Well well well we knew it was only a matter of time before the drop. the dump. we had the pump and now we have the dump. Cctg the stock dropped over 90% today and what adds icing to the cake on this one is that we knew it was coming.

We knew it was going to happen. It fit the profile of all the other Chinese stocks we've recently seen that have had these kinds of drops. and what gave the confirmation was the WhatsApp scammer who told me himself or herself probably himself that in fact this was the stock that they wanted people to buy. So for those you guys that missed it, well we'll look at the chart here and we'll talk about this.

WhatsApp Scammer There it is. You know this could have happened yesterday. it could have happened any day, but we knew it was going to happen. So this is a stock that uh I got the WhatsApp text alert on it saying it was a buy way way back here when it was at like I don't know uh $8 a share down here on this second day after the IPO and you know it surprised me that it kept going higher and higher and higher.

but I knew it was not trustworthy. Now here's something noteworthy. it continued higher on lighter volume that indicates to me that it was being sort of propped up. it was being held up and as soon as selling came in.

look at this thing. this is kind of wild how much it dropped. So let's look at this in a little bit more detail. Let's get the one minute chart up here.

Full screen. Okay, so basically today it has pretty much no volume, right? It's just kind of going sideways. Very very light volume. and then all of a sudden it halts down right here.

How much volume does it look at this? This is. This is where it gets interesting. right? Here You see this candle. 364,000 shares of volume.

But this is very interesting. It's on that candle there. Look at how tiny that candle is. That candle is really really small.

364,000 shares of volume went through on this candle. Well then this candle right here. All of a sudden, another 150,000 shares and it halts down. It resumes.

So it halts down at a low of $19.5 It resumes. It opens down here at 1069, down almost 50% and halts down immediately. a second time on another 1 15 ,000 shares, it opens again and drops again. Boom.

Another Halt. It opens, and now it bottoms out. hits a low of about what was it. uh, $311 and then it kind of goes sideways.

now. I'll give it to you those of you guys who don't mind playing with fire. You did get a nice a nice bounce here. this was after hours.

I wouldn't have touched it because I would have been concerned about the risk of a T12 halt. uh, and then getting my money just totally locked up. It did bounce, but then there's another dump. So it's a stock that simply was not trustworthy.

We can look at MSS This is another stock, very similar. The chart's going to look similar. It's only a matter of time they make their way up and then all of a sudden Boom the liquidation, the rug pull and they just get destroyed. Now something that is interesting is zjy ZJ yl This stock had the basically this is what happened on ZJ Before this it was up to about $40 a share and then on this day right here it drops to a low of $11 Let's see if we can get the five minute chart up.

It's going to be a little ways back so it drops to a low of $5 What was the DAT of that? Um, it was on December 18th. Let's see. so on December 18th it drops to uh, $11 There we go, go to see if I can get this to load. I I Have never tried using that before.

it doesn't seem like that actually actually worked. All right. Um, so nonetheless, this on on December 18th. what happened was it was at, you know, $40 a share.

It halts down once, twice it halts down again and then all of a sudden it halts up once and I think twice. and then it opened at $500 a share and absolutely destroyed anyone who was shorting it. It was insane. And now what's incredible is this thing is still holding pretty well up around $300 a share.

I Keep expecting we're going to see a day where this thing drops in one day all the way down to like 10 bucks. I Think some short sellers are probably thinking it too, but the longer it holds up, the more you kind of wonder what's happening now. this is right now 40,000 shares of volume. Today yesterday was 40,000 shares.

It has no volume, but why isn't it dropping? Well, people aren't selling and people aren't buying so it's just more or less holding steady. There could be a point where some shorts get squeezed out, but once again I was shocked this didn't get T12 halt on that day and it continues to have that risk if we look at um bam SEC Let's see, um look at the stock. MSS So on this one. Oh, let's see.

um I'm going to go back a little bit further here so let's see. the underwriter was now I can't remember um Joseph Stone Capital Joseph Stone Capital All right. Um, so now let's look for one second at a couple other stocks Joseph Stone capitals been an underwriter for I'm going to do actually um screening here Joseph Stone Capital EJH MSS right? So EJ You could look at that one. That's another one.

It's just a pattern that we keep seeing Un unfortunately again and again and again you see the move up. This one's at 47 cents right now. look at how much it's dropped. This is what seems to keep happening with these Chinese stocks so you know I I Just I knew this was going to happen on um cctg I knew it was only a matter of time and you know there it is today and it's dead.

There was a time where I felt um much more comfortable trading. Let's see Underwriters um trading these Chinese stocks but um Joseph stone Capital but unfortunately at this point I just don't trust him. you know I'm I'm too concerned about being in a trade where something like that happens and you're just destroyed. It's not worth it, long or short.

It's really a shame, uh that this is happening. but you know in back in, well, other parts of, uh, my career. we've had times where we got some nice moves on Chinese stocks but these drops the drops here that we're seeing that's a little bit newer. You know we used to get like this nice sort of Ascension higher and then sometimes go parabolic and they'd make a big move and then over time they would kind of fade back down but losing like 90% in one day.

That is incredible. That's the type of drop that it absolutely destroys Traders Now the funny thing I Don't know if it's a funny thing, but the thing about ZJ yl is ZJ yl. You know, felt like just another example of that happening when we had this drop back here. So like I said, this was at $30 $40 a share and then all of a sudden This day you know it.

the drop came right. So it was like okay, we've already seen that this thing can drop it, dropped it, then came back up and then boom it drops so it hits a low. Here it it goes all the way down to almost $10 Like this was a huge red day. And what's insane is that all of a sudden it halted up and it opened at $500 a share.

That was what was absolutely insane. So let's just think about that for a second. Let's just say you trade with tiny sides and you shorted a thousand shares. You could have lost half a million.

Doar. Let's say you shorted 5,000 shares. You could have lost two and a half million bucks. Let's say you shorted 10,000 shares.

You're down 5 million and you know there's a lot of Traders out there, especially short sellers who average in on these and accumulate huge positions. So it shocked me that Regulators didn't step in and and do a T12 T12 halt when it was showing a $500 resumption. At one point, it was showing a $700 resumption. I'm surprised they didn't halt it right then and there.

Just like stopped all trading. And you know, if you think about GameStop and you want to be skeptical, we know on Gamestock, Game Stop The Regulators Stepped in when finally it was like Robin Hood and the big big firms who were up against the ropes. but when it's retail Traders making silly mistakes we don't get the the courtesy of the the the rules changing and all of a sudden it's not going to Halt or you know they take away the buy button so it can't get squeezed out anymore. So in any case, even though it could have should have would have never happened.

This thing opened at 500 or hit a high of 500 and the people who lost millions of dollars on that trade, there's nothing they can do. they. what are they going to do? File a lawsuit? I Mean it's a stock market. We know it's risky.

There's nothing you can do The people who bought up here then to watch it come all the way back down to $56 Again, there's nothing you can do so you know we had this crazy move, totally insane and I think one of the things that I've said a million times. but I'll say it again here is that you never ever ever ever want to Empower one trade to end your career. So in my career. Well so in 2017 I funded an account with $583 and I grew that account to over 10 million.

but it didn't leave all 10 million in the account now. I suppose if my strategy was different, maybe I would have left more in the account. But right now I've got like $145,000 in my trading account, so less than 1% of my all-time profits is still in the account. So even even if I lost all of that in one trade, which would be a big loss, I would still have 90% plus of my profit.

And that's what's important. You see a tail waging behind me. That's what's important though is that you never want to empower one trade to potentially end your career. Unfortunately with traders who are trading to the short side with stocks like this: WOW With stocks like that, it can get scary and you know.

I I Hate to think how bad it could have been with $140,000 account. You know you, you could easily be in 10,000 shares of a stock like that and you could easily lose $5 million. That's a nightmare. That's type of nightmare that I I wouldn't keep trading.

if I had that risk, it wouldn't be worth it. Why would? Why? Why would I ever? Why would I ever take a trade that could risk giving back that much profit? It's just not worth it. So for me right now, you know yeah. I have some bad trades from time to time.

My worst trade last year I lost 10 grand so you know and I've made over $10 million in profits. So like even my bad trades right now knock on wood are relatively controlled. It doesn't mean that I couldn't potentially you know, get into a a trade on something like a Nexi or a GW uh, Dwac and size into it and and really get smoked? I certainly could. Um, Nexi was was a pretty tough one yesterday I know that one dropped quite a lot, but even still I would rather trade this any day of the week with this type of risk than be in one of these.

Um, well, specifically these Chinese stocks that I'm worried about the risk of it dropping 90% because once it hals down, you're stuck. That's the problem. You're stuck. and now it's all of a sudden showing a resumption 50% lower and there's nothing you can do now.

Yes, circuit breaker hals can happen at any time, but Hest it just. There's only a handful of stocks in the market right now where this is the type of risk we're facing and they all have something in common. They're small cap Chinese stocks. it's just is what it is.

It's a fact we've This is a pattern. We keep seeing it and you could say I'm going to short this because this keeps happening and that's what a lot of people did and then ZJ yl happened. So now I think a lot of Traders are just like I don't even want to touch this I'm not buying it long I'm not trading it short I am just G to trade other stuff because you know what? There's other areas in the market where I can make a little bit of money without potentially risking U You know, blowing up my account. That's the type of risk that there's no Roi for it.

The risk. There's no. it just doesn't make sense. There's that's not a career.

You can't do that. So my strategy has always been about trading every single day trying to generate some profit for income. And yes, I trade in a retirement account. but I'm still just like little bit of profit.

A little bit of profit, a little bit profit I don't want to take a lot of risk I don't want to do anything crazy I just want to be consistent. And although I think it's possible when you know a stock like a Cctg is being pumped on, you know WhatsApp and these other places you can profit on that, you can ride the momentum. But you've got to be careful because when the dump happens and it can be unexpected, it can be violent a drop like that. That's that's crazy.

Now one of the things I talked about. Um, and I've talked about this, You know, pretty extensive L is the fact that there are opportunities in the market that may not be quite as juicy, but consistency with them is I Mean that's that's where it's at. So like Nrbo, you know. So I made $3,600 today.

It's not a home run day, but you know these days add up. Every single day like this adds up at $10,000 every you know every few days or whatever it is. This is fine and doing it. trading a stock like Nrbo? What was the range of the stock? Yes, it had range, but did it ever have the risk of dropping 75% 90% I Don't think so.

You know the the biggest risk on this might have been, um, you know, uh, an offering, but even Crbp? Uh, Yesterday that did the offering. The stock is still at $27 a share, So like you know, it's more or less flat. In fact, it may be in play, if not later this week. Uh, maybe next week because it's still holding up relatively well.

It's pharmaceutical company. You know they did an offering. They priced it $19 a share and the Stock's holding up. So I'm a big fan of trading pharmaceutical stocks.

You know they're risky too. They a lot of them do need to raise money. They do offerings, but even with the offering risk, that, for me, is much more manageable and much more controlled than the pump and dump risk of a stock dropping 80% or 90% in one day. That's just something that I can't handle.

So you know as long as that's happening. I'm unfortunately going to be avoiding that sector and it's tough to avoid a sector. especially. You know I mean look, TR trading is hard and there's not a ton of opportunities necessarily every single day.

So you've got to. You know you want to make the most of what's there and then if you say well now I'm not going to trade anything that's Chinese you know you're going to miss. You're going to miss some opportunities. Some people will say look, I'm just going to trade it I'm going to be careful I'm going to just get in and out and that's what I've always done.

but you know, having since seen a few of these drops recently and that crazy move on ZJ y I just don't know if it's worth it. The only problem is there are going to be times where a stock hits a scanner you know, NXT or something like that NXT a CO I pull it up and I'm like oh, I like this and I jump in and I don't realize initially that it is, um, you know, a Chinese stock. So some of my trades will be so fast that I might end up trading them without quite realizing it and you know that's it, is what it is. But if I have a good sense of something like CCT G I'm not going to touch it, it's just not worth it.

and you know it's just about staying safe. So it's risk and reward. And if you're comfortable with that risk and you think, well, you know there was upside potential here to trade it on some of these days there was, we. just never.

We just didn't know what day this was going to happen. You know I thought this was going to happen at the beginning, but you know they. They definitely pushed it higher before that drop. So it's just the risk that once it halts down now you're looking at 50% lower resumption.

Like all the buyers are gone, they're just they. they're totally gone. So I think that also speaks to the fact that the buyers that were holding it up just disappeared. They're gone.

They pull it. It's pretty shady. So anyways I thought I'd update you on that I saw it um after hours here and I was like whoa, there we go. Okay, yep, it's an after hours mover because it's bouncing.

but it's that was a huge drop. So I hope you guys tuned into the episode that I did on Cctg about a week ago. week and a half ago. Whatever it was.

Um, it is an interesting episode. It talks about uh, how these WhatsApp scammers are targeting people and everything else. So check that out if you haven't already. and uh, you know as always, just be careful.

take it easy. It's not worth it to make a big mistake. So just keep your head up and you know, keep your eyes open. Be careful.

All right, that's it for me. I'll see you guys back at it. Uh, first thing tomorrow morning.