What's up everyone? All right? So I'm gonna go over my trades from today and I'm going to talk a little bit about Kala K-a-l-a currently up 300 today and this is, uh, kind of another example of one of the stocks that I've talked about recently that has a combination of factors that gave it some extra momentum today. Uh, however, it wasn't without risk to trade it. In fact I went red about 12 or 1300 on it before recouping those losses and finishing only moderately green and I under traded it I had, um, I was doing something with my kids from like 10 a.m until like 10 minutes ago until 12 15. So I sort of missed.

um, this big window of trading. uh, you know, kind of from about you know about here. Uh, until well, I guess kind of like right in, right in here. Um, and then I've just sat back down and this is what I see so you know that's the way it goes.

Um I I'm at a place in my career and in my life where I don't spend eight hours a day sitting in front of the computer the way I did earlier on and that does mean I missed some opportunities. but for me I you know it's just a um, it's just kind of a I guess a opportunity cost of I lose the opportunity to trade some of these stocks. but I gained the opportunity to spend more time with my kids and family and that's more important to me right now. Of course, when they're older and then they have their own lives, then I'll probably be able to spend eight hours in front of the computer again, if that's really what I want to do at that point in my life.

But anyway, so so going back on this one. So this was kind of interesting. Uh, this morning when I first sat down I had noticed that it was up. It had made a move.

After hours on Friday or um, after hours yesterday, it squeezed up. it drops back down and pre-market starting at 4am, it started to pop up just a little bit. It pulls back a little bit. you know it wasn't super exciting.

It came up here to a high of 678, pulls back and then right here. We've got a couple of false breakouts and I want to kind of Point these out because these are the reasons why it made sense to be a bit bearish on it. So we had a false breakout right there on the five. Another one right there, and then another one right here.

Now if we switch this. Um, we switched this actually to a one minute chart. Switch this to a one minute chart for a second. Um, so we're looking at these false breakouts pre-market and look at the high volume red candles associated with this false breakout.

This false breakout. So my first trade was right here: I Bought for the Breakthrough 650. it goes up to 660 and then it slams down to 620 and I lost 1300 bucks on that trade. That was my first trade wasn't super super happy about that.

Obviously it's not a great way to start the day. It ends up bouncing off volume, weight, average price, and curling back up. but you know it was choppy. I saw it do another false breakout right here I then took a small position right here and it pops up to 60, 65, 67.

made like 200 bucks and then at the open. This is where I got a trade I got a trade on this I took along at 675 and I actually held a small position of that all the way up to nine dollars and about 30 cents. So I held it through here and then up through this area. Here is where I took the profit finally off the table.

Maybe it was somewhere around there that was pretty solid. Uh, in fact I under traded it. Now the problem was when I added at 675 right here I can go back to that trade that was right around 9 30. So I only bought 1500 shares? Well why why didn't you step up to the plate with five thousand or ten thousand? The reason is because of this red candle.

This red candle, this red candle and this red candle. I didn't trust it and uh, this one right here at the open I really didn't trust it I knew the risk was high buying it at that high a day spot and so I took a small position. uh and and it ends up ripping and next thing you know it's halted up right? So all of a sudden it's halted up here at 7 33 I think it was 7 23 and I was just like, well okay, that was nice but I don't know, it opens a little bit higher, it dips and I just wasn't sure because in this market we've seen things open higher and then sell all the way off and halt down. but it ends up ripping nicely, dip and rip.

uh, up to eight, pulls back, pops up to 850 and then up to nine and at this point I was just like I'm just gonna ride the momentum right here. We had a kind of nasty false breakout, pops up, drops down, and then Wick reclaim back up and I took a long on this right here. Uh, about 8.95 or 8.99 for the Breakthrough the high you've got a nice like 40 Cent break on that, up to 937 drops down, comes back up I get back in for the break of 9 37 it hits 950, 960 dips down and then we start to get into this choppy period right here. Now something that I noticed on this one which I thought was interesting, was a little bit of a pattern on the level two.

And the pattern was that we were having these big stacks of Sellers and the stack of sellers it was. It was like 10 sell orders all at the same price and kind of obscure prices like 9.43 This whole stack was moving down sort of together. so that told me that uh, this is some type of order. it's Dynamic it's moving and it's moving orders that are going out to multiple routes all at the same time.

so it's kind of like a wall and I've seen that before and I usually when I see that I think either someone is trying to unwind a big position uh, someone is trying to scare off long biased Traders or someone's trying to go short I usually just consider it to be bearish. so that was happening I noticed it I first noticed it. um it was right around this area here that I first noticed it and I was like this is weird uh and so it's pulling back here and this, uh until maybe 10 15 or so and I had to run out, run out with my kids I was noticing it on the level two and then I walked away and what looks like happened here. um was in one one minute candle it just jammed up and is halted up and so anyone who is perhaps shorting in this area thinking that that was a sign of weakness which it did seem that way with those big stacks of orders.

Uh, all of a sudden those orders. were gone and it just boom goes straight up into a halt. and now you've got some people that are trapped, which could have been exactly the intention of whoever was moving those orders around it, then dips and rips into a second hole at 1177. Then it dips and rips into a third.

Halt and then dips and rips into a fourth halt going up. That's pretty impressive. One, two, three, four halts going up, it opens. It hits a high of 1748, halts down, wash out, dip here from 14, back up to 15., back up to 16, back up towards 17.

and then a jackknife. Big red candle flushes down hard, almost halts down, comes back up. and right now we're in this. This is where we're at right now.

Uh, so it's it's pretty extended up here. Uh, for sure it's a bit top heavy and so one of the things that I start wondering is does this stock have a shelf registration? So we have a shelf registration? Um, right here for 350 million dollars and I'm almost wondering. let's see that was 16 million dollar offering. This was a okay, so that was before that.

Um I'm I'm almost wondering if we're gonna see news in the next day or two of a secondary offering. I If we had the news I Mean it's they could almost. They could squeeze it in before the end of the fiscal year. They would have to do it tomorrow either later today or tomorrow or Friday but it would get some more cash um, on their balance sheet to close out the year.

So you know this is the type of thing that, um, we see a lot of the reverse splits, shelf registrations, secondary offerings the Shelf registration squeeze as we sometimes, uh, think of it, you've got a stock that has a shelf registration that suddenly makes a huge move and then like later that same day or the next day, they drop the news of a secondary offering. It's kind of, you know, makes you scratch your head a little bit. Uh, I don't really know. I Maybe they won't do a secondary offering.

Maybe they won't. Um, and maybe there's other reasons that the stock is up as much as it is aside from the news. Um, but you know. the thing is, of course you know this: We see stocks that have great news and the stock ends up going up a teeny bit and then dropping the one of the trades that I'm read on today.

Um, Raya News was out this morning of a 400 increase in sales in the first six months of 2020 22. sorry, uh. stock goes up uh, and it's not able to hold. So you know that seems to me like pretty good news.

but I wasn't able to hold. ended up losing 900 bucks on it. So it's uh, it's certainly interesting. uh, the price action on some of these in this case.

I Think that some shorts got trapped in this area here, of high volume consolidation. What it looks like to be fading. What seemed to be some big sellers um, you know, stacked up on the ask and then uh, all of a sudden those sellers were gone and off it goes. Remember, we actually saw something like that a couple months ago with maybe a month ago with like a 1.6 it was a 16 million.

It was a huge seller, huge seller. and then all of a sudden the order was gone and people who wanted to buy to cover a short, there were no sellers for them to buy from and then the stock just rips up into a halt and off it goes. So I don't know uh, how much higher this is going to go today? I'm happy with where I sit on the day. Um, a green day is great.

We're coming to the end of the month, end of the year and I'm just happy to chip away a couple more green days. I'm a little bit bummed out that it was as choppy as it was this morning and the fact that it was that choppy I was like man, there's something funny about this stock because we shouldn't be seeing that kind of Liquidation on these candles. Why? Why is it flushing that hard? Really hard on this candle. This candle? and this candle so that that to me was odd.

Uh, and then you know you've seen more price action that's been pretty crazy today. So anyways, um, it's a green day for me I'm happy with that. Didn't make a lot on kala Kala, but green on it Lucy I Traded that one earlier today as well I did a bit better on this one. Uh, but of course this one uh, has now faded back quite a bit.

There were some trades here uh, around 155 156. nice break through this resistance at 160 and then got back in right here going into the open and we got a nice squeeze up to about 177. Did not break the pre-market high of 179, which is what I was hoping for, but got a couple decent trades on it. Uh, but that ended up sort of fading as Kala picked up some momentum and took off.

So good job for those that got green on it. Um, certainly those who stayed around a little longer and traded longer in the day were rewarded for that today. Like I said, as long as you were on the long side um, and maybe some short sellers got punished for well I mean, or maybe trading olds too long or not taking the gains off the table. and then all of a sudden next thing you know, it's ripping up and you're trapped.

And that's the thing that's really frustrating is that you you would have been able to get short uh without a lot of problem during this consolidation period with high liquidity and then as soon as it starts to break out and become volatile, the liquidity is gone and now it's really hard to cover without getting a ton of slippage. It's hard to buy without getting slippage and you suddenly get uh in a matter of you know, a couple of halts, a 100 squeeze from Seven up to 14 and then up to a high of 17. pretty crazy Anyways, um I hope you found that Interesting reminder as always that trading is risky and my results are not typical. so make sure you trade cautiously, practice in a simulator before you put real money on the line, and don't try to blindly follow me or anyone else.

All right, take it slow and loop back at it first thing tomorrow morning for the morning show. Uh, right around 9 00 a.m All right, I'll see you then.