1/8/26 - Daily Market Recap
Lots of action today!
TLDR:
Sold BE swing into the strong morning gap on news. Shorted SIDU on the bounce, covered partials into the flush to 4.20, holding a small remainder overnight. Avoided CRML early, then built into a full short near VWAP and held through an afternoon bear flag. Started an IREN swing on a 10/20 EMA reclaim and mostly stayed out of chaotic small-cap action.
Trades I Took
BE gapped up big on news of a $2.65B deal with American Electric Power to advance fuel cell power generation. I was already in this from a $96 breakout swing and sold into the morning strength. No reason to overthink it. Big news, strong gap, and liquidity. I’m still trailing a small piece.
SIDU looked like it put in a potential topping day yesterday and opened flat this morning. I shorted the bounce and added on the turn. We got an opening range break to the downside and I covered some into the fast flush, then tried to recycle around the bounce.
The stock kept bouncing back and reclaiming levels. After the second attempt at breaking under yesterday’s low for a daily bar break, it finally held and washed into the 4.20 area, where I covered about two-thirds of the position and held the rest for an overnight swing looking for sub $4 covers on the rest.
The trade itself was fine, but this was a reminder that not every good-looking daily setup turns into a smooth intraday trend. Patience and partials mattered here.
Right out of the gates it wicked under premarket lows, reclaimed, and then went straight up making new highs. That’s the exact spot where forcing a short gets you squeezed. I stayed out early since it never triggered an entry per my system.
Later, CRML finally setup to the downside but went straight down without giving much of a bounce. I only had a small starter on since I was waiting for better structure. When it did bounce, I added lightly, then waited for a bigger push. We eventually got a move up into VWAP and I added to full size, risking the mid-14s.
It spent the afternoon pulling back and consolidating near the low, forming a bear flag. I trimmed some at the close but I’m holding for a deeper fade with the view that a short-term backside is in and a retest of prior day lows is a reasonable minimum target.
Bought IREN for a swing on an undercut and reclaim of the 10 and 20 EMAs, which also lined up with the 43.5 breakout area. Stop is low of day.
Other swings I’m in: BE RDDT IREN
(Sold RKLB for small profit after it’s momentum burst and topping candle today)
Notable Mentions
RGC put in a really nice first red day setup on the daily chart. Intraday, though, it was a bit messy with low liquidity and wide spreads. I passed on the trade.
Wild China liquidation move. These names are just brutal. By all standards you’d think the backside was in late morning, then it fully reclaimed, halted up just beneath hod, gapped over highs, trapped everyone, and immediately failed back down. It’s a good reminder of how unforgiving and frustrating small caps can be if you’re not selective.
FLYX was a D1 gapper on a catalyst and a former SPAC. Earlier in the morning I mentioned on X that it had tailwinds from the aerospace sector, high insider ownership, and high institutional ownership (IO). Those factors don’t necessarily make a stock immune to fading, but I’ve noticed they often turn into headaches on the short side hence why I avoided it.
The stock was trading decent volume and also had a big daily pivot nearby. It squeezed early, halted up, and then spent the day chopping around in a range. Of course they go and announce an offering in afterhours.
Takeaways
Today was a good example of why patience matters more than activity. Selling BE into strength was clean and straightforward, while SIDU and CRML demanded restraint and flexibility. Avoiding potential headache trades like FLYX and staying out of chaos like SXTC saved a lot of mental capital. Going forward, I want to keep leaning into clean swings and structured backside setups, and continue being selective when liquidity and behavior aren’t lining up.
Reading this post gave me a clearer understanding of how you approach trading as a discipline rather than a series of bets. What stood out was the emphasis on preparation, patience, and risk awareness, as well as the willingness to avoid situations that do not align with your defined process. The focus appears to be less on activity and more on decision quality, adaptability, and capital protection. For someone outside day trading, this was a useful window into how structure and judgment shape outcomes over time.