Daily Trading Recap - 3/4/26
Tons of Opportunity!
TLDR
Caught the huge overnight gap down short in BATL
CANF and MOBX were classic small-cap faders, but I left money on the table by covering too early on MOBX.
Stayed with the strength in HOOD and IBIT as crypto momentum emerged following it’s base breakout off the lows.
Trades I Took
After the bell yesterday I watched BATL break the trendline it had held most of the day. Once that level gave way, I pressed the short again and decided to swing it overnight. My thinking was that it couldn’t squeeze higher during the regular session and then started drifting lower in afterhours, so the odds of a gap down felt pretty high. Sometimes they pin a stock all day just to rip it afterhours, but I wasn’t getting that vibe here.
We got the move I was looking for. BATL gapped down and quickly flushed below $20. I covered half around $17.70 and closed the rest after the open as it continued fading, ultimately dropping about -50% from yesterday. Hard to ask for much more than that on a short.
Later in the day BATL actually put in a decent bounce while the other small-cap oil names were completely bidless. I decided to leave it alone instead of hitting a re-short on the bounce. I’d rather see it build a cleaner setup again. If it sets up tomorrow, I’ll reassess.
CANF was one of the big premarket movers after announcing it met a primary endpoint in a Phase 2 drug trial. Despite the headline, this is historically a stock that fades it gap, so I was looking for a short once my faster signal triggered in early premarket.
I got short on the signal and added as it confirmed weakness. I took an initial cover near VWAP and the $10 whole number. Later in the morning I recycled the short again and added on a bounce, but the stock suddenly halted for T1 news pending.
We got the reason before resumption: a warrant inducement deal that reduced existing warrants to $5. The stock reopened much lower and flushed quickly under $7. At that point I covered the rest since it was already down roughly 50% from premarket highs (wow two -50% moves in a single day!). Pays to know a stocks history and personality.
MOBX was a D2GU setup after yesterday’s massive run, where it pushed over 500% intraday on more than 1B shares of volume after announcing an EMI-filter production order tied to the U.S. Navy’s Tomahawk missile program. Moves like that often set up a day-two fade, so I took a short in premarket looking for exactly that.
The trade worked right away off the open. The mistake was covering too early around $1.10 instead of pressing the position. The real move came when it flushed under $1 where I covered more. Later in the day it finally bounced enough for another add and I covered again as it faded back toward the lows. The thesis was right, but I didn’t size into the weakness as well as I could have.
HOOD set up on the long side with a breakout through $80. I bought the breakout with a stop under the level but cut it early when it looked like it might lose $80. It never actually hit the stop and quickly turned back up, so I re-entered.
That re-entry was the right move even though the early exit was a small mistake. I trimmed some shares into $82 and more at $83.5 and tried to add on dips later in the day, but the stock never really gave the second leg I was hoping for. I closed the rest near the end of the day. It probably gaps up.
Bitcoin has been building a big base for about a month, consolidating on long-term support and setting up for a breakout over $70k. I wanted exposure to that move and used IBIT for the trade.
My first entry was mistimed and I cut it quickly. I got back in once BTC firmed up over VWAP and that one worked much better. I sold some into the push toward the high of day and trimmed more as Bitcoin continued pushing higher.
Swings
Current holdings: BE EQT
Takeaways
The biggest lesson today was position management on the shorts. Both MOBX and the oil names had clear “all day fade” behavior, but I was a bit too quick to cover early pieces instead of pressing the winners.
On the flip side, I did a good job staying with the strength in HOOD and IBIT rather than trying to fade them. The market has been rewarding momentum in the right names.
Tomorrow the focus is simple: when the tape is clearly bidless, press the shorts instead of rushing to lock in the first piece.
Hell yeah! Nice job man, epic day. Hopefully opportunity set keeps up!
Nice!