All right. Well, uh, it seems like today we've got a clear Trend and the trend is that recent reverse splits are what is hot Now the recent reverse split setup. This is something that I talk about extensively as part of the Warrior Pro curriculum I have an entire chapter dedicated to recent reverse splits because it has been such a long-running theme in the market that we get these um, you know these these big squeezes on recent reverse splits. So um, just to highlight this for a second, um, the and I'm already sitting at twice my daily goal I'm at 10 994 dollars and seven cents.

so in good shape here, which is great still watching Pixie Recent reverse Split: Uh I am an IMM watching recent Reverse split and Ifbd I have my eye on that one as well. Recent reverse split. Uh, Inlx is another one today. that is an up list that's a little diff different, but that's similar to Atxg and another one that we had earlier in the week.

That gave us a nice move. so we'll keep the uplifts on watch. But in uh, chapter 8 for Momentum Trading I have I've broken that up in a sort of an interesting way. So the beginning of chapter A let's see if this is chapter eight down here.

Um, so these are technical long setups so like the ABCD pattern, this is this is a chart pattern, right? And then we've got, you know, the half dollar whole dollar entry. So those are all chart patterns and they're great chart patterns that I trade every single day. And then we have this second section of chapter eight which is focusing on the stock type and these are. There's a couple different ones that we talk about, but let me just pull these up first.

Um, let's see. so Daily stock type setup One scalp trading Breaking news here say So here's the reverse split setup. So the reverse split setup I mean it has just been. These are all examples of recent reverse splits where you get the reverse split, you get the big squeeze.

So how does this work? What happens with a lot of these small cap stocks is that they they have to maintain a minimum price of one dollar a share. If they don't maintain a minimum price of one dollar a share, they risk being delisted off of the Nicci Nasdaq exchange. And that means sent down to the OTC market. That's not good for stocks.

If stocks surge up when they get up listed. they also go down when they get delisted down listed. So it's not a good thing for a stock to get knocked off the big exchange. And so, to get their stock and their price back above one dollar, they sort of have.

um, two things they can do. They can either be a better company and be more profitable and show investors that they're worth investing in. And of course, that's hard to do, especially when you are a very successful company. And so the second thing they can do is a reverse split.

So like when Apple or Tesla does a stock split, their stock goes from 700 a share to a hundred if it's like a seven to one split. So Pixie just did a 1 to 100 stock split. So if the stock was trading just for instance, at 40 cents the next day, it's trading at forty dollars. it goes up that much.

So while the stock price goes up, what happens to the total number of shares outstanding as they go down? Because if you're holding a million shares at 40 cents the next day, Once at forty dollars, you're like, oh my, God I just made 40 million dollars. I'm rich. Well, no, you're going to realize you don't own a million shares anymore. You own.

Um, well. whatever. it is a hundred thousand or ten thousand shares. and uh, you own it at a cost basis of forty dollars a share.

So the float goes down. So when the float goes down, the total number of shares available, the supply goes down. And what's very common is directly following a reverse split. The company will also put out positive PR's they want people to see and notice.

Oh, there's some good news happening. The stock is back at a regular kind of normal price. It's not a cheap penny stock anymore. and now with a very limited level of Supply, that spike in demand created by news can create a big surge in price.

The stock squeezes up and then you know what they do. Oftentimes when the stock squeezes up, boom, they hit retail. Traders with a secondary offering direct market price, direct offer priced at the market and they leave all those retail Traders Holding the bag. and then the stock starts its decline.

It starts going back down and it can go lower and lower and lower and lower until they need to do another reverse split. and then the whole thing starts again. And so you'll have this pattern where stocks these small cap stocks do these reverse splits and you'll see this one. This one has two reverse splits here and so when we back out the price, it makes it look like this stock had an all-time high of 40 46 000 a share, right? Well, but that's because the stock kept going lower and then they did the reverse split.

So what does that have? What happens to the previous section of the chart? Well, it just it has to go up. So it's almost. The reverse split is almost a way of allowing a stock to go down more and to go down infinitely. If you keep reverse splitting a stock, it can go down forever.

Now that's kind of sad, but that is what sometimes happens. And it's very common with Biotech um, stocks, because a lot of those stocks they're in the R D phase are trying to raise money. They sell shares on the open market. They don't end up having every anything productive coming out of their you know facility or their their business.

so the stock price just keeps going lower and lower. But they keep attracting new investors to, you know, fund the stock and they just have to maintain their listing. uh, minimums of a dollar. But you know, So you'll sometimes see stocks that have had four, five, six reverse splits.

you know, doing them on a regular basis and eventually the stock can get delisted. But what can also happen is these companies that maybe in some big institutional Traders think are probably going to go bankrupt? This this company is probably. and I'm not saying this about this particular one, but just this is what people say they'll think you know this company's probably going out of business so they start leaning into a short position. You know the it's a company that is just dying and it's just fizzling out and so these big institutional Traders these hedge funds they'll short these types of stocks.

and then what can happen is when all of a sudden you get this squeeze here and the stock goes from 11 to 35 dollars a share. it's up 300 percent in two days, you know? Or in this day here it goes from Fort to low of 11 to a high of 44. 400 500 in one day. And while for a retail Trader you know that kind of move maybe gives you five or ten thousand dollars of profit for an Institutional Trader with a lot of money on it, that's a huge swing in the P L.

and that's what can turn into an epic short squeeze. And that's what happened on Drys Dry Ships back in 2016. I Think it was, uh, it was a stock that had been beaten up for a long time. A lot of people thought it was dead, dying, was going to go bankrupt, big Institutional Traders were shorting it heavily.

They did reverse splits and then all of a sudden the stock squeezed from like five dollars to a hundred and Seventeen dollars a share. And it at the time was a massive short squeeze. and you know, uh, obviously it happened to a certain extent on GameStop although I don't know that GameStop had ever ever done a reverse split. um I I Don't think that they had, but they were.

obviously um, you know they they bottomed out. they got pretty low at a dollar a share and got pretty darn close. and of course a lot of investors thought it was. you know, a dying company and I had there are reasons to short it anyways.

Um, so while long-term short perspective probably does make sense on a lot of these, in the very short term, and in the context of a day trade, there's opportunities when we get these short squeezes. And you see this kind of rallying back up now. So this is the one that I've traded today. Um, I've done fairly well on it, but it's also been a little choppy, so we have a couple reasons to be cautious.

Right now, Macd is just starting to cross back over in the positive, But if you notice on the one minute, we have had a total of four, one, two, three, three nasty false breakouts. So we've had three nasty false breakouts. that's uh, you know that's not great to see, so accumulation off of moving averages down here is probably going to be a safer bet than trying to buy breakouts on it. There has not been enough strength for the breakouts to hold, at least not yet.

Now, as we get further into the morning, they'll probably be a bit more volume. We'll probably have a lot of volume at the opening bell, but this is also still squeezing on news from yesterday. so it's not. Um, you know it's not like there's fresh news on it, so I think there is.

There are some good reason to be a bit more cautious. If you're just sitting down now and you didn't capture any profit on it earlier, this might not be the spot to be. Um, you know, taken taken a lot of risk so we'll see. Um, it's still relatively early.

it's 8 55 if we get, maybe consolidation between now, and the opening bell between 33 and 35 it still holds, then maybe I'll start feeling confident accumulating a position. We had a really nice, um, it's almost a bear trap right here. right there. we broke down.

We broke the 20 moving average and we broke this yellow ascending support line and then it ripped right back up on one of the biggest green candles of the day. Nice candle. from a low 32.85 to a high of 35.. So that's like a three-point candle in one minute.

That's awesome, but it didn't hold and then it came back down. so you know it. So I'm feeling a little cautious on it. Uh, and I think one of the things just to be aware of with these recent reverse split stocks is that they can be very volatile.

Volatility is great, can make money with the volatile stock, but you can also get trapped. And I've had stocks like this where they start selling off and I think that I'm going to buy the dip and it just keeps going lower and lower and lower. And next thing you know, I'm down three four, five dollars a share as it breaks V app and sells off back to like 20. You know this: this could I this could go back down to 27.

28 a share and that could happen. And so you want to be really cautious trying to buy dips thinking it's going to reverse like right here you're seeing a fairly big sell-off and to be honest I want to buy this dip because it's right off this level that we've tested multiple times. But I'm a little scared. the low is 32.84 and view app is here at 32.56 Like this could be literally exactly what I was just saying of getting in too early and it if it breaks V-wap then it feels like the Bears are in control and you know, so that's that's a risk factor.

Um, of course we could have another bounce back up, but Macd is not super supporting the trade so the low here is 32.63 3263. So watching level two on it and mitigating the risk of smaller share size? uh, potentially. but um, I just want to see if it's going to hold because this is an area where we could end up having a little bit of a problem. Let's see what it can do.

Go on girl, go lay down. All right. So we're also coming up to the top of the hour. Our leading gapper this morning is DMS Received a non-binding offer to take the company private.

Uh, it's up 58 Mogu, it's up 37 Can check that one real quick while we just kind of keep a half an eye on Pixie. So M-o-g-u it's not a recent reverse split. so I don't even know why it's up. Today announces 10 million dollar share repurchase program.

Okay, so share buyback? That's pretty good. Jzxn. Um, 10 million dollars different than 10 million shares of course. Um, jzxm stair stepping down below V Web: no good IMM this one I looked at a little earlier look I like that one right now it's almost outside.

Sarah is both the outside foreign about that? Okay, so um, all right so we're coming up to 9am top of the hour I don't have anything else I'm watching super closely I am. and yes, it's a maybe if we get back over 12 overall Market S P 500 Uh, bouncing off the ascending support trend line that I had mentioned earlier in the week. So ascending support right here bouncing off that level. we're coming back up to 404 405 so that's good to see overall.

Market Uh, basically just between these descending and ascending resistance and support lines. Okay, so Pixie still just on watch bigger red candle there watching top of the hour just to see if there's anything that starts hitting the scans but not seeing anything just yet in LX is a up list from the OTC markets. So we did have obviously an impressive move on Atxg, which was also an uplift. So you just want to be aware of the fact that uplist can also be a, um, a catalyst just like reverse splits or recent IPOs So you know there's a couple categories of stocks where you have because of the type of stock, the condition, the potential for something pretty impressive to happen.

It doesn't always happen, but we've got that potential all right. So welcome to those tuning in on. YouTube Here for the morning show. Thank you guys for being here! As always.

reminder: Trading is risky. My results are not typical, so make sure you take it slow practice in a simulator before you put real money on the line. Don't try to blindly follow me or anyone else. most, uh, beginner.

Traders Do lose money, so trade cautiously. The YouTube broadcast is slightly delayed behind the ultra low latency streaming servers that are going out for members at Warrior trading and day trade Dash All right those you guys that didn't check out my podcast I had a new episode that we uploaded on Wednesday Five mistakes for beginner day Traders especially to avoid So I hope you guys check that out and thank you as always for those who have been doing ratings and reviews. those are great to see so thank you for that. Right now I'm sitting uh into Green 10 994 dollars.

it's my 40th consecutive Green Day right now and I would like to try to finish the day with at least ten thousand dollars in profit. which means I can't really risk more than a thousand on my next trade. so I have to start reducing risk a little bit. Um, it's been, you know, a little stretch here this morning where I got some really great trades between 8 and 8 30.

uh and between I guess 8 45 and now so far I haven't had anything so Pixie is on a pullback in LX you know it's a side chart so things are just kind of slow right now just keeping an eye on a couple of these things right now. Uh also I wanted to. Um, yeah, I'm not going to try to force a red day today. Um I guess that's not gonna happen I did I did say that? Um, and next week I'm gonna be on my traveling trading station.

So uh, I'm a little bit nervous about being you know, on vacation so to speak and then having the pressure of maintaining this green streak. I Was this week planning that I would force a red day that if I had a day where nothing looked good I was just gonna buy like 100 shares of a stock and sell it immediately on the bid and put myself in the red on the day. So I break the green streak just because of the pressure of maintaining a green streak can be a little bit distracting. but I have not had any day this week where I haven't taken any trades So and I've been green every day this week so it just hasn't happened.

So I haven't been able to force a red day just yet. Uh, but uh, I'll just be cautious next week on The Traveling trading station and um, try to just stay focused I will trade a little less next week. uh, probably than on a a typical Um week. but you know that that's um, that's that's fine.

So um, and yeah, um and hey, good morning from wrong her mom's got his million dollar badge. Um, he's the 11th member to get the badge. so good job. Super proud of him.

Love seeing that. Um, really, that's great to see. So anyways, um, we've got about 25 minutes to the opening bell right now I'm thinking, um, at this point you know Pixie is kind of in a period of lighter volume. The Macd is against the trade, so I'm just kind of sitting tight on it.

Maybe the cleanest trades are behind us I Don't know for sure, but um, let's see that is an impressive green streak that is record-breaking Yeah, I mean that's that's pretty awesome. Um, so a member who's got his uh, 500k badge said his last red day was in February So that's uh, that's a green streak that I can hardly imagine. Uh, is it worth noting that he's in Europe and primarily trades the morning probably not over trading afternoons very often. How many times have you come back in the afternoon and gone from green to Red Because I'm telling you I've had that happen many times just this year.

But uh, you know, at the same time, red days are okay. Red days for most Traders are a weekly occurrence and it's healthy to have small red days and to let a red day happen and to be able to brush it off and you know, move on to the next one even if it's a big red day. So I would prefer not to lose more than my daily goal which is 5 000. But you know, sometimes it happens and that's just the way it goes.

foreign. So let's see. Uh 25 24 minutes to the opening bell? Um, right now pixie getting just a little bit of a momentum, uh, backup. but the spreads are a little bit bigger here.

we've got to get back over 35. Ultimately, we want to see it break through that level, but we know that it's um, had a little bit, uh, of a challenge in these areas. So see that it was 60 on the ask and then flips down to 38 on the ask. So all of a sudden what happens to me? that looks like a big sell order limit order of 38 and you get that flush.

So this is probably an area up in the 34 75 35 area of wanting to take some profit. If I was in it, I would probably be in it from down here wanting to take a little profit and then wait for it to come back down to that area and see if it sets up for another attempt at um, holding the V-wap Maybe breaking it, but if it holds it okay and then look for the next move higher. Okay So the high of this candle here: 34.68 Waiting for a pullback foreign sending line here? Let's try to draw this out. So I'm going to add there at that descending line and now I'm going to look to add on this over 35 .

What I'm looking at is the Breakthrough 35 a share. So new order is going at 35 dollars. Looking to add a thousand shares at 35 for the squeeze up to 35.50 So we're looking for the break through the top of this pivot here. We've got this ascending support line so watch over 34 65 34.75 So putting an order here to add 34.75 to try to anticipate that move up to 35 dollars a share added right there.

at 50, there's 80 on the ask. Let's see if we can squeeze up to 90. holding 2 000 shares high of this candle is 75 New Order is at 85, there's 89.. Let's see if this wants to squeeze through 35.

So 35 is the breakout spot. We know that we've had a little challenge up there before I Want to make sure I trade cautiously as it comes up to that level and book some profit. Sizing down. The pivot here is 34.99 There's 34.75 on the ask size.

down a little bit watching for a second attempt at 35. about a 500 winner didn't break through 35. we'll watch for another pullback foreign. The pivots that I'm looking at are recent highs, so pivot there 34.99 and a pivot here at 36..

So yesterday at the open we had this dip and then we had a surge back up so it was pretty volatile. So just watching for volatility at the open added there at 3418. Now looking for the break through 34.75 there's 34.80 new order at 35. so high this candle is 88 watching the break of 88.

So there's 80 on the ask added to 88. There's 35 on the ask. But then the spread opens up right. Holding 150 shares added at 35, there's 35 15.

can we get 35.50 Let's see if this wants to squeeze up through 35.50 Hidden buyer added at 3512 Now looking for the squeeze through 35.50 So when I see a hidden buyer on the level 2 I certainly like that I want to see Ascension here I book profit as it moves a little higher and then size down and then look to add back on the Breakout. So to me, watching here for another dip added at 45. Now looking for the squeeze through 35.50 So we're starting to ascend a little higher here. Now watch over 35 65, 35 75 We're looking for a retest of 36 dollars a share as we go into the opening bell, watching off of 35 to buy dips.

There you go, there's 67 on the ask. a little bit of profit at 65. Sizing down, it's feels a little sluggish up here and that may just be because Traders are hesitating given that we're at the top of this range flat on the rest of the trade. I'll let it pull back and then watch for a dip.

You know we're coming back into this resistance area. Bought the dip down there as a starter so now watching off of V-wap added right here at 34. now looking for the spring back up to 34.50 This is back to this yellow line that we were looking at before watching: 3410 to break and then the squeeze back up added right there. 3410 Now looking for 34.50 reclaiming 34.

this is a bounce off of ascending support I did start descending support watch over 34.75 Let's see if we get back up to 35 dollars flat for now at 34. it's got to hold the half dollar whole dollar as it breaks over that. So first attempt on a dip trade. small loss right down here.

Sizing in adding comes back up to 34.50 breaks back below the whole dollar of 34. So this is the type of price action that we've seen on it and we saw this yesterday as well. The next level I would watch would be 32.75 That's around the volume, weight, average price. We've got about 10 12 minutes to the opening bell added back down there for the pot back over 34.

still trying to dial this in for a reversal. There's 3417. let's see if we get up to 34.25 there's 3415. Nice flat, small winner.

I Think maybe a break-even trade? No. Carl I Don't really worry about that from a technical perspective, but I I Do worry about this like bearish engulfing candle. It's such a big red candle with high volume. I'm concerned that this is just not a good sign coming into the open here.

so we needed to ascend and squeeze and we ended up ascending and then rejecting. So that marks the fifth rejection at that level. so something to be aware of for sure. So I still want to walk away with at least 10 000 today? I have about eighteen hundreds a hundred dollars that I can take um, as risk on the next trades.

Added a little bit of profit in that range, but not too much. All right. So uh, for those tuning in on YouTube Thank you guys for hitting the thumbs up. Thank you guys for being here today.

Foreign so we're coming to the end of the week. It's been a pretty good week. I Haven't uploaded my trades um for the week yet, but uh, let's see what's up. 12 or 13 000 yesterday and plus another 11 000 so far today.

So it's about twenty three thousand, twenty four plus Monday and Tuesday So probably at about 25 000 on the week, which is good. it ends up being basically right at the goal for the week I had a couple of slower days on Tuesday and Wednesday Of course the market was closed on Monday so I had to make up for it and I did with a good day Thursday and a good day here Friday So coming in basically at goal for the week 25 000, 5, 000 daily average. it's the goal, but it was a short week and it was slow on. Tuesday Wednesday Uh, I'm sitting with about thirty two thousand dollars of profit from last week, so 32 plus 25 puts me at about 47 000.

So 47 of the way to my goal of 100 Grand on the month and we have three weeks left. so I'm in good shape. I will be on my traveling trading station next week and you know I could I can do perfectly well on it I trade on it quite a bit, but you know we'll see. Um, um, we'll see.

So yeah, and there's the the. The approach of day trading is just so different from the approach of value investing. If you're value investing, you're looking at these companies and you're looking at their balance sheet. You're looking at their earning statements and you're like these companies are.

probably. they're probably trading at a much higher price than the company's worth, and it's probably the right bias that this is a short long term, but it could squeeze to 50 before it turns around. And if it squeezes to 50, that's a great opportunity for a day trade. So as a day trader, I'm focusing almost exclusively on technicals.

The extent that I focus on fundamentals is that I like to see that there is some news I prefer that it's not required. Certain types of headlines can give much more momentum than others, so you know I keep that on watch. but you know, um, that's you. know, that's about it.

I mean I do look at the filings a little bit. Uh, in certain instances I look to see if there's shelf registrations and things like that because you can get those secondary offerings in the middle of a trading session and those aren't great you. you don't like to see that happen. So there's a few things that I'll keep a little bit of an eye out for.

but, but that's about it All right? So um, thank you guys! uh Again on YouTube we've tuned in. Thank you for hitting the thumbs up and I'll see you back here first thing on Monday morning. I Hope you guys have a great weekend! If you want to use our coupon code School Spirit 40. That'll save you 40 on either the Warrior starter bundle or the Warrior Pro Course you can come over to Warrior Trading and check them out.

There's also a 30 off coupon code for uh Labor Day for day trade dash For those that just want the tools. So check those out and study up this weekend and let's get back at it first thing Monday morning. Thank you guys as always for tuning in. I'll put a link to a couple other videos that you guys can check out right there a reminder.

As always, trading is risky. My results are not typical so make sure you take it slow and practice in a simulator before you put real money on the line because there is no guarantee you'll make money. Take it slow. See you on! Monday.