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hey everyone meet kevin here in this

video we're going to talk about the

small cap rotation how all of a sudden

everything's going green and whoa whoa

whoa it seems like oh my gosh the

rotation's here

hold on a second i'm going to show you a

strategy that i think is very very

important to make sure we're not playing

mr dead cat bounce over here and to make

sure that we can potentially take

advantage of as many attendees on the

upside while limiting our risk to the

downside on some plays we're going to

talk about that and this madness going

on in the stock market this delayed

santa claus rally coming today with most

stocks green today i'm going to talk

about that in just a moment right after

i mentioned this video is brought to you

by moomoo linked down below in the

description for more information but

more on them later okay folks take a

look at this right here

oh my goodness i want to go shopping and

as you know i always send every single

buy sell alert like i did this morning

just like i did yesterday and the day

before to everyone in the stocks and

psychology of money group linked down

below take advantage of the new year's

coupon code by the way get that tax

deduction right before the end of the

year we're making this a 48-hour sale it

is going to expire at the end of the day

on the first but you're better off

taking advantage of that today or

tomorrow so that way you could write it

off which means you're getting 41

percent off plus a tax write-off you

know that's like getting a lot of

percentage off so check that out down

below but folks look at some of this

rotation here we've got shift

technologies up nine percent uh neo up

eight point four six percent as sofi is

up eight percent arcimoto's up seven

percent the high short interest

companies are rotating up now yesterday

in our closing live stream we noticed

something really interesting and what i

noticed in our closing live stream

yesterday was actually something that

helped me diamond hand and people always

wondering like kevin you know why why

watch the market all the time why you

always got your eyes on the market why

are you always trying to figure out

exactly what everything is and that's

going on well it's because

the trend i noticed yesterday made me

not want to sell my small caps why

because i noticed that shorts on most of

the small cap companies were either flat

in the last few days or rotating down

the only place the shorts were actually

increasing their bets was against kathy

wood but that's a separate issue i think

that's more just because people are mad

at kathy that she has the limelight even

though she's having a not that great

year and it's easy for everybody to beat

up on her which i really admire kathy so

that's aside from the point though

what's more important is that shorts

were flat or rotating down which in my

opinion is an indication that

the market is starting to indicate maybe

we're starting to approach some kind of

bottom

for smaller cap stocks or stocks that

have substantially oversold and been

highly shorted remember the the four

stocks that i mentioned particularly

that could move under very high short

interest in excess of 28 percent are

shift technology lemonade a corsair and

tattooed chef like them or not they're

likely to move because they've got a

substantial amount of short interest and

there's going to be a lot of short

covering once the market is convinced

that the pain of december is over

because december has been a nasty bloody

month look at sofi technologies we've

been bouncing around that 1470 support

line literally all month

and

since you might not believe me there you

go there's your 1470 support line we

have been bouncing around this

since the 3rd of december it's been

painful

now

what is what we want to pay attention to

to strategize in this market well what

i'm going to do is i'm going to pull up

shift technology and i'm going to show

you something that i think is really

really important to make sure that you

maximize

your profit but also potentially

minimize your risk on these so let's

talk strategy for this

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let's talk strategy now that we talked

moomoo let's talk strategy so take a

look at this folks shift technology it's

up ten percent but look what i did here

folks i drew a couple very important

lines the first line that i drew is a

bottom i just drew this i threw the

bottom at roughly three dollars on shift

but i also threw an upper bound and the

upper bound is really the intraday

wick highs

of the stock

over the past

rally days that it's had because we've

had these exciting 10 percent movements

before but anytime we've had these

movements before they've been dead cat

bounces we've come right back down we've

had little fake outs of green days

little fake out rally over here it's

been painful now i don't own any shift

technologies right now but here's my

strategy for this because i do think

that shift is substantially oversold

just like many of the other small caps

my strategy right now on a day where

it's up uh 9.7 or what are we at 9.74

right now is to wait and i'm going to

show you exactly what i'm waiting for

what i'm waiting for

is a breakout or hitting this line and

then breaking past this upper line here

because this upper line right here is

drawn at 3.64

now yeah that does mean you potentially

gave up this 20 difference here but that

also implies that you were perfect and

able to get it at the bottom of three

dollars and four cents which if you're

buying at any point thinking you were

getting the bottom price the odds are

you were wrong you were not paying the

bottom price you were either buying it

when it turned green again in which case

you're not looking at it 20 that you

missed out on right that's all fomo crap

anyway you can't think like that or you

were getting a worse price so

my strategy for for not just shift but

many of the companies is wait for a

breakout to where we finally start

breaking out above

the prior intraday rallies that we've

had now an easy example of this in my

opinion is going over to visa look at

visa stock and look at that breakout

they had and this is the kind of

confirmation you want to look for

so you see the bottom right here and how

we've had these little prior mini

rallies here and this is in november we

really officially broke out around here

december 6th even though we had some

other soft days as soon as we broke this

down trend and actually closed above

right here on this candlestick as soon

as we closed above

this high right here that intraday

candle wick high we started really

actually trending up again in fact

that's exactly where we had our ema

20-day reversal or or inflection point

back to the upside and so this is more

of the swing that i want to get though i

think on a lot of these small caps

because this is visa the the reversal is

going to be a lot more substantial than

this and potentially a lot steeper if we

do go into a rally mode so my strategy

is going to be the following i'm looking

at a break of shift technology above

about 3.67

if we break above 3.67 so let's say we

get a nice candlestick above 367. it

looks like we're in rally mode we don't

have a lot of negative catalysts other

than you know random miscellaneous fear

for things like uh oh inflation reports

coming out or the fed talking at the end

of the month whatever at this point it's

like really are things going to be that

different from from what we had last

month probably not we're not expecting

rates to get bumped until march anyway

because we're still in the midst of the

taper but anyway

we get a bump and a break over here what

i'll probably do is at the same time as

i set my buy i'll set a stop loss so

basically that means when you make your

buy

you can also set yourself uh well we

could go in here we could set a cell we

could set us a trailing stop limit so

after you buy the shares you could set a

trailing stop limit let's say you bought

100 shares and you bought them at

3.67 cents well let's set a trailing

stop for 25 cents and then now if we go

from three dollars and 65 cents where

let's say we buy it or just to make math

easy let's say we buy it at 375 right

here because we got a little breakout

you buy it at 375. you set a quarter

trailing stop now if for whatever reason

it drops back down to 350 it

automatically triggers a market order

and you sell a new gtfo make that

obviously a good to cancel instead of a

day and you know only a day in force so

uh unfortunately with trailing stops

some brokerages actually require you

continue to reset these so there's a

little bit of maintenance that can be

involved in this which is a little bit

of a pain

now the reason i'm going to use the

trailing stop at first is because i

believe if we break out what we're going

to have is probably this momentum for a

few days where we go green green green

probably a few first few days i'll go

trailing stop until let's say we get to

like four dollars and fifty cents or

five dollars at that point i probably

won't have any trailing stops continue

because i'll have plenty of of profit in

there i just want to minimize my loss in

the event that we go back down to three

dollars so for example i enter at 375 i

set its 25 cent trailing stop i'm out of

there at 350 if we end up going back

down to three dollars that floor that we

have drawn here

or worse right i'm trailing stopping out

of the uh the small caps basically but

if we get a breakout i also don't want

to break out to like four dollars and

fifty cents for five dollars and then

just have a brief moment where it goes

down 25 cents or inch hour or whatever

it goes under 25 it falls 25 cents with

a trailing and then gets stopped out at

450 because i want to ride it back to

you know 650 right so uh probably not

going to use a trailing stop long

probably just won't have any limits i

mean i could have a limit but usually i

don't like keeping limits or open

because they're kind of harder to track

a recommendation i have is anytime you

have shorter term trades that you need

to like get in and out of especially

shorter term call options keep a little

sticky note on your computer screen or

something like that keep track of your

short term trades and things that you're

trying to get out of uh or or that well

you know you don't want to continue to

lose money on if you're diamond handing

it obviously doesn't matter so much so

anyway that's just an example with shift

but i'm going to do the same thing with

sofi except what i'm looking for at sofi

is probably a break above closer to like

17. that's going to give me a little bit

more confidence that we got past and we

actually break through with a real rally

on something like sofi

on lemonade

lemonade's been an interesting one

because we don't actually have a solid

floor here in fact the lowest point we

had was 3920 we really broke that 40

floor which is a much more solid floor

so maybe we could call it a forty dollar

floor and if we do call it a forty

dollar floor would drop that right over

here uh i would say we're probably

looking at wanting to break out to at

least

fifty dollars before considering a

re-entry over here i know we're at 40 uh

42 right now so there's there's quite a

bit of profit to be had between there

and 50 about another 20

off of already being up 7 today so i

might consider dropping that down uh to

like

47.50 but the only way i would go into

lemonade is if at the same time i was

breaking on shift technologies which you

can see now is i mean we might be

heading there today it's up 10.2 percent

so anyway

uh i would i would use multiple of these

as a test so if i get so phi over 17 i

get shift technology over 375 i get

lemonade over uh 47 and i start breaking

some of these pain thresholds then that

could be an indicator to me that okay uh

it's time to go in and then set those

trailing stops and simply trade this i'd

be willing to go and margin on this

only for a trade uh and that's because i

would set a trailing stop and i would be

getting out of it no matter what if we

dropped uh and it looked like we were

heading back because you have to be

careful you could have a dead cat bounce

and that's why look we've got this 26

dollar

floor on draftkings over here where do i

where do i think we're going to get that

official breakout probably not that

confirmation until we get to 34. see

that same kind of channel but again

we're at 38 right now so i wouldn't i

don't like i'm sorry we're at 28 right

now uh 34 going from 28 to 34 that's 20

right so i don't necessarily want to say

you want to wait all the way until this

potentially on draftkings just for

example you might draw that to like 31

but again i would only make that move if

i thought all of the other ones like

shift and lemonade and the other smalls

were also breaking let's do one more

let's do a pinterest for giggles over

here 34 buck approximate floor i

probably don't want to touch pins until

somewhere around ideally like 41. now

this one's closer see 41 divided by

where we are now i'm not so worried

about that 10 there because i don't need

to pick up that 10 because it's entirely

possible that tomorrow we're just red

again and we go back down to the floors

so i don't want to get too excited on a

green day to hop in here until i have

that confirmation that

you know okay the pain is over we're

going into that january effect rally so

i want to wait if i get breaks on all of

these

think lemonade shift technologies

pinterest draftkings maybe even

corsair that's another one or tattooed

chef right although corsair is moving a

lot slower here uh we do have an upper

line here at corsair about 2270 tattooed

chef we get breaks on all of these

a tattoo chef probably has to break 17

right if we get breaks on all of these i

think it could be a sign that we could

see a substantial rally in uh in small

caps and i don't think the rally would

be even remotely close to over

because if we get that kind of movement

and all of a sudden people look at the

charts and then they see a lot of this

that inflection point you know how this

market works folks as soon as people see

stuff that's green and you see that

inflection point uh then people start

piling in and then you can get that

exponential growth and you can get some

some doubles right that's what you're

looking for like a shift technology come

on like i buy that at 375. let's go

where's my double i think we can get to

750 get a double and then get the heck

out of there you know people might front

run it at right around seven but

i'm down to play a trade on these uh but

again i don't want to get caught up in

the dead cat bounce and that's why i

want to wait for confirmation on

multiple of these smaller caps before i

make a move if i make a move i'll be

going into margin to make that move but

i'm going to do it with the trailing

stop so that way i get the heck out of

there now 25 cents on 375 just so you

have a percentage-wise

375 that is about 6.6 percent so some

people like to set 10 trailing stops

i'll probably be there at like six or

seven percent uh for trailing stuff just

so you could apply that to different

stocks if you want to obviously not

financial advice if you want all the

alerts for when if when if i make any of

these moves uh do consider getting that

tax write-off use the link down below

use that coupon code new years it

expires on january 1st at the end of the

day we're just trying to motivate folks

to take advantage of potentially an end

of the year tax write-off consider

checking out those programs if you look

at the price of the programs you take

off the coupon code and you take off a

tax deduction

it ain't bad now check with your cpa to

make sure that you can write this off

but do check out the programs keep in

mind the wealth course will be going up

the most substantially uh in january and

that's because right now it is in

pre-sale and there's no content in the

wealth course that's the path to wealth

course that's different from stocks in

psychology money but of course you could

bundle these okay folks so uh these are

some strategies i would say the same is

going to be true if we look at something

like a palantir except for pound here

i'm probably looking for a break at

right around the 1950 or 20 dollar level

but palutear i think has a pretty well

defined floor right at about 18

maybe 1790 for so for those of you

wondering

about a palantir floor i'm going to go

with about 1790 here as a potential

floor and then i'm going to put a little

lid

uh

i probably want to be right around 20

bucks i think that's a psychological

threshold that's not really that good in

terms of lining up with the wicks over

here psychologically

the 20 dollars makes a lot of sense it

hits a lot of bottoms over here so i'm

gonna go with 20 and i'm going to be

looking for those breaks and that that

could be a great indication a good tell

for uh some movements on recovery so i'm

happy we've got green but you always

want to be prepared folks this literally

has been the market of convictionless

rallies where we run and then we fall

keep in mind folks tomorrow is also the

last day of the year it is a full

trading day which means we could

we could very well see some leftover

loss taking

tomorrow and we see some leftover laws

taking tomorrow we could see some red

after the screen so i don't want to get

overly excited yet on some of these

smaller cap companies another smaller

cap company just for reference for those

of you who

make it to the end of these videos

little bonus

do watch erj folks i think erj is a much

better deal than the eve spack okay

compare market caps you'll see why i

might make a separate video on them i

might not no guarantees okay folks thank

you so much for watching this video good

luck out there i love you and we'll see

you soon bye