Senior Trader, Ryan Hasson, shows video of two of his Tape Reading trades in hot stocks KODK and KNDI, with step-by-step analysis. Let’s get to work on sharing these important trading lessons so you can grow your trading account.
View Video Transcripteveryone so in this video i’m going to
be showing you
two traits two scalps whereby i’ll be
scalping momentum looking to be very
reactive on the tape
[Music]
first stock will be kodak this will come
a day after the stock topped out at 60
and what we see off the open is some
resistance being met at around 44 the
day before we had a lower high around 45
and in the pre-market on the day we had
some resistance
around 44 80s up to 45. so right off the
open we’re going to be looking to see if
we can see resistance
being met near those levels and within
that area
that will be the first sign and check
that we’re looking for
as confirmation and then we’re going to
look for price to confirm that
looking for a big dip in the stuff and
that’s one scenario that we’ve
gone over to react very quickly so if
that happens then i will do this
the second trade we’ll be looking at is
in kndi this is a stock
that had a large push the day before and
how to squeeze after hours in the
pre-market on the day
and we’re going to look to see whether
it’s fomo and it’s just
people chasing and paying up the offer
because they think this could be the
next coda
or if the sellers are going to win this
battle and if we’re going to get a stuff
and reality is going to set in and in
doing so people
are left holding the bag at higher
prices and they’re going to look to sell
and hit the burn and get out
and this may cause some panic on the
downside
that is one if then for knd another one
could be well we could trap short to
reclaim v
while base above a certain price and the
one and two day view up and push
higher and perhaps have a push to 25 or
30. so we prepare
various if-then statements and then if
one of them play out we look to be
reactive and so these are the two stocks
we’ll be watching
and let’s see what happens so in this
tape recording
we’re going to be going over some traits
that i took and some scalps that i took
in kodak
and in kndi we’re going to see how i
reacted to the tape what i saw in order
for me to get
short and in order for me to cover my
position and
um it’s two fantastic setups very
similar setups
and so without further ado let’s jump
straight into it
at the bottom we have kodak
currently coming into an area of
resistance this is the day after it
topped out in
60s and let’s watch the tape
so we’re seeing kodak coming into 44
having some resistance
and it just failed at 44 and we could
not hold above we got a stuff pattern
tried to break over that area so now i’m
looking too short so i immediately short
and my stock would be 44 so i’m short
kodak we’re now 42 and i’m looking to
add
as we have confirmation of this
engulfing move offers have stepped down
bids or getting hit now we’re in 4150s
excuse these
stuck bid 4116’s bid 41 just broke below
41.
and now we’re coming into these
pre-market levels so i’m looking to
cover it’s a very quick trade and you’re
scalping momentum
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i’m looking to cover around 1 8 of my
position
just covered in 8th now down to a
quarter coming into the 40s and coming
into
some potential areas of
support in the low 40s
so immediately in over a minute
up already around three points now three
and a half points breaking below 40.
um covering more down to half my
position now as we come into support i’m
watching volume
i’m also looking to see if the bird
holds at this area
and we get some sort of buying in a
reversal which now looks like we are
seeing 40s hold
step below 40 39 78
39 50s and now down to a quarter of my
position
if we get above 40 now i’m thinking get
above 40
and hold above 40 i’m going to get out
of my position and i’m going to look to
either
shorter bounce or move on
while watching that i’m flicking through
some other names in play just to keep
tabs
with the overall market and some other
in-play low floats
3950s so we’re finding some support the
bids are stepping up
i’m still holding a quarter of my
position i just initiated a small short
position in k and di as well
as we had that breakout on volume and
failed to hold above those levels
covered a small amount
of kodak there and
now that we’ve got about 40 look at that
increase in volume
and look to get out very shortly as
that’s a reversal
kndi i’m short size
we’ve now tried to break out we failed
and now we’re consolidating in the lower
part of this range
just got flat kodak okay india is
consolidating
below 16 and on a break i’ll look to add
for momentum but i’m i’m short about
three quarters of the size that i would
like to have
in i so i just want to add one more lot
and play the momentum momentum on that
break
thinking that we do have the potential
to go immediately into a down
side hold kodak
that reclaim on 40 that increase in
volume that was the spot to exit
k and di we’re just breaking below this
wedge i added i’m now full size for what
i want to be
down about one dollar already and i look
to cover about one
tenth of my position now down by one
eighth
going into the downholes i’m covering it
excuse me i’m adding and now add is
i now doubled my size into that hole
it’s looking for a gap down on
resumption
is my thinking right now
still holding what i added double the
size from the initial break lower
had some problems in that downward halt
so i’m looking to take a little bit of
size
off thinking this may reverse because we
couldn’t limit down
so i just took off about
an eight for one ninth of my total short
position
holding holding took off a little bit
more into
1460 and now i’m back to my original
size so i locked in some profits took
off some risk let’s see if this limit
down sticks
looks like it’s going to offers or
stacking up
trying to short more on the offer often
won’t get filled it’s very tough because
everyone’s fighting for the exact same
fall
oh and i just got fold so i’m short just
a bit bigger on my initial
entry on this breakdown of this
consolidation
covered a decent size
into 15 then i saw lrp appear
on my bids lower down that made me think
that
overall thesis could be right everyone
thinking that kodak
could be the candia could be the next
kodak
all the fomo long sort of entered this
position are incorrect
and looking for that limit down and
essentially everyone that’s long is in
the red and they’re going to look to
panic get out
everyone that wants to show it and
perhaps isn’t in the size they want are
going to look
to just bang in codec i’m not doing
anything with
that scalp right off the open was
perfect on that
volume and quick reversal that was the
right move
to get out and exit that short position
great risk reward
now on this bounce that’s 50 50 in my
opinion does it fail
if it does then i could shoulder once
that lower high’s in
if we break above 44s this could easily
squeeze back to 50 is my thinking now
so now let’s move a little bit forward
to kndi
resumption okay so kndi is about to open
it just opened
still holding looking to cover a little
bit more
into 14 and now i’m really thinking that
this has so now growth 14 i just covered
around a quarter of my position at 13.99
them to get out a little bit more strong
volume
and again i’m scalping momentum there’s
gonna be plenty of opportunity
throughout the day so now i’m holding
just under
a half of what i went into that lrp
worth
i’ve locked in some good gains and at
this point i’m just risking profits
from those morning scouts
so break about 1550 will get me to think
this has the potential to reverse that
would be my stop right now
break below 14 no reason to sell i’d
like to hold what i have
cover on the next down move and i’d look
to get back in
on the next part
it took a little bit of size off there
looking for a consolidation and i’ll add
back size on a breakdown
looking to just scout momentum
in and out nail and bail type of trading
you can see there’s buying whether it’s
actual buying for a balance whether it’s
short covering
who knows but we can definitely see
1460s there are issues
we want to see if it holds we want to
see if it lifts above 1480
and if it does do we hold above 1480
so 14 bit of a quick stuff there broke
below so i shorted a bit more
and i’m going to just rarely look to
hold this against 15
ish
yes we trying to balance
on the offer 1466 1461 is my average
price now
and now it looks like we try to balance
we failed we’re breaking down
so i’m short from 1461.
try to bounce we couldn’t send a step
down buyers ran
out of of their energy and power see the
birds just
completely failed and now i’m covering a
little bit covered one-sixth of my
position there
now looking for low 13s
all right covered more
next cover i’ll be down to half comes
there
down down to half my position and i just
added back at 1289 there looking for the
next lrp
so what i’m doing on the way down on
those extreme washers i’m covering up
again i’m locking in profits
and gains taking risk off the trade
and when we get down to lrp i’m looking
for that supply
to really hit the tape as we so often
see with these low floats that
um really just get hit hard
and so i wanted to see that stick it
didn’t luckily i’m still in from
price is 1380 now i’ve locked in profits
i’m just holding
what i have which is less right now than
when we caught that initial down move
and locked in those profits
took off half into the lrp added back
about a third or a quarter
and so we’re about 70 cents in the money
i’m looking for
a move into the 12s
mid-12s or into lrp
and you know the stock hasn’t given us a
bounce yet and so i’m not greedy
i’m going to look to
cover on divs and add on pops that way
you guarantee yourself
good risk or what if the trade is to
work the best or score that you could
possibly
get okay so now we’re in lrp again
didn’t get that supply heading so i’m
going to take a little bit off
got down to half so a third from what i
initially held here
covered added into the lrp had a bounce
came back
covered where i added and i just got
flat got flattered around
13 13 uh locked it in completely so
really that’s scalping it
from the initial breakdown through the
holes
adding on this breakdown covering and
locking against on the washers
adding on the pops tried on the lrp that
didn’t work
as well but that is how you scout
momentum
and especially when you think about what
everyone else was thinking in that trade
in terms of
psychology in terms of this could be the
next kodak the gap that it had the
previous day
uh after hours to the pre-market um
and really if you take the news is it
fundamentally changing no
the stock went up as much as it did
because of the people that were
trading it and the people that were
buying it and the biases that were
installed in all of those
people and so once price action
confirms the stock
isn’t going to do what kodak did that in
fact they’re more people chasing this
out of fomo
than actually buying it and absorbing
shares on the bid and you see those
offers step down
and you pick up on all of those nuances
then you can look for these breakdowns
to hit in with size
having a really well defined risk you
can look to add into the first downhold
the lrp
because so often we’ve seen a stock open
up 10 15 20 percent low in this case it
didn’t
so you patient you add on you cover some
on the resumption
take off risk lock in profits let price
action talk to you
try to balance it couldn’t i was quick
to take some risk off get out get back
in once i saw that that balance failed
shorted it
covered half on this down move then look
to add into the lrp thing
lrp thinking now you know people holding
bag holders people that are bought for
balance they’ve
they’ve truly lost this battle this
should have
a huge supply and open up lower didn’t
happen um
and so we held through it we covered and
finally on this reversal we got flat so
really we took the stock down from
around 16 to
1280 13ish uh initially risking
just about 60 cents to a dollar
and now it’s reversing and so you know
from here you want to look to shoulder
pop
kodak nice consolidation as well i’m
looking into
trading that um as well on either a pop
to add if we get a lower high or
break down to scalp momentum i’m
shorting
this too and um basically
what we want to see now is we want to
see 40 break with an increase in volume
um however i think we can save this
trade for next time
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