 Testing testing unmuted. All right. Melissa. Can we test your microphone? Hi. Can you hear me? Yeah, okay. Yeah, it was a little muffled there for a moment. I was just waiting for something else. All right. I think we're okay Can you see the screen? Are we all good? Yeah, we're on the screen All right. Hey, can you hear me? I can hear you perfectly Okay. All right. I think we're okay here again. I thought you were a little muffled when he's Speaking here. So all right, let's just get into it with a two cents intro and you're on you can find our fifth presenter at this Stock Swoosh, please welcome. Melissa Armo in great day to be here big saw from the market today and Again, my name is Melissa Armo and I own the stock switch for those of you who don't know what I do I focus on gaps and we're gonna talk about that tonight, but particularly I Do focus on shorts so the market gap down today and sold off big time And we're gonna run through the webinar. I prepared tonight. I did put a slide into the market if we have time I can pull up some charts here see what the market's doing after hours But today we're gonna talk about how you can learn how to read and train the patterns of institutional money and gaps So this is me for those of you that don't know me. I own the stock switch I also appear regularly on Fox business and Fox news and I talk about the stock market So it's very interesting. I've been talked about the market for the last few weeks And I've been discussing about the fact that I thought there was a potential for the market to rally at some point December But I didn't have a hundred percent conviction that the market would make new highs by the end of the year And after the sell-off today, I definitely do not think that that occurs now I could be wrong the market could make a new high But there would have to be a tremendous amount of what we're going to talk about tonight Institutional buying that would have to come in to turn this market around because we just fell so big and so fast today So if you have any questions, you can email me at Melissa at the stockswish.com or call me at 9 to 9 3200 gap So let's get right into it. What I'm going to talk to you about tonight is day trading Okay, I'm going to talk to you about day trading You could day trade for a living if you want to but you have to have a Structure so for me my structure means I get up in the morning Prep and decide what stocks I want to trade in the morning I have a rating system that I rate and I do all of this before the market even opens Then I have my list of the picks then I watch them then I wait for the setups into the open I'm usually in trades between 9 30 and 10 and then I'm in and I'm out So that is how I do it and I am very structured like I said So we will talk about this more and some trades here So if you've never thought about trading for a living it is possible even if you don't live You know in New York now I happen to live in New York But it's not like the olden days where you had to move to New York and work on Wall Street In fact many of the hedge funds of many of the big firms are actually not even downtown anymore. They're in midtown So it's very interesting. You can be a trader You could be a full-time trader and you can live anywhere in the world You can you don't even have to live in the US You all you need is an internet connection at a brokerage account and one of the reasons that many people that live in foreign Countries like to trade the US market is because the US market has a lot of volatility and momentum and today was a great example of that I'm trying to look here through the questions. I'll try to go through the questions as towards the end here How does that sound everybody if I see him on the side here? Anyways, this was the results from November I'm not going to go through each ticker symbol here today because I don't have time But you can certainly go to my YouTube look at some of the trading room videos and the reviews of some of these trades You will see here though. It's pretty obvious that I'm trying to stick to one ticker symbol a day Maybe two but I really do try to stick on one thing because all you need is one Traded day to be profitable and also the less trades you take guess what the less losses you have So I find that less is more if you want to make a lot of money In the market now I did clip this here This is the spy so I'm just gonna review this briefly But what I focus on is gaps so this is very interesting and again going back to what I was saying about volatility the market closed here This was Friday Okay, Friday we had the rally last week the market had a big gap up here This was the day the Fed came out with some news the market liked it rally big Then we gap down then we open neutral then we rally this was Friday Then we gap up so for those of you that don't know what a gap is a gap is a difference between the close and the open So the close of this gap here again. This is Friday was around 275 and change Then we had a huge move This was overnight after the summit and we closed here and we had a big gap up to start out Monday morning So actually what happened here was buying So the only way that the market and again i'm looking at the spy Uh, the only way that this could have gone from 275 all the way up over to 80 Over night So this is from four o'clock Friday night until 9 30 when we open to Monday morning The only way that happens is what it's fine. So institutional just listen to what i'm saying here Institutional money came into the market And bought it from Friday night overnight in the post market and in the pre market Into Monday morning the futures were up. We were up big Sunday night. I mean I saw it as soon as the futures open And then what happened? Then This is again the close of Monday. We did not follow through Monday. Meaning we didn't follow through higher Okay, so the market gapped up, but then we didn't follow through There really was no play here on the actual day on Monday to play the market Now I try to focus on stocks But I do read the market because i'm talking about it a lot on fox And so i'm talking about the market today because of the sell off Anyways, what happened here was this so then we closed Monday. This is four o'clock And then we gapped down now. This was a baby gapped down that happened, but what happened is what? The weight the weight of this gap down took it and once the selling started to come into the market today Again, we closed here and we open here. So this isn't like crazy But once the selling took over it like had this by the throat And then it died and that's what happened. This was an a really really big sell-off today in the market I mean there was no denying it and if you wanted to make money today, you pretty much had to be short something Um somebody's saying something about what? Let me see if I can back up Um, how do you how do you institutional money entering you never answer this? What's your question? I don't understand your question michael Maybe if you can repeat that for me So why would institutions enter and exit the same day? First of all There was no exiting and entering the same day So let I mean if you want me to go back the I mean if you want me to talk about the market specifically The buying came in overnight here and then you had selling that came in the next day So it's not the same day, but I will tell you this and I don't want to get too off topic here We can go over this if we have time when I'm done with the lecture that I'd prepared But I will tell you right now There's a lot of different institutions in the market You have abc hedge fund. You have this bank. You have that bank. They're not all doing the same things So that is why it is extremely important to make good choices and decisions to read it right because You may you did have buying that came in and I will tell you right now That the gap that happened in the market from Friday night to Monday Was the biggest gap that ever happened here in the spy going back to 1999 Which is almost 20 years because I looked at it Monday morning So that buying was real the sell-off today was real as well But to answer michael michael's questions No, you didn't have the same people come in and flush right out And again, we'll talk about that more when I have time at the end But the long and short of it here the synopsis Hopefully this answer is michael's question for now is that I'm still bullish on the market I'm not screaming jump up a dad and sell the world and short the world today after the sell-off I'm talking about today specifically because if you want to learn what I know And you want to trade with me you're going to be focused on day trading So the market today was a day trade That's a big difference than long term long term the market is bullish And I don't believe we break the trend unless we have some kind of war that which you know that could happen Um, anyways, let's get back to this and then I can go back around and just pull up the chart of the market And maybe answer that more specifically at the end But what you want to look at on in any chart is the gap itself And then I prepare by rating it and I have a 26 point rating system Now what was another move today aim at I'm just going to show you this one here again. This closed here gap up Again with the overall market. This was from friday to monday then it gap down Didn't really go anywhere on monday today was the play today was a short So this move went right into the target and fell like a brick This was working in the morning as a sell-off before the market started to break So when you're when you're trading what you want to look at is the footsteps of power that come in Because if you can trade with that move, guess what? It's going to be a lot easier for you to make money when you're going against that power It's difficult and you know what I mean and we don't scalp. I'm looking for a move. I'm looking for momentum I'm looking for it to come in and come in big But if you're against what's happening Whether you're long or short if you've ever traded before you know that feels like it feels like Oh, it's not going. It's not going or when you're up It's just like pennies when you are an active day trader And again, we're talking about day trading, which means you're in and out You're in after 9 30 and you're out before 4 not doing post for pre-market trading But anyways, you are needing that you have to have that momentum. You have to have that move Okay And usually we're looking for a dollar or more Anyways, I usually focus on only a 30 to 60 minute period of time in the morning to trade between 9 30 and 10 Sometimes we'll be in trades later today. Amat was a later trade, but Most of the days I'd say of the 200 plus trading days of the year. I'm in and out very very quick Now here was the aim at talk about institutional selling you see where it happened now again This moved before the market fell like a brick the market did help this move But it didn't do anything for this in the morning This fell and actually you could have captured this and been out of this and in this and the first 15 minutes of the day Here's the gap down in amat stock close to your gap down. This is the first 15 minute bar So you see here where it opened around 38 and change and the low of this bar is 37 You could have played that first bar got out that out in the first 15 minutes It'd been done for the day and walked away the fact is that it kept going But if you do a trade in the morning and you're upright at ways You can take it and be done and just leave but the market fell later And it was around this period here. So this didn't back up at all So this did not back up whatsoever at all It had the market going with it and then it dropped like a brick and that was the rest of the sell-off So that was the second move in amat and actually you could have played this here for a teeny wee little move This is very very late after three o'clock But anyways, this is institutional selling that happened in amat But this started let me get back to the amat That started before the market fell and this would have fallen anyways Okay, it's what i'm saying but the market helped it So sometimes you do have the market if you've got it in your direction of your stock and it helps you But I usually am looking for things any day that are going to go on their own But sometimes you get a bigger move if you have the market helping you now This was a couple of weeks ago Early november another really nice gap really nice move ctrp Stock closed here gap down open drop like a brick gap down again fell So here's where we closed on this day. This is the previous day back in early november ctrp Gapped down it gap down to support So I rate it and I said wait a minute were people going to buy it or people going to short it I said people are going to short it and then we short it And what tells me that is the rating system another big nice move I didn't look this up what this did today, but just on this move here alone You can see the stock was at 34 the night before and within three days down the stock almost lost two dollars A low was around 25 something so eight bucks plus that is a big move for stock to happen That is institutional selling and the case of ctrp that came in and just went straight down like a rock Then there was navidia a really nice one that happened This was in the middle of november a stock closed here gap down This fell on the second the first day But the second day was a much much bigger move in the navidia and again if you're looking to day trade You are really just doing it and getting out you're in and you're out Okay, you are in and you're out and sometimes we're in and out in minutes This was a big trade here though in navidia. This was the second day though Entry was short and you can do this as an option too. So we're talking about the day trade here Which is the equity trade, but if you could have done this as an option I did call an option in this too if you wanted to do it that way the gap rating was high The gap rated 24 points per my system. So the higher the raining the higher the odds trading is all about odds It's high odds in other words getting back to us any about the market low odds The market makes new highs before the end of the year. Is that possible? Yes, is it high odds the answer is no It was not high odds even when I talked about it on television the week of Thanksgiving And it's even lower odds now could it happen? Yes, but low odds So you don't trade low odds you trade high odds because not every single trade that you take is going to work And that's the other reason that I use a stop. So the stop in navidia was 156 76 boom You're in a thousand shares was the risk. This is an advanced risk Did the ad and an ad tells me that i'm getting the confirmation Amat was the same thing today and actually if you played the market too So I want to get the confirmation that it's going to have a bigger move than I anticipated Then I take more so it's like you play it hard when you get it You play it really hard in those days so that you have the big days because some days you may not do anything at all And some days you might have a loss So when you get it and you get it really good and you get a really good gap, which this was again 24 points You play it to the nth degree. So add Price than average price was 153 93 2000 shares total beautiful move down one even further than that it went to a sick number On that day, there was absolutely ridiculous, but it was a huge trade Went into the next number was really watching for 149 broke it bounced out, but this continued And actually going back to this chart here Um, you could have done this as a put and I had called a put on this day It broke into this second day But you know, you could have you could have this is just lower. I mean navidia again I didn't look at this today, but I know it's lower So and that this is on its own without the market too Any questions so far about gaps And again, I'm going over shorts because Because I mostly focus on the shorts and the reason that I focus on shorts is and what's the irony is that the market's bullish Even though we saw it off today is that selling move happens quickly panic happens. There we go Kim said it they fall faster So I do like the fast trains the faster you're in the faster you're out the faster the move You're the less at risk So I in an ideal world I'd be out of every trade by you know 945 You can do an option trade as a day trade. Absolutely. Yes, you can Navidia was a good example of that the expensive ones to spy Could have done the spy today as a put as a daily put it You could have even done it late today and it would have been profitable because of the drop-off You could have bought a put in the spy today But you wouldn't know you would have had to get it in the right direction You would have had to know it was going to fall You know what I'm saying So I get up in the morning I rate the gap that tells me the directional bias Is it going to follow through in the direction of the gap or reverse? And that is what is the important piece of this because You need to get anything that you trade in the right direction If you do not you will lose money If you do get the right trades and the right stocks or the market in the right direction You will consistently profit it is it is about high odds when you trade which means the consistency has to be there This is not about getting every single trade That is a winner because that's just not possible And if you think that you need that then you don't understand what the market is But that is why you have to be strict with yourself with money management Meaning every trade you take should have the same or equal risk and you also should put stops the stops are like the insurance It's the protection. So whether I take 2,000 shares or 10,000 shares or something if I ever would I'm use a stock and we are always trading ticker symbols that have volume. I do not trade penny stocks I do not trade crap We trade stuff that really is being traded by institutions Not the no-namers and most of the things you would know you would know you would have heard of them Uh, let me just see a couple questions here I know there will be a big move the rating system tells me that that's what I teach in my course I go through the 26 points if it rates 20 points or more I know it's going to go in the direction of the gap and have a big move Then I get the confirmation when I get the setup. I'm never in the trade in the pre-market. I still wait I still wait until the open to take it If it gaps you if it gaps you will sell immediately or wait for certain minutes No, I'm not I'm not selling anything at all. I have to wait for the setup So in the class I teach the rating system and also to the entries. I'm not necessarily in every trade at 931 I'm never in anything at 930. I might not take a trade till 10 I don't know exactly when it's going to set up until I see it live and that's the That's the skill. Okay, that's the skill of becoming a day trader I've been doing this for 10 years and actually I've been doing gaps for 10 years, which is a very long time A very very very long time to do one thing. That's one of the reasons I'm very good at what I do It's one of the reasons I'm talking on fox So when you get good at one thing you can become an expert and then you can use that skill to make money If you do not good at one thing you're jumping around at a million different things And some you'll make a little some you'll lose a little some you'll make a middle and at the end of the day You're nowhere You have to get good at one thing if you want to do well There's too many people out there that are doing too many different things That is the worst thing that traders can do and it is the most it is the most common things that traders do and and I I could say I got lucky or it was just fate that I got on to gaps early in my career But I did know that I really only needed one thing to make a lot of money And that was you know, that was very a smart and wise decision for me because it was it was the truth And in all the years I've ever traded and now since I've had the business for the last six years I've realized that uh many many people just jump around One minute they do futures and then they do bitcoin and then they do forex and then they're doing swing treaty And then they're doing options and then they're doing this and they just never get good at anything And then they flip around and it's just waste time I think when you like whether you like this concept that I'm discussing with you tonight And hopefully you do if you do you can you can call me if you don't Then find something else that resonates with you because it really has to number one fit your schedule You have to be able to trade between 9 30 and 10 a.m. In the morning No matter where you are in the world and I'm talking to eastern time So it has to fit your schedule You have to say oh, I get what she's saying here. This this this makes sense I see the concept Because the concept of gaps themselves and the momentum and today again was a good example because of the market sell-off The concept of playing on volatility and big moves and in that in that post pre market action The concept i'm telling you it makes sense and many many people that trade gaps don't do them right I I mean I just know that that's one of the reasons why I had to create my own system Because there was so much stuff out there about gaps and a lot of it didn't work and then I said well This doesn't work. This doesn't work. This doesn't work But then when I would do things I would see there was something to them And so then I created my own methodology, but it really is about the focus and in an ideal world I ever do one ticker symbol a day Tomorrow the market's closed. So there's really nothing to look at tonight I don't know what that means for Thursday morning action But I know there's a bunch of stocks reporting earnings Thursday morning And I do think we have action Thursday because of the market sell-off You can find gaps every day. There's more in earnings season than not earnings season But yes, there are gaps every day whether they're good ones or not Whether they're good or they qualify per my system 20 points or more is a different story Sometimes I'm rate five things and I don't like any of them. It may rate 17 18 19 Then I don't do anything. It has to rate 20 points or me for more for me Why do I choose gaps to day trade because they have big moves and I'm a day trader So you get in and you get out I don't want to invest in something and be in it for weeks and days at a time and in this kind of volatile market It's really not a good idea to be in stuff law overnight that long anyways Unless you really are in a retirement account. I'm telling you stay long the market's a bullish But you should know before january 1st what you're doing with your retirement even still because if you are in a period of time Where you think that you are going to retire I'm telling you 2019 could be nuts And so therefore you can't get scared and sell out of something right a ways And if you're worried about the future then maybe you need to take a step back and figure out where your money is at If you're near retirement or actually even if you're in retirement Uh, you know, uh, is it better to do in cash? Uh Our futures but but but but but but but but but I think you're talking about just uh trading the market If you're talking about trading the market No, you can use margin if you're day trading I don't know why people are scared of margin margin means you are you have the abuse of the money of the buying power For that period of time you're flat every day by four o'clock. You're out. I mean you got to get out So therefore what are you worried about and if I take a stop then I lose what I risk So for another word say I'm just using example say I say 10 by 50 boom and it's a 40 cents So if I take 40 cent risk if you take a thousand shares, that's 400 you lose You don't lose the cost of the position If the cost of the position is 52 thousand dollars in buying power You're not losing 52 thousand dollars in buying power if that position stops out you're losing 400 bucks So margin is you just have to know you have to understand the concept number one And number two you have to know how to use it to your advantage And the advantage is that if you're going to do an end tap nevinia or even the spy You don't have to have three million dollars in the bank to be able to take these positions So you have a margin account. You can trade it a retail broker. You can trade it a prop place Prop places usually require 2500 bucks at a retail place. You're going to need 25 000 to day trade You've got lots of choices of places to go You need to day trade actively with margin or buying power And if you want to make money you need to get comfortable with that concept and understand it Now if you don't know anything about that or unsure then read up about it or you do options options as you pay the cost of it You don't need to worry about margin or buying power But you still if you want to day trade options need to have it set up as a margin account Somebody said they're retiring and they're worried you better talk to your financial planner The rating system you I teach in the class. It's 16 hours I've only got 32 minutes here How much money do you need to trade gaps? That's what I'm saying You have to open up a day trading account a prop place is going to require a decent one a minimum of 2500 bucks If you go to some place that says you can do it for 200 dollars or 500 dollars I'd run like the wind because those places I wouldn't send your money I do the rating in the pre-market Going back to what I was saying hedge funds big banks they control the market They control big money and so far interesting whoever was the person that said it earlier And I don't know we're time we're going to talk about the market But if not, I'll do a video and put it on youtube tonight and go to socks wish and subscribe That that whatever that guy said I don't know what his name was. I think it was Michael It's exactly but that's exactly what I'm telling everybody This year 2019 is going to be so tricky Everyone was saying that 2018 was so volatile this year is going to look like a baby lamb Next year is going to be like a lion for volatility because you're going to see him move like Monday And you're going to see a gap up like that and then you're going to see a sell-off like today And everyone is going to go mad mad and they're going to then say wow Well, they bought today and sold tomorrow. Everything's crazy. No, no, no, no that money that came into the overnight market is still there There's you don't know that that money disappeared today The people that did that are in and the chances that they all sold out today is not high But you had other participants selling out today That's the excitement and beauty about the market You have so many not only do you have a lot of different traders like us You have a lot of hedge funds. Some are small. Some are big Some have 200 billion dollars. Some have 1 million a hedge fund could be any size Okay, you have big banks. Not every bank is doing the same thing either by the way So, you know what I'm saying? It's not like everybody gets in the phone says buy the market sell it here No, it doesn't work like that. And also you have triggers That some of these accounts and retirement accounts too and you saw some of that today That is triggered where a certain sell point is triggered off when it gets past a certain percentage And you saw that in october 2 again. I'm getting far away here. Let me just flip through this SFM was the gap from friday This was a nice move down. Here was the sell-off there Profit on this was 32 40 nice day on friday. This was a quick one 4 000 shares I do with my system with the reigning system. I talked about how much money you need 2500 minimum and a prop account 25 000 at a retail account and I do think education is important first before you trades You know, we're doing and I think the 2019 is going to be very important Why because it's going to be more volatile than this year and if you don't know how to trade or have education You're going to lose and if you do you could have a chance to do very well because of moves like today And you got to capture them and you got to see them and you got to know which direction to trade it So you can make a living trading if you want to but it is all about chunking it out You chunk it chunk it chunk it don't look at like this is the last day You're ever going to trade in the world. You have every day 500 a thousand two thousand three hundred four hundred Every day you're pulling money in and chunking it out I did call this option very late into the close on friday. I'm just going to show you this here The market gapped up. This was friday night gapped up money morning So I called this trade very very late on friday. I saw the buying in the market. This was it This was friday up into 130. This is all the institutions that were buying into this into friday morning in the gap up I called the 280 calls Expiring this friday. It was an immediate win. You just got out in the gap up and it was profitable trade It was 81 return investment contracts cost 160 and you could have sold them for 290 So you bought it friday into the close boom sold it into the gap up a money morning. Okay And you could have made 2600 bucks. This was in the spy But the the benefits of trading options really is you don't need margin But I personally like the day trades of the quick in and out But options are a way to make money also if you can't be in the trading room between 9 30 and 10 So anyways, if you want to learn how to trade, I do think education is important. You can learn my system It's a short time daily. Again, I'm looking at for high probability big move early confirmation of the move between 9 30 and 10 And precise entries. You've got to chunk it out. You can achieve your goals, but you have to be focused You have to be like a laser beam and I'm telling you that you can And if you want to make a lot of money, then you will so I teach the class It's called the golden gap course one strategy one system. That's all that I do So if you'd like to learn the class is december 15th and 16th 9 to 5 cost of the class is 59 99 us dollars You can be anywhere in the world and take it classes online The combo course is 64 99 which is trends in the gap class And I'm doing an early bird through this saturday One price 59 99 for the golden gap and you get the trading room and options later free Through february 28th. So three months free get all my calls like the ones we talked about here today And you get to be the live trading with me and I think it's going to be a great year 2018 was a great year Just quickly here. Let me see the questions How long does it take to rate a gap? Well, I take my time, but if you you know if I wanted to I could rate a gap, you know in five seconds But I like to take my time. So I sit down. I prep I would say if you're brand brand new give yourself six to nine minutes to rate one gap You know if you want to take your time and see everything and make sure you don't make any mistakes If you're rushing it you could do it like in two three minutes But you know, I don't like to rush it So, you know the better prepared I am the earlier I'm up the earlier I'm looking at my charts You know the more situated I am in my mind and it's just better. I get the rating in the pre market. Yes I think that's it Anyone have any other questions? If you're interested in sign up for the class or the early bird email me at melissa at thestockswish.com If you want to trial you can sit in on the rim thursday and friday for free for two days Email me at melissa at thestockswish.com again markets close wednesday National day of mourning and markets sold off today and we'll we'll see here. Let me just quickly pull up here Let's just see where we're at tonight and then I'll and then I'll swing it on over because I'm Well, we weren't down a little now. We're up a little so we hit down here. It looks like the low we broke 270. Look at that Yeah Thank you everybody. Thanks for having me Okay, we want to thank melissa for joining us because you can find the right the stocks whoosh