A pattern that we've been seeing working a lot lately is that day, three surge pattern today, we're gon na be breaking it down. So welcome back everyone. I am lead trainer with stocks to trade, and this is a pattern, you'll kind of to flesh out a little bit of what i talk about on the stocks of trade advisory. Definitely, click that link below i go live every single day: 8.

30 eastern every market day, i should say - and it's really rapid fire and i'll call out you know weak, open, ready. Greens v wap holds day three surges breakouts. You know i i really run through as much as possible to get pack as many trade ideas in the time allotted, but a lot of you've been emailing me dm and me and say: hey what is it? What's that day, three surge, that's not in the ebook, which i got plenty of books coming, but this is that kind of newer pattern, so it isn't in the ebook and let's break it down so hook is a great example and one reason i love hook. So much is fast forward to today, i'm recording on february 18th 2022 and we're going into a three-day weekend with president's day and we've got a bunch of saber-rattling back and forth with ukraine and russia and notice.

I mean the market's getting destroyed, we're getting ready to take out the lows from back in mid-january. If you remember january 2022, very, very sketchy market - i mean it looked ugly. Then we get the bounce. Everything looked great kind of going into february, and now here we are again: listen, i'm no alarmist, but when you're talking the you know, the two of the biggest superpowers kind of going back and forth markets, don't like that markets get scared and that the reason i Bring that up is fast forward back to hook here it is, i'm recording midday, this thing's doing the exact opposite.

So this is what we so often look for, no matter what the pattern is, we always try and find stocks that are that that are disconnected from the market disconnected from reality, because that brings in that fear and greed aspect again. There's something you'll hear me say on a lot of these videos when we're talking short-term trading, and this might throw some alarm bells, but remember it's not so much the ticker, the company, the sector. All of that. What we're trying to find is that you know that classic fear and greed.

You know the warren buffett quote: one of the great market quotes of all time. You know be greedy when others are fearful and be fearful when others are greedy and the point i'm trying to make is what we're trading is, is emotion, animal spirits as they say, and you can recognize those trends, especially the biggest moves, whether it be to the Upside an example of hook or to the downside i mean nothing is better in a crazy and this may sound very counter-intuitive, but i choose my words carefully. Perhaps you should have done the same persian. I need to grow out my leonidas beard from 300, but anyway um.

You know some of the best trading opportunities are these stocks that break support in raging bull markets and you short them and they get obliterated and that's always very confusing to people that they're. Like wait, some of the best shorting opportunities are in bull markets, yeah, because when the air comes out, when the emotion shifts huge moose of the downside, so anyway, it's much like hook today, opposite markets getting destroyed, taking out the lows, everyone thinks it's world war, three And here we are pushing highs. So that being said, let's talk about what is hook and why? Okay, so let's go back to day one and and bear with me but day, one was technically tuesday night, but it was tuesday in after hours past the 4 p.m. Close so i'm basically combining tuesday after hours with the market day on wednesday, okay, because because of the fact that remember in after hours, most traders leave at 4 pm, most traders aren't trading in after hours.

You know from 4 p.m, to 8 p.m. Eastern you know like otcs, don't even i mean if you're an otc trader, you always walk at 4 p.m, because otc's don't even trade in after hours. So i'm going to kind of combine that day of tuesday evening and wednesday, so news drops late, tuesday um. If i remember right, i'm gon na double check this, because i don't, i believe this was an h i v or yeah, and a minute yep hiv.

All right. I can actually, unlike the tick tock world, i can actually remember things from three days ago. Anyway, they had an amended agreement, hiv related with gilead, so we always love to see that we always love to see low price penny stocks, particularly biotechs, that are tied up with huge partners. Okay, because we know that these billion dollar companies number one, they pay their bills and number two.

We know they know how to do due diligence. Okay, it's one thing: if you see some yahoo finance article bragging about uh, a a biotech penny stock that was probably written by an intern somewhere, okay, when gilead is putting a billion dollar, you know huge one of the biggest biotechs in the world is investing in A small penny stock biotech, that's always something to be keep be aware of. Plus it's hiv, it's scary, you'll hear me say that all the time, the again the scarier, the the the treat or the disease or or or the cancer etc, the more likely the stock is to move. That goes back to that fear thing.

You know fearful stuff drives stocks, especially in biotech land, so the news drops uh late, tuesday, night and after hours. This is also a low float stock. Lower float, 22 million float still on the lower end of things. You know, typically, when we say low low float.

It's less than 10 million, but understand 20 million is still a pretty low float stock. I mean you, look at you, know, apples and tesla's and google's they have. You know hundreds of millions of shares, sometimes microsoft. Billions of shares on the float.

Okay, when you're talking billion versus 22, it's considerably lower, so low float, good news, great news again hiv tied with a partner and we get that big gap up so now, i'm looking at that five-day chart and actually i'm gon na break this down on the whiteboard, Because i think that's the best way to denote all of this so here's day, one big gainer holds all of its gains and then even spiked, beautiful uh v wap hold on day one. By the way, this thing chopped again. Remember i'm calling this day one um. So chopped around, but then into that 2pm window, which we love big volume, spike big move.

If you were quick nice day, trade, okay. So, even if you were 18 hours late, you still had a solid v-lap hold because of the float because of the volume because of the news, then, when i worked but we're talking about the day three surge. So this is what we love to see on day. Two is nothing okay, and this might be confusing, but remember and you've seen me talk about this in other videos, 99 of biotechs do this.

You know one one day: spikes they crater the next day and it's over and then they never come back or they come back two years three years later. Okay, so what we like to see with this day, three search pattern is the opposite of that that sideways action, because what that is doing is that's baiting in the short sellers, it's baiting in the short sellers that think this is gon na happen. They think number one i think, they're foolish, because of again the news being i mean i know i've said it four times, but it is very uncommon for huge billion dollar biotechs to invest in these. It doesn't happen every day, i'm not saying it never happens, but it's rare, but anyway they're getting baited in because they think over here is gon na happen.

Now, there's no trade on day two, that's not what we're looking for, but that's our confirmation. The stock should have been on your radar because it was one of the biggest percent gainers on tuesday, tuesday wednesday. It held its gains. It was a v app hold so now on day.

Two, you just got it on your watch list and you maybe you got alerts set but you're keeping an eye on it and then you're waiting comes the end of the day. Hey, maybe you were working thursday. You know a lot of. You are part-time traders.

You come in thursday night and you're, like whoa, hey check this out even a little bit of a squeezy action in after hours. Okay, this is that that dark gray is that, after hours level, you can see it even trends up a little bit. Let me get rid of some of these, so even a little bit of a perk, so you know that shorts got stuck. They never had a place to cover, they never had a place to break, they couldn't get outbreak even because it ground up into the clothes and then perked up in after hours.

So then, what we get on day three is that break of the highs so right there in the 220s 225. Basically, you get confirmation again, today's friday perfect setup for a day, three surge, because we know it's full of shorts. It breaks that level, which was the panic point for shorts, because they're always if they're, smart, they're gon na be risking against those highs, because once you break those highs, everybody's happy, everybody's greedy, everybody's buying, including shorts, remember shorts, have to buy to exit their positions. So when this thing breaks that triple top on day, three on good volume, it's off to the races and you can see - as of let me jump back to the live chart from the whiteboard here, we are still pressing the highs.

Now, let's i'll go back to the whiteboard to talk about risk? Okay, i always say it's not a trade. Unless you have a stop now, you've got a good stop right here in basically those low twos, which is support. Okay, so if it pulls all the way back to support the ideas failed, you know most likely the stock's just gon na chop around and probably on monday. Well, actually, it's three day weekend on tuesday, if it pulls back to support and can't you know, make that move off of that good chance.

It gaps down tomorrow and it's kind of or the following day and goes nowhere. So the trade is busted. But in that situation, you're, basically risking 10 15 cents a share and as of right now, you're up depending on your entry, you're up 30 cents, a share, there's two to one risk to reward and it's also 12 30 p.m. We got three and a half hours.

Yeah or no yeah, three three and a half three and a half hours from 12 30. You know until the market closed, so this thing might not be done so keep an eye on these stocks. Again, the components are a big gainer that on day, one that that has substantial news, that's what we want and it holds all of its gains. Okay, again notice hook closed at the high day.

One then we want to watch for that short baiting action. Remember what they want. They think it's gon na break down when it doesn't break down they're stuck and they have no place to exit well, if they're smart, they would just cover for break even but back to the greed idea. Nobody wants to cover for break.

Even then, you look for the break of the highs on day. Three you've got a solid risk to base off of and listen if you lose on that trade on these day three surges, if you lose today, there's a good chance, there's another one tomorrow, there's another one: the next day, small losses, big wins just like hook. That's how you get consistently profitable over time. So that being said, where did hook, let me help drop me a comment.

Number one. Did you like the video? Are you? Were you familiar with the day three serge and number two uh? How high did hook go on february 18th 2022.? Here it is right at the high of the day market getting destroyed confirmation of that day. Three move so drop me a comment or or just let me know have you been have you did you already know about the day three surge and also, most importantly, check out the stocks to trade, advisory click, the link below every single day, 8. 30.

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