice versa.

So um, anyways I I I think that that's interesting, but I think it's easier said than done. I think it's actually a bit harder to be consistent just trading the same stock every day because you're going to be trading it on days where it has relatively low relative volume and moving in and out with small positions might be easy. But if you want to try to scale that up to bigger positions, it might be hard. And you know you could have some institutional trader who you know, a Bill Ackman type of person who's like oh okay, hey guys, why don't you go sell my million shares and all of a sudden it's you know, a million shares hit in the market.

So hmm yes, there was a time where I didn't take pre-market trades at all several years ago because we really didn't have a lot of volume pre-market you would have a stock that had news but maybe only like 10 000 shares of volume and traders would wait to the bell until the 930 bell for you know for the most part it there was a little volume pre-market but it's not a lot. And then it just started that we were getting. I don't know it, I think the traders started just not wanting to wait to the bell. So if you know if you saw a stock that had news at 9 15 it was like well, these always seem to spike up at the open.

I'm just going to get in here at 9 15. and then you know some people are like well maybe I should get in as soon as soon as the news breaks at nine and so on and so forth. So now it seems like it's a race to jump in as soon as the news breaks, which is not surprising. I kind of thought that would be the direction.

that's the result of more participants in the market. you know, traders trying to get a jump on each other. So we've got about five minutes to the bell. So so far the Gap scanner is pretty much unchanged.

You know, Facebook in that one candle just dropped two points, right? So what's the deal there? Look at that big red candle. where'd that come from? It was a 10 second candle. 100 000 shares, you know, is that just one? You know? It's like what? all of a sudden two point drop? Well, Facebook probably won't get halted up or down today. It's not that it couldn't, but I'm not sure that it's going to move enough to get a halt so you could look at a Facebook short at the Open for a sell-off to 244 and then a possible long off 244.

But realistically, it's already down. 23 from 46 to 44 is only at this point two dollars a share, a dollar and a half a share. It's at 45.80 now. so it's you don't have a lot of opportunity.

the short side. At this point. it might make more sense just to watch it for a long off of 244.61 and just see how it trades at that level. Hang on one second.

My: So, there's 244 61 just about. So if it breaks that level, what's the next level? round 234 235. So typically at the open I I would expect a little capitulation sell-off since it's right at this level. That makes me think that it's gonna break it.

Uh, I could be wrong, but I'm not sure that it's gonna hold this level since it's coming into the open right right at that level. That's not going to allow for the panic selling at the Open, so I don't know. Just something to keep an eye on. Uh, no small caps yet on watch for those tuning in on Youtube.

Thank you for tuning in for the morning show. Appreciate it. We'll see you guys! Uh, next week I'm going to be out tomorrow, but I'll be back at it next week and hopefully we have a little more action in the small cap world because it's been slow. but we will.

It's ebb and flow and we always see these cycles so manage your risk. take it slow. Reminder that my results are not typical and I'll see you guys next week. You.