00:00 We've seen a lot of different catalysts hit the market over the years, but now with these
00:07 downgrades of the US debt and then the banking debt, going back into your trading history
00:17 and stuff, there's always seems to be these unknown catalysts.
00:22 Looking at the bank stocks with the rally that they had, are you just staying there
00:28 or let the dust settle?
00:33 I'm absolutely back to being a day trader.
00:35 So again, a lot of the things that mattered to me three months ago do not matter to me
00:39 whatsoever right now.
00:41 And that's what I like about, again, being able to pivot.
00:43 That's why I've survived for 30 years.
00:45 First sign of danger, I'm out.
00:48 And I also sell the winners and the losers on the same day.
00:51 I don't care if I'm taking small losses because most people just sell the winners first because
00:56 that's an easy sell and then all this stuff is the dreck and the dreck usually gets worse.
01:02 So then you're stuck with your losers and next thing you know, all the profit that you
01:06 made that you're already locked into starts to dwindle because the ones you're left with
01:10 are getting worse and worse and worse.
01:11 So I just hit the monster key and I get rid of all of them at the same time.
01:15 The monster key.
01:16 Sell all.
01:17 The big red button.
01:19 I got the rig, which again, look what's happening right now.
01:23 We were on the nice collision course with 10.
01:25 I held through the number.
01:27 It was all right.
01:28 And now the stock's back to eight.
01:30 I still got a few ones, GDRX.
01:32 I like some of these stocks that have been hammered so much that again, where are they
01:37 going to go?
01:38 But you're up 20, 30% on a position going into the report.
01:41 Why not ring the register?
01:44 Why not indeed.
01:45 And one of the things that I definitely agree with, Kenny, as you just mentioned it, when
01:49 rotation starts going against you, you got to be quicker than most because if not, quickly
01:54 not only give up those gains that you had, but those losers can really quickly start
02:00 dragging you down.
02:01 And then you take that equity wave hit.
02:03 And I think that's what major, major day traders run into in their problems, in their equity
02:10 waves, right?
02:11 They start climbing that equity wave, but then they take major down draws that just
02:15 destroy them versus just continuing to climb that and be willing to be patient in a time
02:20 like this, if you can't short, just waiting for the longs to set up again.
02:25 I know that's one thing that you teach often, of course, and you teach a lot about on VWAP.
02:30 Are you looking for more of kind of mean reversions coming on the downside also?
02:34 Because I know that you like looking at stocks that start fading away from the VWAP coming
02:38 back to it.
02:39 Is that the type of play you'd be looking at in this environment?
02:42 Well, the gap downs, I'm looking for reversions to the upside, but the overall market, I'm
02:46 still, again, the cues are hanging in there.
02:49 This is just a standard pullback.
02:51 You got almost a triple top at 387 and change.
02:55 You came in the 15 points.
02:57 You just held support again in the pre-market, that 371 area.
03:01 If we break 371 with some volume and some gusto, we could drop another 20 points.
03:07 That's the trade that I'm looking for.
03:09 So if I get the signs and volatility, you've got UVXYs finally not as dead as it's been.
03:15 VIX finally sprung to life.
03:17 You've got reasons to sell now.
03:19 I still need to be convinced.
03:20 So you've got to break down onto that major support on the cues.
03:24 That's going to be where I look to short.
03:25 I don't like the short individual stocks because if I do short these cues, I'm probably going
03:29 to hang in there for three days.
03:31 Usually these sell-offs are good for three days and then they make the turn.
03:35 So I'm stalking the cues for a big position short.
03:40 But other than that, I'm just sticking, again, with these gap down stocks looking to play
03:43 the day.
03:44 Like I said, it's not that I like beyond meat long term, but when you're down 17%,
03:49 18%, usually you get washed out over 20%.
03:53 And then you get a little turn.
03:54 And for us little day traders, we're buying 2,000 shares of a $12 stock.
03:58 It pops 30 cents.
03:59 Have a nice day.
04:00 That's what we do.
04:01 And that's what I've been doing forever.
04:03 So right back to that, right back to that.
04:06 And we've got a huge list of stocks that are reported today.
04:10 So there's going to be a lot of action.
04:11 I don't think we're going to have a boring August because August used to be great.
04:14 And remember, Dennis, we used to have great August and August became just the most boring,
04:19 awful month.
04:21 I think there's too much at stake right now for August to be boring.
04:25 I think it's going to be all over the place.
04:27 I keep thinking it's going to slow down.
04:28 But now as the market starts to crater here, now you get investors nervous.
04:32 It's like, "Oh, I better do a little bit of maybe portfolio adjusting here."
04:36 So institutional money managers are moving money around here so far.
04:40 So, so far, no crickets in August.
04:43 That's where I'm at right now.
04:44 And most of these stocks, they're just going to fade and you're going to find some support.
04:48 And some, the ones that don't find support, like my NNOX, what a dog.
04:53 Sorry about that one, guys.
04:54 This one has not caught a bid.
04:56 And again, some of these you go down on the ship with.
04:59 Again, just gave back six months of hard work on this one.
05:03 We have some long-term leaps on it.
05:06 Garbage.
05:07 But again, and this was a very easy story to get involved in.
05:10 Johnson & Johnson bought a stake in the company.
05:12 We were like, "All right, here we go.
05:14 They got our back."
05:15 The next thing you know, it's down 50%.
05:17 So it's okay to be wrong.
05:20 You just don't stay wrong.
05:21 And if these stocks start to roll over, just hit that monster key.
05:24 It's a great thing.
05:25 It's ripping the bandaid off.
05:27 Just get rid of them all at the same time.
05:29 Get back the cash, refresh.
05:31 And then like you said, when the dust settles, there's always opportunity.
