0:02 hey guys Brian from barabol traders here
0:05 it is May 12th on Saturday little late
0:07 on the post you can may try to get those
0:11 off on the same market day but today I'm
0:13 gonna talk a little bit about what I do
0:15 or what I go through when I'm looking
0:20 for my watch list this is in response to
0:22 questions from a number of people about
0:25 the process I follow so I'm just gonna
0:27 spend a little time talking about that
0:29 before I go over the one trade I did and
0:31 Paul Jesus maybe a little bit longer
0:35 than normal but yeah basically my pre
0:38 market scan first off I like just say I
0:41 do favor short positions going short on
0:45 an opening range break down versus long
0:47 so I just tend to find them a little
0:50 more predictable and first thing I'll do
0:52 in the morning even before I get on the
0:56 the chatroom I'll do a pre market scan
0:58 or pre market do some pre market
1:00 research which you know I read get a few
1:03 emails from Ben Zynga and CNBC giving a
1:06 little bit of a pre market overview and
1:07 I just read up on those a little you
1:09 know it takes me a couple minutes and I
1:11 just read those and just to get a sense
1:13 of what's going on in the market what's
1:14 in play
1:18 why is it in play I don't know why I
1:20 know Andrew doesn't like to do that but
1:22 it's just my personal preference I just
1:26 like to know what's going on and I go
1:27 through the same process
1:28 pretty much that Andrew does we look at
1:31 the trade ideas scanner and we look at
1:32 our gap errs watch list
1:34 so I'm looking and focusing more on the
1:37 ones that are gapping down as opposed to
1:41 the ones that are gapping up and the
1:43 other place I look for opportunities to
1:45 trade is is on my personal watch list
1:48 and I mentioned this before I do have a
1:51 sort of a personal watch list that I
1:55 keep and I just base it on stocks that
1:57 are currently in favor or currently
2:01 being played and that's that's you know
2:04 stocks drop off it and come on it just
2:06 based on what's going on I mean we were
2:08 playing mu for a while there and it's
2:10 still on my watch list you know that
2:12 kind of stuff so you know we've got
2:13 about a dozen stocks on there
2:15 I like to go through as well and just
2:18 see what they're doing but typically
2:19 what I do is I look for gap downs on the
2:23 TI gaffers watchlist five to ten cent
2:26 percent is like ideal you know fifty
2:28 even if it's fifteen or twenty I mean
2:30 they all seem to if they're gapping down
2:33 that much they all seem to fail more at
2:35 some point and you know Symantec was a
2:40 one that on Friday really you know it
2:42 started out low really extended and it
2:46 went lower so yeah so anyway but ideally
2:48 I'd like you know I like to focus on the
2:51 five to ten percent ones to start and
2:55 drill down and look at those so I the
2:56 one thing I gotta watch out for and I'm
2:59 just going to mention this is you know
3:01 watch out for stocks that are that have
3:03 a high level of short interest because
3:04 that can really affect how a stocks
3:07 going to trade TTD I think we had a
3:09 really high level of short interest if
3:11 I'm not mistaken there think it was like
3:14 over thirty percent and it was gapping
3:16 up and that problem probably was one of
3:18 the catalysts that drove that thing
3:20 higher right at the open and if you've
3:22 got a stock that's gapping down with a
3:25 large short interest you know you have
3:26 to wonder if you know and then run it to
3:28 the shorts you know we're gonna jump in
3:30 and start covering on a big gap down so
3:33 you know there could be a pop there so I
3:36 tend to find the ones with a high short
3:38 interest a little bit more volatile
3:41 especially at the open but it could be
3:45 predictable as well so anyway I just the
3:47 other thing I do just prior to the pre
3:49 market or prior to the market opened
3:51 especially in the pre-market last five
3:53 minutes I do tend to watch the price
3:55 action to see you know how volatile it's
3:58 gonna be and that's that kind of if it
4:00 if it starts to get the real volatile
4:02 before the before the market opens and
4:04 I'm gonna sit back and wait a little bit
4:07 and see see what happens as opposed to
4:09 maybe seeing a stock start to drop right
4:13 away and kind of jumping in so kind of
4:15 watch that last couple minutes before
4:18 the before the market opens so and of
4:20 course we go through the same thing we
4:22 go through find levels you know pre
4:24 market lows pre market highs look back
4:27 in time see where there's previous areas
4:30 resistance and you know get a sense of
4:32 where we're gonna enter and where we're
4:34 gonna exit and and that kind of stuff
4:37 so that's that's basically what I did or
4:40 what I do every morning and there really
4:41 wasn't on Friday there really wasn't
4:45 that much to trade off of on the at
4:46 least from what I looked at there wasn't
4:48 really that much to trade off of on the
4:51 ATI Gabor's watchlist so that's when I
4:53 went to my personal watchlist and I came
4:56 up with IQ and I MMR I think was the
4:58 other one and the other thing I do I'll
5:00 mention is that you probably noticed
5:03 that I don't you know Andrews watchlist
5:07 can be six five six seven stalks I tend
5:11 to focus on two maybe three at the most
5:13 and I just find that you know it's
5:15 easier to manage a couple as opposed to
5:18 five or six and especially if you're a
5:20 new trader you know you can really get
5:22 overwhelmed by trying to watch too many
5:23 stocks at once
5:25 you're better off trying to focus your
5:28 attention on several stocks that you
5:30 think have the best opportunity and they
5:32 may not work out you know you may miss
5:37 out but yeah that's I think that's a
5:38 better strategy it's certainly it's a
5:42 better strategy for me and Andrew seems
5:44 to do fine focusing on five or six again
5:46 this is all about you developing your
5:50 own personal style so let's look at IQ
5:58 here's the IQ day one minute let's look
6:01 at the daily first you can see here it's
6:03 in the last couple days this is a daily
6:06 chart of IQ you know it had a nice pop
6:09 here I had another nice day you know but
6:13 it's a long tail and right here and then
6:16 it was it gapped up and I kind of
6:18 thought you know it's three days gap and
6:19 you know that's probably getting
6:22 extended and that's what made me think
6:24 okay maybe there's a it's kind of weird
6:25 but it's gapping up but maybe there's a
6:28 short opportunity here so that's kind of
6:31 why I got interested in this one and
6:34 let's take a look at the daily so you
6:37 can see here the pre-market actions kind
6:40 of steady this is your pre market low
6:46 here and so the open thing jumped up I
6:49 wasn't going to take that trade I just
6:52 wanted to see how you know how it all
6:55 panned out and it you know it it kind of
6:57 stalled out here so I just kept focusing
6:59 on it because that was the you know I
7:01 had that in I MMR I think was the other
7:03 one that I was watching so I was looking
7:05 for a breakdown of sort of this level
7:07 here and when I saw it starting to pull
7:11 back here you know I kind of felt like
7:13 it was either gonna bounce from here or
7:15 it was gonna you know punch through
7:16 there and go lower and so when it
7:19 started hitting down here I got it short
7:24 and and you know I a little bear flag or
7:28 here didn't really make much of a much
7:30 of a flag at all and just continued
7:32 lower so I think I've covered it right
7:35 down in this area here so that was that
7:36 was coming to the rationale but you know
7:38 this one I had to sort of sit back and
7:41 wait for it to resolve you know took six
7:43 or seven minutes before you know for I
7:46 did an entry on this thing so anyway
7:48 that was kind of the rationale behind
7:50 that trade like I said I didn't find
7:54 much else I could have traded TTD you
7:57 know for a opening range breakup and I
7:58 know some of the other people in the
8:00 room I think Brendan maybe traded it and
8:02 so that was been that was a nice
8:04 opportunity that I did miss just because
8:06 I guess I had a bit of a always have a
8:09 bit of a short bias for the opening
8:13 range breakdown so anyway that's it so
8:15 hope that was gave a little bit of
8:18 insight into what I do in the morning in
8:20 terms of building my own watchlist and
8:23 you know you can use whatever you
8:28 think's valuable in that and will
8:32 develop your own style so guys and gals
8:36 have a great rest of the weekend and we
8:39 shall see you in the chat room on Monday
8:42 morning have a good weekend everyone bye
