Three massive morning shorts: Wyhg, ilag and UTSI
This morning was a perfect example of why I believe every trader must learn both sides of the market. While many traders were busy chasing stocks higher, some of the biggest opportunities were actually on the short side. I traded WYHG from approximately $6.40 into the $3 area, ILAG from roughly $5 into the $3 area, and what I believe was the most obvious short setup of the entire morning, UTSI from approximately$9.10 into the $4.10 area. These were not random trades. They were the result of understanding how low float stocks behave after becoming extended and recognizing when momentum begins to fail.
The standout trade was UTSI. In my opinion, it was the cleanest and most obvious short of the day. After a powerful move higher, the stock became extremely stretched and started showing the classic signs of exhaustion that experienced traders look for. Once the buyers began disappearing, the down Move accelerated rapidly. Watching a stock fall from around $9.10 into the $4.10 area is exactly why learning the short side is so important. These types of moves can happen much faster than most people realize, especially in low flow stocks driven by news, speculations, and algorithmic buying.
Wyhg and ILAG provided similar opportunities. Wyhg collapsed from approximately $6.40 into the $3 area well ILAG dropped from around $5 into the $3 area. Together, these trades reinforced a lesson that I teach repeatedly: Most trading educators focus almost entirely on buying stocks, while some of the best opportunities often come from recognizing when a move is ending. The market rewards preparation, patience, and discipline. Every day I continue to study charts, review trades, and improve my understanding of price action. Days like today are unusual, but they are also a reminder that when preparation meets opportunity, exceptional trades can develop very quickly. The goal is never to trade constantly. The goal is to wait for the highest probability setups and execute when the odds are heavily in your favor.