Hey everyone, Ross here! I sat down yesterday morning to a surprising stock move that had already skyrocketed 700%. ASNS, the stock in question, started making big moves after hours yesterday and continued to surge pre-market today. By 5:00 AM, it hit its peak and began to sell off. Even though I thought I had missed the best part of the action, I ended up trading ASNS and it became my biggest win of the day. What’s more intriguing is that the stock got halted more than 40 times throughout the day, a phenomenon that baffled even seasoned traders. Let’s dive into the recap!

Stock Recap

When I first looked at ASNS, I saw a stock that had already jumped 700%. This move started after hours and continued into the pre-market. By 5:00 AM, ASNS peaked and then began a steep pullback. The first thought that crossed my mind was that I had missed the big move, but I decided to keep an eye on it.

Despite initially thinking I had missed the boat, I ended up trading ASNS effectively. It wasn’t easy, though, as the stock experienced over 40 halts throughout the day. The frequent halts, varying between 5 and 10 minutes, left many traders scratching their heads.

My First Trade on ASNS

Pullback Strategy

My approach started with a pullback strategy. I waited for the green candles to be followed by the first red candle. I was looking for a bounce off the 9 moving average.

Trade Details

• Entry: Bought the dip off the 9 moving average at around $4.20.
• Exit: Sold at $4.35 for a quick gain.

Second Trade on ASNS

• Entry: Bought the dip again at $3.83.
• Exit: Sold when it bounced up to $4.48.

Circuit Breaker Halts Explanation

Halts for Stocks Below $0.75

Stocks priced below $0.75 halt every $0.15. These limits start at 9:30 AM and continue until 3:35 PM, after which they double to $0.30.

How Halts Work

Halts are dynamic. For instance, if the price is at $5, the stock will halt if it goes up or down by 10%. If it drops to $4.50 and stays there for 15 seconds, it will halt for at least 5 minutes. During the halt, people can prepare buy and sell orders, leading to supply and demand imbalances when trading resumes.

When the market opened, the halting made ASNS nearly untradeable. The stock opened at $3.71, then dropped to $3.52, and halted. This cycle of halting up and down continued all day, making it extremely difficult to get in and out of trades.

Other Stocks Traded

XTIA: Riding the Momentum

I also traded XTIA, which went parabolic pre-market but then came back down. As a momentum trader, I look for fast-moving stocks and jump on the wave. I made the most money on XTIA with a series of smart, quick trades.

• Largest Position: Bought 500 shares at $1.87 and traded up to $3.05, making a cool $1,600.

GWAV: Choppy But Lucrative

GWAV had choppy price action, but I did manage to trade a cup-and-handle formation.

NVVE: Lower-Priced But Rewarding

NVVE was a lower-priced stock that I bought at $1. It squeezed up to $1.70, providing a decent profit.

YOSH: A Quick Ride and Quick Exit

YOSH was another quick trade. I bought a small position pre-market but quickly exited when the stock started to drop.

Trading Results

• Profit: $2689
• Trades: 4 out of 5 stocks traded profitably
• Accuracy: Solid

Overall Market Strength

S&P 500 Hits All-Time Highs

The overall market is truly impressive right now. The S&P 500 has hit all-time highs, and Nvidia shot up by 20% after announcing a stock split. I regret not taking a position in Nvidia earlier, but I’m glad I hold some shares in my long-term account.

Strong Start for June

With $14,000 in profit so far this month, I’m already hitting my weekly average goals. (My results aren’t typical. See full disclaimer here) It’s a great feeling to start off the month strong. The aim now is to maintain this momentum and add some icing on the cake.

Final Thoughts

Understanding Circuit Breaker Halts

These halts can make trading difficult. They trap traders both long and short, increasing risk. I wish they could make these halts dynamic based on current prices rather than fixed thresholds.

Trade the Momentum, Cut Losses Quickly

The lesson here is to trade the momentum and always be ready to cut losses quickly. This market moves fast, and if you’re not fast, you can miss big opportunities.

Manage Risk and Live to Trade Another Day

The market looks good right now, but it’s always important to manage your risk. Live to trade another day and keep your eyes on the prize.

Stay Connected

Warrior Trading was founded by Ross Cameron in 2012, and is now a thriving community of thousands of traders. You can learn more about joining the Warrior Trading community here.

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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.