 What's up everyone? Today is Monday. Today is YouTube Live Day. So normally I usually do these videos live, but today I was having some tech issues. So I said, you know what? Instead of making a live video, let me actually record a video and let me post that up. So what we're going to be talking about today is the COSM short squeeze that happened last week. This was a crazy, crazy stock. And we're going to also be talking about what happened today with the recent price action. So let's first start off with what is a reverse split? A reverse split occurs when a company share price is usually under a dollar a share. The NASDAQ has a rule that says that a stock must hold a $1 share bid or it is at risk of being delisted. So what ends up happening is oftentimes they reverse stock split a stock. So a normal forward split, which is what Apple, which is what Tesla do is they take their $1,000 share price, they divide it by three, and they give you three times the amount of shares. A reverse split is instead of dividing it by the number, they multiply it by the number. So in COSM's case, it was a 25 for one reverse split. So I think it closed around 20 cents, 30 cents. So you would do 30 cents times 25, which is the reverse split number. And that would equal the even price. In addition, the amount of shares that you hold would get divided by 25 to account for the new price and share. So technically, nothing really changes. The share price changes, but the amount of shares that you own gets divided, which means pretty much the same thing. That's a reverse stock split. A forward split, which is what Apple, Tesla, Amazon do, is they'll divide the, let's say it's just to make the math easy. It's a two for one split. A $1,000 stock gets divided in two to $500 a share. And then they would multiply the amount of shares you have by two. That's a forward split. Reverse split is they multiply the share price, divide the shares owned. Okay. It's a little bit complicated. You can kind of Google it if you want, but that's the case. So in the case of COSN, they had a reverse stock split. The break-even price was around $8.20. Okay. So after the split, the break-even price was about $8.20. On the day of the split, there must have been some sort of robotic error. There must have been some sort of trading error, but instead of the stock trading at the new split price of $8.00 a share, which would be break-even, the stock started trading at $1.00 a share, which is 90% down. This is a big, big, big, big problem. It's a big inefficiency. That means that someone somewhere screwed up. Now what has happened in the past is whenever there's a screw up like this, they say, you know what the trades from, you know, 4 AM to 8 AM, they don't count. We screwed up. They oftentimes halt the stock. They kind of do a bunch of stuff, but in this case, it was very odd. They did not halt the stock. They did not break the trades. They didn't do anything. So number one is there was a huge inefficiency on the market. Imagine if your stocks break even price, let's say Tesla closed at $150 a share yesterday, and then the next day it opens up at $25 a share pre-market, you're going to buy it because there's a problem, right? That's not normal. For a stock to be closed at $8.50 and to then pre-market the next day be at $1 means that there was a problem. There was an inefficiency and there is an edge to go. So I know a lot of people that went long. I should have went long. I was not really focused on that. My brain was just like, you know what? There's no way they're going to let these, there's no way they're going to let the stock trade. It's going to be halting, right? The same thing. If Tesla was trading at $150 a share on a Thursday and then on Friday it was trading at $20 a share, that's a problem, right? The split was not adjusted correctly. The split should have been at $8, but for whatever reason, stock did not trade. Okay, that's number one. So imagine the stock to break even price is $8 a share. Stock is trading at $1 a share. So chances are it's probably going to go back to that level because that's the normal market price of the stock. Stocks tend to go to their normal value usually. So on a case like COSM, it was just an algorithmic error. It was like an inefficiency error. It was just like an error, error, error that I thought in my head, there's no way that they're going to get this stock trade. There's no way that things are going to happen. And it turns out I was wrong. Turns out they didn't do anything. They just said, you know what? Fuck it. We screwed up. You want to buy that at $1 a share at $8? No problem. Done. So that was a really big opportunity for a lot of people. Now, what ended up happening additionally to that is a lot of people said, okay, now it's at $8 because the stock went from $1 to $3 to $4 to $5 to $6 to $7 to $8. Just start to grind, grind, grind, grind, grind. At that point, a lot of shorts got involved and said, wait a second, wait a second. This stock just went from $3 to $4 to $5 to $6 to $7 to $8. I'm going to short it at $9. I'm going to short it at $10. And all of a sudden, before you know it, the stock started to squeeze from $10 to $11 to $12 to $13 to $14 to $15 to $16 to $17 to $18 to $19 to $20 to $21 to $22, right? $22. So all of a sudden this stock that was at $8 yesterday, right? $8 yesterday opened up at $1 and went from $1 to $20. The craziest thing I've ever seen, crazy, crazy. So a bunch of shorts got squeezed, a bunch of people lost money and a bunch of longs that bought on the inefficiency that bought on, hey, wait, wait a second. This stock shouldn't be trading at $1 to $2 to $3. I was just closing at $8 yesterday. Buy, buy, buy. And then all the shorts are at, when the stock is at $8, $9, $10, all the shorts are like, wait, what the hell? This thing just bounced like crazy. I'm going to short it at $11, $12, $15, $16, $18, $20 to $22. Stock went crazy parabolic, crazy, crazy, crazy, which led to pretty much a 10,000% short squeeze of 20,000, some insane number, right? So that's number one. So what ended up happening after that, right? What ended up happening after that is as you guys know, whenever we say that there's a big short squeeze after that comes a big, big, big flood of new stocks running. So because COSM was a reverse stock split, today any stock that announced a reverse stock split got pumped up, right? And normally reverse stock splits are not good news. A reverse stock split happens when a company share price is so bad that they have to adjust it to stay listed. So normally reverse stock split is very, very bad, but the theme of the market is you got to buy these reverse stocks right now, right? And I'm not suggesting you do that. I'm just saying that's what the theme of the market is. So fast forward to today, this morning pre-market, okay? Yesterday, Friday at the close, stock closed at $22 a share. After hours, right? So at 4 p.m., the stock closed, so let's rewind. At 4 a.m. on Friday, stock was trading at $1 a share. At 4 p.m. on Friday, it was trading at $20 a share. So from $1 to $20 a share is what it was trading at. And then at 4 p.m., when the market closed, the stock just collapsed. It went from 20 to 18 to 17 to 15 to 14 to 13 to 12 to 10 to fucking $8. So it went all the way from $1 to $20 until the market closed. Market closed went from $20 to $7. So it just straight up collapsed. This is very irrational price action. This price action doesn't make sense, right? It's very hard to make money trading shit like that. So that's what happened. Now you think to yourself, wait a second, why did the stock that closed at $20 collapse all the way to $7? What the hell's going on here? Why collapse, you know, fucking 60% in the after hours? Turns out this morning, COSM had bad news come out. An offering came out with warrants, which means that probably someone on Friday knew what was happening. So what they did is they pumped the stock up on Friday, went to all the bankers over the weekend and said, look at how good my stock is. We went up 10,000%. Give us some money. Banks said, okay, we'll give you money at a discount offering, stock collapsed, stock cratered. And here we are stock is down 60% on the day. So this is the typical, typical pattern of a short squeeze stock, right? First, the longs win and the shorts get burned and the longs get burned and the shorts win. So this was a very, very, very irrational thing. Oftentimes when a reverse stock split happens, they don't screw up the price. The price gets adjusted correctly. Everything works correctly. I mean, for the future, if you see a reverse stock split that was supposed to be closed at $8 and is trading at $1 the next day, chances are someone screwed up and that's a good opportunity to buy. In terms of shorting these stocks, I mean, it's just crazy because even me, I'm like, shit, this thing is at $8, $10, $11. I'll short it a little bit, you know? And then all of a sudden you look at, you're like at $20, $21, I don't know what the hell just happened here. So in terms of stocks like this, guys, this is just like an abnormality. This is like almost like an impossibility. This is something that's probably not going to come back for the next like five years. So in terms of how to make money on this, I mean, it's just ignore because in trading, our job is to repeat the pattern. Our job is pattern recognition and this pattern that only comes around once every five years. I mean, chances are it's not really that important, whereas we're looking for the patterns that show up every single day. So do not be fooled by a stock like COSM that had a massive opportunity. Yeah, massive opportunity, but chances are it's probably not going to happen again. Chances are it's probably not repeatable. And chances are that, you know, the next time it happens, it's not going to be for a while. So what we want to do as professional traders is we want to be able to find the stocks that fit a pattern that we could repeat every single day. And that is what we are doing is we are looking for stocks that have patterns that repeat every single day. So in terms of this stock, what you should be looking for is you should be looking for reverse stock splits to get hyped up. In my opinion, they're going to come right back down. So be careful investing in these reverse stocks with stocks. They're not good opportunities. Be on the lookout for the next stocks being pumped, because oftentimes after we have a crazy runner, it means that more crazy runners come into the market. So keep in mind those are really, really good opportunities. And in terms of the end of the year coming up, you know, I'm recording this video, you know, there's two weeks left until the end of the year, there's going to be a lot of, lot of, lot of tax loss selling, which means that people are going to be selling their positions for a loss to offset taxes. So there's going to be a lot of funky price action. So I've even considered taking the next, you know, week, two weeks off from trading, but you know, me, I'll be here. I'll be here helping. But aside from all that, this was a really, really, really tough year, really, really, really hard year, really humbling year. And I know a lot of people that lost a lot of money this year, you know, it was definitely a tough year for me. But I hope that coming into next year, coming into 2023, we see more opportunities. We see more short squeezes. We see more runners. And, you know, I will still be here every Monday to make new videos. I will maybe come here and make videos every single day. And I just want to ask you guys, as the loyal viewers on YouTube, what more do you want to see from me? We've been making these videos for three years and no one is watching them. And after a certain amount of time, it gets very discouraging, very unmotivating making these videos. So I am begging you guys, leave a comment in this video with what you want me to make videos of. Do you want shorter videos? Do you want longer videos? Do you want live training videos? Because I've been making the live training videos for lifetime members. You know, what do you want to see? Do you want more day training vlogs? Do you want more chart reviews? I don't know what you guys want. So please tell me what type of content you want to see from me in the new year. And I am going to double down on this YouTube channel. I'm going to triple down on the content, but I need to know what you guys want to see. So please, please, please leave a comment. Let me know what content you want to see. Let me know what you want to watch, and I will create that content for you. So thank you, everyone. Appreciate you. And I will see you back in the room. Thanks.