What's going on everybody, bryce toohey here with stocks to trade for small cap recap uh relatively uneventful day there were movers. I just didn't happen to hit one of them that i'll get into in a second here, then we had rdbx, which was a total chop fest, but before i get too far into these charts, i do want to introduce a guest that is coming on today, but More importantly, not only a guest on the show, but a new moderator in small cap rockets, jack daniels introduce yourself a little bit about who you are. If they don't know you um, i'm pretty much. Just like a short i'm, a really big short seller, pretty much uh, it's 90 of my strategy and the only times i go long is when it was a situation where i would be getting squeezed out of normally.

So that's a it's honestly, always going for the biggest momentum, yep um jack uh. You know you're pretty active in the the sykes challenge: correct yeah, like the channel chat yeah. So for those of you who might have heard his name before seen him on twitter, um, he's very active in the challenge community and he's now a moderator with us in small cap rockets to join myself and matt monaco. And today, i believe is your your first day in chat right, we're working on getting them the moderator permissions, but you were in chat today talking.

Everyone was uh chatting with you um, oh yeah, yeah, very much walking through all my thoughts on uh redbox. Throughout the day, yeah, and so without you know we'll we'll get right into that chart. Now, of course, let's talk about the spy. Real quick broke, a pretty key level there.

What like 409, that 409, was a pretty key daily low, all the way down to 405, and now bouncing do you do you watch the overall markets like out of curiosity? Do you ever use that as a indicator gauge to momentum in small caps um? I only use it when, like the volatility indexes, are spiking really high, because typically, when the volatility indexes spike really high, that's when everybody's getting super emotional and when people get emotional, that's when you see the most traders come in to like actually trade. I like that. I like that so emily yeah and then they go to small caps exactly and it's i've seen some pretty wild charts about like just the overall. I think the i can't remember if it was a market cap valuation or volatility in small caps like at its lowest since, like 2008., it's one of those two uh um stats.

I can't remember which one it was, but it makes sense we've seen a lot less. I say a lot less runners, but like that's not even it's just these multi-day ones have been a bit tougher um. I say a lot less because we're coming off of oh yeah, a crazy amount of runners from 2020 and 2021. Obviously, but that being said uh you were mentioning rdbx, um redbox here, so talk to us a little bit about this.

I remember that was one of the first uh things you said in chat this morning was talking about rdbx, so go go right ahead and give us your how you traded on it um and basically what your thoughts were going into today. Yes, so um friday, that's actually when i was just starting to trade this stock, because it was multi-day runner, it was extended and it was gapping up and i shorted it and i actually got squeezed out so as it kept trending throughout the friday, it became a Very high volume breakout day on the intraday or on the daily chart. So that's why i started longing it into the clothes pretty much and there's a little bit of a dip, and that's where i accumulated most my size so going into uh today, once it started. Spiking i began selling and trimming and i was up nicely, but then there was just that massive crack in the morning.

You know i thought to myself. Okay, i guess that's it for the show. I mean it's dead and i had a couple of shares short into the bounce and then it squeezed me out so i'm like happened again same exact move as like you you're out of this overnight you're over the weekend, yeah, okay um. Where did you get out of curiosity? Did you get short into this into this push, or were you already short on friday uh, so that big wick in midday yeah, where it hit yeah up in the fives five yeah i covered about, like i covered my short, like 20 25 minutes before that wick Gotcha, okay, so i was like man, this is grinding and it was just annoying and i hated yeah.

It was just terrible yep, it's so brutal. It's a very, very even for a long though, because you're like you watch it dip, come all the way down. You expect it to be dead and it's really tough to justify getting back in mid day for so like for i'm primarily a long trader and i'm like okay. Well, it's the middle of the day.

It's just grinding around and it's just coming off of like fresh intraday lows. I don't know what to do with this, and then you get that i'd have. Did you get short after this at all or no after this? No, no, then! No after it frustrated me and if it frustrates me, i stopped shorting it because if i'm getting frustrated, i know a lot of other people are more frustrated 100 and then you said you started getting along on these uh on some dips. Afterwards right, uh yeah.

That sounds accumulating because i noticed the volume i'm like wow. This is almost traded like 100 million shares today, and i feel like that was just so. A lot of people are probably you know, curious about, because you are, you said primarily a short seller, and then you go along when you essentially the short uh, a heavily convicted short fails: um yeah you're, a dip buyer, though right you're, primarily a dip buyer. On the long side, uh yeah like i, i guess i classify more as like following a trend, so i mean sometimes i'll even buy like a little bit into strength.

I know how many shares i want to buy and i know where i'll be risking them off of so i can kind of like build an average around that it's. It doesn't really sound good. I mean it doesn't work for many people, but it helps me just follow the trend. No, i was gon na.

I mean really the dip buying. That's something i'm trying to get better at, because that's really where you're going to maximize risk reward on the long side and it's let's be real on a on a a short squeeze. Our potential short squeeze or supernova stock you're gon na get the best risk reward. You're going to essentially uh you're buying strength on the daily but you're buying dips.

On the intraday i mean that's in theory, it's it's the best. It's pretty tough to effectively do though um, and so i got to ask that when you first you know kind of got, maybe not first got started, but when you really picked up, were you mainly short only or were you still longing? You know back 2020. 2021. Well, oh yeah, yeah 2020, i was, i was shorting um only almost exclusively okay yeah and that's when i had to begin like learning more tough lessons again because the market just got so weird, like offerings created an even bigger supernova.

You know it's just always stuff. Like that, no it's a game of always adapting for sure, and so then, when you started longing what what enticed you to dip buying versus like buying momentum, you know buying breakouts um, because i think that's a great great addition. You know to the room: is someone matt and i generally tend to trade uh more momentum based, you know we're trading, either trend breaks or maybe a high day break and you're coming more as a as a dip iron. I know you said you do sometimes buy strength too, but uh what enticed into dip buying? Is it mainly just because of those because of how you learn to trade on the short side yeah, because stocks will set up these levels and typically it'll go through these levels and just slam? Because that's where, like a lot of people, come in, they just like chase the market up, but there's like oftentimes shorts coming in waiting just smack the order down like when it redbox broke uh through the high a day.

First, i was long and i was selling a bit into it. I didn't sell nearly as much as i should have, but that was one of the things i was really warning. Everybody about. I was like watch in case this like really just slams.

You know because there's so much like volume there yeah yeah right now. As i said, if the range gets small and it goes sideways, i would probably ditch it and i i didn't listen to myself, so i was puking them out at the bottom. I mean dude. I've gotten trapped by this stock so many times it is a tricky one.

No, i remember watching this run, i think, on thursday it was um, and this day here really really piqued my interest just because of this it had been forming that base after making those a quick, little multi-day move there, and i was hoping for just bigger, but Like you can almost see how controlled it felt - and i know it's a much lower volume, but then the same story felt in here where they were just trapping everybody it felt like everybody was getting trapped in the same same today, and it's like, i always try To look back at how stocks have traded in the previous days of their runs, and today was no exception. I mean yeah. There were a couple nice, a couple, nice long spots for me personally, but not i mean even you get the high day break if you're chasing that you're screwed right you're buying at 10 and all of a sudden, it's got nine two minutes later same thing here: You're buying that 1070 break. We were talking about that before we started recording right like after this walk-up happened, a parabolic move just seemed inevitable, and yet it's still slammed back down in the eights um choppy stock for sure and like usually when i see stuff like that, it just says to Me give it less attention.

The next day i mean odds are there might be like a really good sympathy, play that'll pop up, and that would have a much better chance of losing all of its gains when the momentum finally switches don't bother getting trapped, and so that was your. That was your main main stock. Today, right um, really, the only thing you traded cool cool, pretty much yeah and then so. For me, i i did trade rdbx um.

I i got long here in the nine uh 990s just for the secondary move. Unfortunately, i did not sell any to this break because again my thesis was we're going parabolic and i ended up selling uh partial. Actually, no, you know what i did. I ended up scalping part of my position into like the 1040s right here, uh just in case of a high day break and then slam, but once we got this wick and then the recovery i was like.

Okay, another trap is set in place and then yeah. I got a very fortunate sell here on once once this just this consolidation here, i trade a much smaller time frame. You guys know and um. What's this consolidation couldn't lead to another push it it just to me it seemed the risk of uh failure.

Just seemed a bit too high and ended up cutting there in the nine nine ninety. So you know what could have been a really nice trade ended up selling for a pretty small win, but it was. It was certainly a choppy one and again probably one i'm gon na have to avoid on the long side unless something crazy happens, um that makes it too hard to ignore, but this setup in here would have been perfect for that continuation to like 12 to 15 And if it couldn't do it today, i i struggled to believe that it could do it again or do it. You know the next day uh.

I also took a few trades on frge. I've been watching and kind of butchering the bigger picture trade idea here. Um was got a few on this day this day and today was the real actual breakout over 21, which i was waiting for, but for those of you guys who you know, follow me on twitter, you know that i've been mainly trading the afternoons just because i Get chopped up in the volatility of the morning, i haven't had a great success on the long side in the morning and by the time the afternoon came around. I mean i remember watching it this morning in the 20, this breakout area - and i was like do i break my rule and trade early and just set a stop on low day, then walk away, and i didn't do it uh a little mad about it.

But it's okay: i've got a couple scallops down down here and sold into these pops um and then one more through 26, like 40 uh and then sold up into the 27s, but nothing, no crazy, big move or anything again. It was like the all-day trend. I just did a pretty bad job at because i was waiting for the afternoon and then probably the most annoying one jack, and i were just talking about before this. Someone had asked asked me in small cap kind of my thoughts on bttx and i haven't seen a lot of.

Let me check that multi-day chart quick the daily, so it was a day one gapper um. I just haven't seen a lot of these stocks that gap and do nothing all day end up. Turning into a mass, i mean this reminds me a lot of um, some of the the less uh. I don't even know what i'm looking for, but this reminds me like 20, you know 2020, where you'd get a gapper that just didn't really do anything and at the end of the day, was like a delayed catalyst, a delayed reaction to a catalyst, and you get This really beautiful push, and i just completely ignored it and for whatever reason it was on my chart by the time i pulled up my uh my screens here and i was like wow.

That was really nice. I mean the entry for me. I mentioned in small cap to whoever asked that question was like 128, this break here, and there was really nice. Risk was like 11 risk and it ended up going like what did it over two dollars.

That was a beautiful move i never would have held for that whole thing. I probably went out in this high a day push because when it, when is the last time, you've seen like a real high daybreak lead to further follow through it's been forever since i've seen a day, one gapper do that yeah! No, it and honestly, even just seeing like the end of day like ramps, that's usually what i call them. I mean yeah, it just doesn't happen man. I i genuinely don't think i've seen this pattern happen this effectively.

I want to say, like three or four months minimum right, like these used to be great. This used to be fantastic. This was a like a really my buddy dan irish. He this was like one of his favorite patterns and i just haven't seen it work in a while, and this is, i guess why i like afternoons, because you do get if a stock is strong and holding there's, obviously better odds for follow through.

But like this level of follow through i mean this - it just at the end of the day alone, moved like 80 in the past like hour. So that's good to see that's working again, um and i think that's basically it for small cap uh stocks that either one was watching trading or giving thoughts on. But out of curiosity, you know with with this kind of action you know we do have we like. Let's pull up this daily chart.

Real quick rdbx came from a dollar two dollars, whatever it was this first, you know day of the i guess, even back back in here like in the two dollars, then faded back and came back from two all the way down to 11.. There's. Definitely that multi-day move potential, but, like i don't know, i want to hear your thoughts on this a little a little tougher to trade. I mean this doesn't feel like a swing trading market to me.

Yet i look at this chart like wow. That was a beautiful multi-day breakout. I mean it's like pretty much from the five dollar breakout level to 11 right now, so it's six bucks of range, three bucks off 11 would put it at about eight dollars a share. So it's right around.

Like mid-range, i mean the only way, i'd really consider trading, it is one be smaller than i normally would go tomorrow on the short side and then two i would only trade it if there's some scammy gap up gap up and just push out random people, and I mean, as far as i know, this is just as big of a blow off top days. It needs yeah. What's i'm not going to trade at mid range? What's the i mean the cyn had that pretty scammy gap up this morning. I think um yeah.

Yes, that oh yeah, that reminds me of i can, i can't remember the ticker, but this was like a very popular pattern. A few months ago like we would get this one or two day move now. Cyn, of course, was just grinding through that, even after yeah it was straight green days, yeah! That's i could. I found no interest in trading it when it just was clearly felt manipulated, but yeah.

That pattern was just very prevalent a while back we'd get this. You know this big push and then just dump all day and that's what cyn ended up doing, but so that's assuming something you're kind of looking for on red box tomorrow yeah. It would just be like that and if not i'll eat my borrow fee and move on yeah, i have no interest in like uh or no mindset where i have to kill this short. I have to make a bunch of money on it.

It's just not worth it because, like we've seen how scammy it's been 100 and that's - i guess one one last thing to ask: is you know a short seller? You know you do pay borrow fees and for for those traders who are you know a bit newer. Can be tougher, i feel like when you pay all this money for a borrow and you feel like you have to use the shares any like little mindset. You know what what do you say to get around that? Obviously you're gon na talk about. Well, if you pay it and then also lose because you're over trading but like have you ever dealt with that and if so, what do you say to those like newer, short sellers who go through that? Oh yeah totally, you have to really be conscious of like how much money, you're spending on fees and stuff, because you're gon na have commissions, you're, gon na have to borrow fees and then a potential loss.

So the way i do it is let's say i have about 500: that's my risk in a trade and if i'm risking five hundred dollars, i would expect that i could make anywhere from a thousand to like two thousand dollars, because if well, i'm not gon na Get into actual numbers, but if i can make up to like two thousand dollars - and i would spend about like a hundred bucks max on bars or something or another system that i would use, is like one percent of the uh market price of the stock. So if it's a ten dollar stock, one percent would be ten cents. A share right is that is there that sounds great yeah? That's not good you're supposed to be really good at math dude. I can't i'm i suck at math i'm good at math, but i have to think about how to talk.

You know what that's fair. Normally i just say things and hope it all makes sense. Um! No, that's that's fantastic, though that's that's good. I actually never even really thought of it that way again, i'm not much of a short seller, but when i went through my i've gone through my short selling trials before and i uh i never i'd just be like.

Oh, if it's gon na work, i don't care how much i'm paying for the borrow and i'm like wow, that was, i paid i paid as much as my risk tolerance for the borrow fee. Yeah. Oh yeah. I've definitely been there before and i mean it and then when it doesn't work out, you just get double whammied and you're like okay.

Well, that's unsustainable! It's cost to doing business right yeah exactly and that's why i like to keep it smaller, because if i'm only spending 100 bucks on borrows um. Ideally, the stock just gets to the perfect price that i want to trade at and then i hit it and that'll be like uh. An x it'll be extra higher than like other short sellers, so i would make even more money than them, because i would be like shorting it to their covers. Absolutely absolutely, and if i just eat the hundred bucks, then i mean it was less than my risk.

Anyways right, no, it's it's it! I i assume, that's probably part of the key. It's like you're, just saying you know really make sure. You've got that dialed in and you're not overspending on borrows, and you don't feel i guess. If you're not overspending on borrowers, you probably feel a lot less tempted to use them too yeah, it's all about being non-needy on the short side, 100 um jack.

Anything else you want to say here before i uh before i wrap this up like any any big things you want to say or anything on your mind, no nothing's. Really. On my mind, i mean thanks for having me and let's, let's get going, let's get trading yeah for sure, guys for sure and uh guys before we let jack go here. If you do want so jack is obviously you know, we've been talking a bit of a short seller.

He does long too, but that's, i think, a really awesome addition here in small cap rockets again matt and i are primarily long, biased traders and if you kind of want some insight on the short side, i think one of the best ways to learn. You know either side of the of you know, trading whether you're long bias or short bias is to also understand why the other side is taking their trades and kind of it helps one gather an educated, uh opinion on a or helps to gain an educated thesis On a stock right, you're, not so biased, one way that it has to run um and or vice uh, vice versa, uh. You know why i might not be long, biased or why jack might not be short, biased on a stock too. So if you guys do want to you, know, uh join us here in small cap rockets, you're more than welcome to sign up with the link below for a trial uh, where i think it's it's either 7 or 14 days.

I think you'll get to just kind of see how we trade, how jack trades and really learn our thought process. Throughout the day i mean we're in there most of the day. Um we all kind of stagger different times, but jack has been very active today and i i know a lot of people got a lot of help from him just in his first day here so jack. We're super excited to have you on board man and, like i said down in the link in uh in the description, there's a link for that trial, uh to check us all out.

So, like i said jack, thank you so much! Oh! Can i do oh look at that? I don't even need the chart up, oh side by side yeah, now we're looking cool we're almost like in the same room um. Thank you uh. So much again for joining me on today, uh you're, more than welcome to come on anytime. I just thought this would be a great way to introduce you to the small cap rockets, community, oh yeah, and by the way, don't expect me to be like typing off throughout the day.

I have a feeling today was rare. Just because, like i wait for these uh redbox days like religiously, i'm always waiting for these massive liquidity days no 100 and like that's right, that's no! I'm the same way you know like if i'm not yeah i'll, be very blunt. If there's not a trade out there, that's the there's, there's no reason to be over trading. It's a great time to get screen time and if you're, newer and trying to learn these different patterns and whatnot, it's a great time to study.

But it's not always a great time to trade. So that's! I think, that's what we're going to be doing really well here if the market stays a little on the choppier side, so um anyways guys. Thank you so much for watching be sure to hit the like button, uh, be sure to comment down below if you're excited to have jack here in small cap rockets and make sure you subscribe to the channel i'll, see you back here next when or well this Wednesday uh till then trade, safe trade, well stay disciplined later, guys see ya. We hope you guys enjoyed that last video thanks so much for watching and being a part of the stocks trade community - we wouldn't be here without you guys be sure to hit that like button and subscribe to the channel.

If you haven't already, our goal is to get 100 000 subscribers by the end of the year, but we can't do it without your help. So if you enjoy what we're putting out and want to hear more, be sure to hit that subscribe, button i'll see you guys in the next video.