Riding the ASNS Roller Coaster

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Hey everyone, Ross Cameron here! Yesterday, I jumped into my trading station to find a stock that was already up 700%. The big move happened after hours yesterday and continued pre-market. By 5:00 a.m., it had peaked and began to sell off. Although I missed this initial surge, I still managed to trade it, making it my most profitable stock on the day. Interestingly, this stock got halted more than 40 times during the day. Many traders were puzzled by the frequent halts and their variable durations. Let’s dive into the recap and talk about it!

A Wild Ride with ASNS

Yesterday, ASNS stood out, surging over 500%. The bulk of the move happened after hours and during pre-market trading. It must have hit a 900% increase at its peak before pulling back. When I sat down around 6:37 a.m. and started scanning, I initially felt like I’d missed the boat. However, I saw the strength in the market and got excited.

I noticed some choppy price action early in pre-market, so I switched to a one-minute chart for a closer look. My first trade on ASNS was during a dip at around 8:00 a.m. I waited for a pullback and saw the classic bull flag pattern: green candle, green candle, red candle, followed by another red candle. The candle then bounced off the 9-day moving average. I bought the dip at $4.20, and it bounced up to $4.35, giving me a quick, small profit.

Understanding Circuit Breaker Halts

ASNS was halting so often because its previous close was below 75 cents. Stocks below this threshold halt every 15 cents. These halt levels start at 9:30 a.m. and continue until 3:35 p.m., after which the bands double.

How Halts Work

If a stock’s price stays pinned at a certain level for 15 seconds, it triggers a halt. For example, if the price is at $5, a halt would occur if it moves up to $5.50 or down to $4.50. This halt lasts for at least 5 minutes. The average price over the last 5 minutes determines the halt levels, which are recalculated approximately every 30 seconds.

Halt Levels by Stock Price

  • Stocks above $3: Halts at 10%.
  • Stocks between $0.75 and $3: Halts at 20%.
  • Stocks under $0.75: Halts every 15 cents.

Because ASNS was previously below 75 cents, it halted every 15 cents, making it tricky to trade as it continuously halted both up and down.

Opening Bell Madness

The market opened, and ASNS started at $3.71, quickly dropping to $3.52 and halting down. After it resumed, it halted up just 15 cents higher. This pattern continued throughout the day, causing extreme difficulty for traders trying to execute their strategies. The constant halts led to panic selling and made it easy to get trapped in a position.

My Take on Halt Thresholds

I believe these thresholds need updating. They don’t really control volatility as intended. Instead, they reduce liquidity and increase risk. For instance, another stock priced at $1 that rises to $5 would halt every 20%, while ASNS halted every 15 cents. These discrepancies make trading challenging and unpredictable.

Other Trades of the Day

XTIA Momentum Trade

XTIA went parabolic pre-market and then retraced. I rode its momentum by getting in at $1.87 and following it up. I traded it multiple times, ultimately making $1,600. My strategy was to trade the front side of the move and avoid the back side, which worked well.

GWAV and NVVE

GWAV had a cup and handle formation. I attempted trades, but it was choppy. NVVE was a lower-priced stock that moved from $1 to $1.60-$1.70. I traded it but was cautious due to the risk of getting caught in a halt.

YOSH

YOSH was another small pre-market position, which I quickly exited as it began to drop.

Wrapping Up the Day

I finished up $2689. I traded five stocks and made profits on four, giving me a solid accuracy rate of 80%. The market overall is looking strong, with the S&P 500 hitting all-time highs. Nvidia also showed incredible strength after announcing a stock split, and I regret not taking a position.

Feeling Optimistic About the Market

It’s still early in June, but I’ve built a nice cushion. My weekly goal is usually between $15,000 and $20,000, and I’ve already hit that. Now, it’s about maintaining this success and adding a bit more profit as the month progresses.

I’m grateful for the strong market and the good start to the month. Trading is risky, and while my results aren’t typical, it’s essential to manage risk and take it slow. To fellow day traders, stay focused, manage your risk, and always be ready for the next opportunity.

Stay Connected

Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.

You can learn more about me on RossCameron.com and Tirekickers.com

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