How are all my traders doin’? It’s Bryce here…
Today we’re calling out the elephant in the room: The market’s slower than a sunbather in Margaritaville right now.
I know a lot of folks out there have been itchin’ for a hot win…
… stacking wins has been a lot slower than it was in 2020 and 2021.
So, you’re probably thinking…
‘Tuohey, why haven’t you been trading much lately? What are you waiting around for? Tell us what button to push to make it rain, already!’
It’s OK, I can take it. After all, I’m used to Sykes demanding burpees from me and giving me the evil eye…
So what am I waiting for?! I’ll tell ya…
The RIGHT setup.
And since we haven’t seen one in a while, I’ve got just the right thing for you from my highlight reel: The perfect example of how I like to make money in this market. Your only job now is to watch this and get ready…
The Ultimate Multi-Day Runner
I still think about Newegg Commerce Inc (NASDAQ: NEGG)…
This consumer electronics retailer turned out to be one of my best plays ever. It came in early July of 2021.
Want to know how I prepared for my biggest trade of all time on $NEGG?
I made this video last night for my @SmallCapRockets folks who got access beforehand, but I want everyone to see what I was looking at. YouTube video is now public, study it up 😜https://t.co/kX0WPXKbum
— Bryce Tuohey (@TraderBryce) July 9, 2021
Why did it run?
It had a hot catalyst. Four models of NVIDIA’s (NASDAQ: NVDA) hard-to-find GeForce RTX graphics cards were available on Newegg Shuffle, the product lottery for popular products.
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And that sent the stock running for days…
NEGG 6 month chart — courtesy of StocksToTrade
Shorts kept hopin’ and prayin’ for the first red day to come and jumped in. But the red days had lower volume compared to breakout days. And the prices on red days still held above breakout days’ lows.
Making shorts buy-to-cover is every long trader’s dream.
Shorts got soaked. And the stock exploded. Here’s an intraday chart of its best day…
NEGG intraday chart — courtesy of StocksToTrade
Longs could play this big mover in pre-market and regular hours. Breakouts, dip buys, a dip and rip at the open… This stock had it all.
And I kept nibbling at this bad boy every time it made a moon jump. All I needed was a piece here and another piece there. I love when you can play the same ticker consistently with great results.
NEGG was the gift that kept on giving. Even on the failed third-day surge, longs could get their piece of the move and then move on.
All it takes is a unique catalyst and a few cynical shorts piling in to keep the price action in play. When you see a move like this, you don’t forget it.
Would you be able to recognize a multi-day runner in the making?
Conclusion
Look, we all know it’s slow. And that’s frustrating. It’s a bit of a snoozefest to watch your hopes for a good play break down …or, worse yet, move sideways indefinitely.
But the tide will turn. And it won’t necessarily turn all at once. Good plays start creeping back in slowly — one big runner at a time.
So you gotta be ready for them when they appear.
Once you experience them for yourself, you’ll understand that the right play is worth the wait!