Qullamaggie: Stream 51 - 55 Review [Jan 2020] - Always Follow The Trend
A Review of Kristjan Kullamägi's Livestreams (Stream 51 to 55)
Over the months I have gone through every stream that Kristjan Kullamägi (@Qullamaggie), a prolific momentum swing trader, has ever posted. Below I have categorized my notes into topics relating to his streams. Comments made by me, on my thoughts on a particular note, are italicized. There is an index of all current streams that I have made notes on at the bottom of the post. If you want to start from the beginning of his streams see here:
For reference, the chart below shows the overall market (SPY 0.00%↑) KK was trading in, at the time of the streams (Jan 17, 2020 to Jan 27, 2020):
Stream #51: “Another week of GREAT trading opportunities! Jan 17, 2020”
BreakOut Setup Examples:
JMIA 0.00%↑: Had an article that they don’t need any more financing for the rest of the year. This has been hyped as the AMZN 0.00%↑ of Africa. They’re burning a lot of cash and will probably go bankrupt but they had this article, where price then broke out of this bottom base with high volume. I bought it when it took out these highs were already up 13% on the day so little bit of a chase, and then after that the volume started to come in a big squeeze occurred into the close.
The stock only had a 26% leg up initially. And was just starting to show life. KK entered on a short but tight consolidation after a strong catalyst hit and volume started to pick up.
DIS 0.00%↑: I think the entry was a couple of months ago when it broke out of this pattern here, had been building Higher Lows (HL) for multiple years in this nice flag and broke out on news that they were going to price their Disney service lower than competitors, but it’s an investing stock, not a trading stock.
Thinly Traded Stocks:
In reference to XP 0.00%↑: You have to be so fast on thin names, that’s the problem with a lot of recent IPOs, and it’s not even a small company 21B, just bc it’s a recent IPO a lot of algos and funds haven’t found it yet and that’s the reason it’s so illiquid.
Trading Lifestyle:
It’s a pretty chill lifestyle, not a lot of worries, no one can tell you what to do, I haven’t had a real job for the past 6 to 7 years that’s a pretty good feeling. All my friends are always complaining about something, colleagues or bad bosses etc, I don’t have to deal with that corporate bull sh*t, politics stuff like that.
On the other hand, KK has said many times that throughout the entirety of his trading career, he was depressed due to the stress of trading. Pro and cons to this game really…
Stream #52: “Flu stocks waking up. Jan 21, 2020”
BreakOut Setup Examples:
JAGX 0.00%↑: I bought some. It’s a beaten down name, been building HLs for over a month, and had a range break on volume on Friday.
FCEL 0.00%↑: What an amazing stock, I put some sell orders out there, the thing is it was probably a buyable setup Opening Range Highs (ORH) at $2.63 but since they have an earnings release coming up I’m a little bit cautious on it since it is a piece of shit, I wouldn’t be surprised if it gapped down 30-40% on earnings. But if it had earnings maybe next week or something I would maybe add on ORHs because I really think this can go to $4 on this next leg higher.
Stream #53: “I gave back $200K in profits on FCEL 0.00%↑ in 15 minutes… Jan 22, 2020”
Stalking Open Positions:
FCEL 0.00%↑: I gave back $200k in profits in like 15 minutes. I locked in some on the way up. Then earnings hit and I didn’t see it. I was lacking in doing other stuff. It’s easy to get complacent in a market like this. The mistake I made was I should have stalked it, and watched the chart constantly because it could have squeezed higher also, I should have watched the first reaction and sold most of my shares on those first few candles when it went red premarket.
Stream #54: “Test driving a Tesla Model X today. Going to manage TSL 0.00%↑ A short from mobile. Jan 23, 2020”
Shorting Stocks (Breakdown):
TSLA 0.00%↑: $TSLA looking for some kind of add spots today, shorted 2000 shares at $585 this late-day breakdown from the highs. Pretty much a perfect entry. $TSLA is the stock that has the most fanatical bulls and the most fanatical bears, I’m just trying to trade it.
I wouldn’t say this is a normal Parabolic Short play that KK discusses frequently but more so an intraday breakdown setup if I had to classify it.
More Context:
APT 0.00%↑: Bought some, I have to be long at least one of these virus stocks, so annoying these stopped me out the other day.
During this time, COVID stocks started to make their first legs up. We have to remember on December 2019, is when the COVID virus first emerged. We will see in just a few weeks the COVID stock crash but as for now, KK is on the trend and is ready to jump on it as they start making their move.
Stream #55: “My coronavirus plays gapping higher. Jan 27, 2020”
Market Sentiment:
One thing I’ve learned over the years is you really have to pay attention to the market, I’ve not always been good at it and I’ve always if I’ve seen a good setup I buy it but there are market environments where you’re going to get chopped around really bad if you just keep buying every good setup.
Sector Rotation:
Corona plays popping up everywhere, started with 3-4 names and already have 18 names on my list now, they’re pumping everything on this thing. All these useless stocks they’re pumping, but that’s what happens when there’s fear in the markets. We’ve seen this many times before with Ebola, with Bodycams, Fuel cells, and Marijuana, they start pumping all of these useless stocks and it’s so hard to chase too because you don’t know which ones are going to go. I’m pretty much looking for ranges, I may buy some of these later in the day or in the next few days if they build some nice ranges in the 60min chart, otherwise, I probably won’t touch them.
Breakout Setups:
Tickers like BABA 0.00%↑, SE 0.00%↑, STNE 0.00%↑, AVLR 0.00%↑ are nice growth stocks, real businesses, lots of institutional holding, and buyers coming in. I think these things will be much higher over the course of this year unless the market goes into a bear market ofc. All of these other things I see pretty much as hedges to smoothen out my equity curve, like today on the gap down I gave back like $200k on my longs but I made like $200k on these hedges so it kind of smoothens it out so I’m not really making money either way. Even if we pull back more I want to keep my long stocks unless they really start breaking down and stop me out that’s another thing, but I think this is just a scare.
Software:
I use IB (Interactive Brokers) platform to find gappers, I think there are some free websites too and I also use Twitter, Twitter is also good to find gappers.
-F4VS
Index:
Stream 51 - 55 [Jan 2020] - Notes