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Dave Barnhart shows how to use MobiTick to spot stock trades from institutional dark pool activity. He walks through filtering for opportunities, analyzes AAL, BABA, and MSFT with support/resistance levels, and explains how to set entry, stop, and target prices for each trade.
Chapters
Hey there. So you have nothing to trade. Well, welcome to Moby Tick, where we see all the institutional trades coming in every second of the day here. Right here's a block trade indicator. So you have lots of things to trade. But if you don't have anything and you're looking for something, well, whether you're a day trader, a scalper, a swing trader, long-term investor. We've got you covered. So what we're going to do in this video is start from scratch and see if we can find some stuff to trade. Okay, so there are some help videos for all of the components of Mobitik. I'm just going to take us back to the home page for a second and just show you the help section. Here on the help section, there's all these how-to videos, and there'll be more of this coming. So each of the individual features here—block trade indicator, print lookup, and so on—they're all here. So they're all a few minutes. Each to give you an overview of what we're actually looking at. But what we're going to do is find something to trade. So let's go back to our dashboard here. And if we're looking at the block trade indicator, well, the market is open anytime from 4 a.m. Eastern time all the way through till 8 p.m. We're going to see trades come through. It'll be slow pre-market, as you'll notice. But then, as we get further on into the day. We'll see that there's lots of things to trade. Now the Block Trade indicator, I've got this set up. There's 4 individual cards that are here. The default is everything that's 50,000 shares or higher. So I can select this here and see, I can give it a name, a minimum share price, and a minimum print size. And we can select individual tickers if we want to watch them. So here, what I've got is all of the things 50,000 and higher. I've set the second column to 100,000 or higher, so we can see those there. The third column I've set to 400,000, and then the last one is a default. Um, I haven't given it a name yet, but for the purposes of this, if you were— if there was anything that you were watching, you could actually add it here. So I unselected all tickers, and if I want to put in something, for example, Just the SPY, and then maybe the Q's, and then we'll do IWM, and then we'll do the DIA, and then everybody usually trades these things like Apple. And then if I choose submit here, And this is over 50K. We can see that. Then those are all here. Okay, and then I can adjust the share size if I wanted something larger for those. But we can see, for example, that there's a bunch on the SPY 567.98. That seems to be the Levi level for today, which we'll talk about a little bit later. But these are late trades that come in where the volume should have been reported yesterday. There's a little bit of a loophole there where in certain trade situations they can report them up to 24. Hours late. So we'll see what that value is, and we can see what the ongoing value is for these indices because those are the 4— the SPY, QQQ, IWM, and the Diamonds— if we go back to our dashboard here, which is kind of our general console to get a feel of what's going on for the day. So right now here on the dashboard, we actually see these late prints for today, which is October 4th. And for the SPY, there's 7 of them at 567.98, and we're above that right now. We're at 572.78, and this is $500 million, and there's 7 trades so far. So we can see that each of the indices has some trades. So there's $100 million on the Q's, $28 million on the IWM, $43 million on the Diamonds. So this dashboard here gives us a bit of an economic calendar. So what we can do is we can select the globe and say we're looking for the US. I'll choose apply. And then here we can look for high-impact news that can affect the market. So on October 10th, for example, CPI numbers, all of that. And then this could be forward projecting. Uh, there was the stuff for today, non-farm payroll, unemployment rates. So you can see that sort of stuff. And that's important because when that news hits, there's usually volatility and people like to trade into that. Or if you're in a trade, you might want to get out just before the volatility hits. Here at the top, we have the top trades for the day. And how this is calculated is that we find the trades With the highest dollar value and volume and the number of trades. So right now the largest is LQD, which is a bond, bond ETF, $111.50, 4 trades totaling 3.7 million shares of $420 million. The second one is the SPY, $504 million, and we can see these here, the top 10. Right. So, so right now there's bonds, the indices. There's another bond one. Not sure what this one is. VOO is an S&P 500 ETF. And then we have JP Morgan for a bank and this IGIB, which is interesting. This is a corporate bond ETF. And there was one trade for 4 million shares for $218 million. So here we kind of get a feel for what's going on in the market. Now it's late in the day. The market's It's only open for another 15 minutes. So we'll hurry through some of this. Can see upcoming earnings and we can sort by market cap. Everything here, you can choose nano caps and you can tell what the value of a nano cap is, cuz you can see that's pretty much under $50 million. And so these are the earnings coming up in the next week. We can start with the megas and see JP Morgan is October 11th before the market open. Pepsi's October 8th, and UnitedHealth is October 11th. So if you're planning some sort of trade around earnings, you can see these sorts of things as well. And these are all giving you ideas of things that you can trade. Large caps, BlackRock, Delta, Domino's, Wells Fargo, right? October 11th. So the banks are starting to report in the next week, starting next Friday, it looks like. We'll have some bank reported earnings. So the dashboard is quite good. And now we have our block trade indicator. So we see the trades coming in. We see a general overview of the market for the day. So if we were looking for other things to trade, what we can do is we can go look at the opportunities. So the opportunities here, it actually gives you an overview Of the entire market and where we are if we're above or below prints. So what we wind up doing here when we're looking for opportunities is I have a default share size here of 400,000 over 5 trading days, minimum price of $5, and the minimum average volume of 1 million. So out of the 10,000 stocks that we're tracking right now, there's 241 trade opportunities. We have the ability to filter longs, shorts, or neutral. And what this actually means now is if we look at AAL, American Airlines, the price is $11.50 and it's green and it's up. There's an up arrow, which means that it's above all of the prints cumulative over 400,000 in the last 5 trading days. So right now there was one for 487,000. At 10:70 on October 3rd, one trade. Okay, so this one here is between, so it's in between prints. This is 226.31. It's changing every couple seconds, and there's these trades here. 226.84 is the high and 224.75 is the low. So if we were looking at this, we would really want it to get over 227.50 maybe. Before we even look at the chart, because these trades that we're looking at, these big institutions, they're their positions. If we're looking at a trade, we'll want to see more of the prints integrated on the chart, because you have to remember that these institutions, they don't scalp. They're not in it for 5 minutes, or they're not in it for a day trade. They have large positions that can span months or years, and you'll see that when we start looking at the chart. So the other thing too is if I click on the seasonality tab here, this view for AAL, what this shows us is the green is the average. Usually it's 20 years, but this is 2013 to 2024. That's what we have the, the date for. So this is 11 years of seasonality. And what we can see here is over the course of the year, January to December, it looks like It's kind of on a downward trend, and then starting in October is when airline seasonality tends to kick off. Now, if you were trading this at any other point, because you know it's the beginning of October, it's almost yeah, it's the fourth of October right now. We would expect historically it doesn't tell us what the future result might be, but we have trades coming in on AAL. And seasonally, it starts to pick up from October into Christmas, and that kind of makes sense because we have the Canadian Thanksgiving coming up in a week, and then we have the U.S. Thanksgiving, and then we have Christmas and all of that. And so this from October all the way through till February here—that might be a great trade for AAL. So now we know that AAL is above the prints. And the seasonality is starting. So remember, when we started this conversation, we had nothing to trade. So now, in the first couple minutes of this video, found something that we might want to look at. Okay, so the third thing I wanted to point out is a short would be if we're below the aggregate trades here. So this is bonds AGG. We're below 99.95. It's down on the day, and if we look at this. The range is 101.33 to 101.03, and we're at 99. So if we were to look for a short position on AGG, we would have to technically look at the chart and the other prints around it. So what I'm going to do, because if we're looking for longs or shorts, I want to kind of exclude the neutrals. So at the moment, you see there's 241 opportunities that would be in the list. What I can do Is I can untick neutral. Now there's 195 opportunities, and if I'm looking to go long, remember this number 195. If I untick shorts, there's 112. So oh, it went up 115. So 115 out of 195. Technically, there's more longs than there are shorts. So maybe the market is a little bit bullish. So we have 114 here. What you can do as well is if we increased the parameter for the average volume, say to 3 million, that gets us down to 78. Now the reason why we do that is if a stock has a lot of volume every day, it's more liquid, and that means potentially the options might be better if you're doing that for liquidity. But it also gives us a better selection. of trades. So, and we recognize some of these stocks a little bit more than the other ones now that they're excluded. And we see AAL, Apache, which is oil, AstraZeneca, BABA, Bank of America. Um, that's, uh, healthcare, Bristol-Myers, Squibb, Citibank. And I think earnings are coming up soon on this. You see the earnings dates. So American Airlines, their earnings is October 17th. So this could potentially be an earnings trade, the rush into seasonality and things like that. So if we were looking for a long, then what we could do is if we click AAL here, it's going to take us to the print lookup. And what this shows us by default, we have our seasonality chart. That's here, but this is showing us by default the last 10 biggest trades in the year. So we can see when this loads, it gives us 1 year of data, and by default it's 50,000 shares and up, but it's taking the largest trades. So if we look at the chart here, we can see these ones, July 25th, 1 million, 1 million, 1.4 in June. And as we scroll back here, oh, just going to get this with the mouse, scroll back and move the chart. We can see by going back here that there were all of these trades up here, 1568, 1550, and that was a massive resistance. So it looks like they were selling there. Every time it came up to these print levels, there was either more prints or rejected off of them because This one back here from March, which is this big red candle here, we rejected it again. We came back, there were more trades, got up and then selling again. So you might think when we get these trades that it's buying when it crosses, but your prints are also support and resistance lines. And when we came back and closed below this, there's your shorting opportunity. And it looks like they've continued to sell. So if we come back on the chart, we've come back here, and now what I would say is we have to close above this print here, this 1210. We're at 1150, so if we close above this 1210, we might have a nice pocket to $13, $14. Now the benefit of doing this sort of thing If you, you can catch the options chain off guard, because if there's a big move, because there's the dark pool, because there's the institutional interest, if you catch the options chain off guard, then you can ha— you can capitalize on a massive move. You don't wanna be on the other side of the institution. You know, traders have tried that with GameStop, AMC. You know, some people have made some money, but a lot of people lose. And if we start looking at those sort of stocks, you'll see why. So down here I can change my setting to say 400,000, and this is market hours. And notice the chart didn't change, right? Because it's still the top 10 trades. Now here we see that there were some yesterday on the 3rd and then September 17th. So these are large ones. So there's 11/10. Here, and if I click on it, it's automatically added to the chart. The new one from yesterday was right there, 1070. So you see these ones. So now we're in a bit of a consolidation. So what we really have to do is close below 1050 to go short, maybe close below these, or we've got a Close above 1220 or 1250, and that gives us if we're going long, that gives us up to 14, and if we're going short, it gets us down here somewhere. So we could actually look to see what the larger trades are below us. So we could sort by price even here, and this is August at 1002 is 600,000. So I'm going to click this one, and we can see that 1002 is down here. Maybe with our trade setup, there might be some room there, but then there's a big one, and then we can come back down to support way down here, $9 on the short side. So really, when we're trading, we don't have a bias, right? And then, and when we're trading the dark pool, we don't care too much about the news because the prints always come first. You can't say that these big institutions that are spending billions of dollars on these trades don't know what's going on. I don't have to do a lot of research. I mean, it is really good to be good at technical analysis and know things about the market. 80% of trading is all psychological. But this is fantastic because we can, we can have a trading plan right now that if we close strong above 1210, we've got a trade to 14. If we close But below 10, we've got to trade down to 9 or lower, right? And we can see these other ones, 10.02, 10.04, 10.05, right? And then if we scroll down, there's some down here, 10.31, 10.50, right? So as we were talking, it's like, well, let's close below 10 then. And so now we wait. That's the patience part of it. Okay. And then If we wanted to see the individual trades, we can see that over here on the left-hand side. Now, for anybody that's interested in looking at these individual trades, some of them have conditions. So you see here there's something that says intermarket sweep trade through exempt. Some of the trades don't have conditions, but during the day you can see this sort of stuff. And if you want to know what these trade types actually mean, then what we can do I'm gonna open a new tab and I'm gonna click Home. And if we go to our Help section and we go down to the Trade Types, we can go down and look at something called Intermarket Sweep. And this gives us some layman's terms. It gives us a layman's explanation of what the trade actually is. An Intermarket Sweep order is a type of order that allows a trader to sweep multiple price levels across different exchanges simultaneously, Bypassing the usual price protection mechanism. Also, it tells us when does this occur? It occurs when an investor or trader needs to execute a large order quickly across multiple exchanges to take advantage of arbitrage opportunities or to complete large trades at the best available prices. This also explains the impact on trading data. It updates the volume, high, low, and close. And the other thing that it does is can lead to rapid price movements and increasing trading volume because they're going to all of these exchanges to get a price. That means it's aggressive. This is why it matters. And then there's an example. A trader wants to buy 10,000 shares of a stock using an intermarket sweep. They simultaneously execute against the best ask prices across multiple exchanges, even if it means trading through the national best bid offer on the same exchange. And then it tells you more information about it. So you can read up on all of the different trade types there. So I thought that might be interesting. So now we're back to AAL. So now since we didn't have anything to trade, we now have a trading plan for AAL. We'll look at the options, whether you want to buy stock, you want to do covered calls, you want to do something else. There's a plan there. There's a strategy that you can work into your trading plan. If we go back to the opportunity section, Let's look for something else. Now, me personally, I wouldn't take more than one airline. If I was going short on airlines, I would find all of the airlines and pick the weakest one that had prints. If you're going long, you want to pick the strongest stock. Okay, let's go look at Baba. This one likes to move. What's it doing? Okay, so its price—it's above the prints and it's up on the day. I wanted to mention I don't normally consider the longs, even though if we're above the print but down on the day, we don't want to do that. Me personally. But here, if we're up on the day and above the prints, that's great. So look at this one. There was a 1 million at 106.34, and we're at 114. That doesn't mean though, even though we're $8 above the print, that doesn't mean that the trade is missed because a million shares can really move the stock. So if we're interested in a long on BABA, let's click BABA and notice here that every time you click one, A new tab opens so you don't lose the work that you've done. Bob's seasonality here, it looks to go up in October a little bit, and then it peaks in November and then kind of does a mushroom top and comes down a bit. So we do have potentially a little bit of bullish seasonality here. And if we look at the chart, here's our print at 106.34, and that is one of the largest in the last year. You can see that here because it's selected by default. Now notice here all of these other trades back. There's April, March, June, April again, June, July, and you can see all of the consolidation around this print level. So when you see things like this and they come back and then there's more and it consolidates. Then when— if they keep printing, then you're not getting into the trade until the trade is actually over and it'll start to actually move. So when we're looking at this, we're looking for a good opportunity when it actually broke above the print with volume to actually get into the trade. So I'm going to click on price and see what we have for the highest price. So the lowest was 68. And the highest was 106.34 for these trades, and that's the one that's actually on there, and that's at 400,000. If we look to the left, we can see that today there was 113,000, and yesterday there was 60,000, which isn't really a lot, but 114.50. And let's get this chart back over to the, to the right side. So 114.50, there's 113,000. So when we're looking at this, This would be our support level, but if we break below this, we might have a retracement back to maybe 100 or fill some gaps down to 90 or back down to these prints. So really what we would say is maybe 116.25, 117.50, maybe go long, something like that, because we're at 114.53. And then if we're going short, it might be below 105 with a target to fill the gap. Down here, down under 100. So there's another trading plan. The other thing I wanted to show you too is if I— if we click, um, hide watchlist. So you have your watchlist here, you can click on your individual tickers, but if we choose hide watchlist, so now you have the whole chart to yourself that you can look and go back and see what all these other trades are. And then if you want to keep adding ones to it, We'll add that one, the 476, 696. And this is one thing, it seems counterintuitive. Most of the really good traders, what they do is when something is going in their direction, they add to their position. And it looks like that's what they're doing here. Most traders are always fearful. They're scared to lose money and they'll stay in a losing trade because there's always hope that it'll, that it'll come back. When the trade's going in your direction, It actually is helpful to add to your position. It's the inverse of human nature. We're trying to avoid pain. That's why we hang on to losing trades. And then if you're in a losing trade and then it starts going in your direction, in order to relieve the pain, you get out at breakeven or a couple pennies profit. That's why a lot of traders lose. If you have a trading plan and you stick to it, And it's profitable, then don't change it. Add to your winners and cut your losers short. And don't be too greedy because that'll get you too. The market is a very humbling beast. So here we would need a technical entry like we had discussed. So now we have two that we could possibly trade here. So let's go back and see. We need to find a short as well. So I'm going to click shorts. And then get rid of a long. And usually what we do is if we're going long on something, it's good to find a short because if the market tanks for any reason overnight, then if you were short something, then your short should make up for the loss of your long losing. So when we look at the shorts here, we're looking for things that are down on the day here and below the prints. So AGG is bonds. That one's kind of slow. If you were going to trade bonds, you'd want to do like TLT or something, but it— let's go and see what we can find here. Okay. Microsoft here. Let's look at that one. It's at $416. It's down a little bit on the day. Uh, here are our trades. 4, 4,640 was $730,000 and 4,675 was half a million. And that was today. That might be a little sketchy because we don't want to enter on the day of a print. They're probably not finished with that. And I'll give you an example. Let's have a look. Let's have a look and see. First, we're going to check the seasonality on Microsoft and Microsoft starting in October. It actually seems to move up. Although this isn't indicative of future returns, it is 20 years of data though. So let's see what Microsoft is actually doing and see if it is a good short. So here it's a bit of a mess and we can see that, right? Because out of the largest trades in the year, we're stuck in a whole bunch of them. Now we can have a trading plan on this though, because if we break above, say, $4.20, we might have a trade to $4.27. Really, we want this to turn around and come up and break above this, and then we might have a trade coming up here. Now you'd have to do some more technical analysis and see if, uh, if this is a reasonable target up to $4.40. And maybe up to here, 460. We can add these extra trades on here. Here's the 416.75. Just doesn't really help us. And if we look what the highest and lowest is here, 331 is the lowest, 449.90 is the highest. So let's put that one on there, 900,000. And that's back in June. So there's a good target, right? $449.90. So that's $450. And so I would say $448.75, something like that to get out. So here's our trading plan on Microsoft. If we're bullish above $428.50, something like that, get above up to $449. Or if we're bearish below, we got to break below these prints here to go short, which would be probably about 400 all the way down to 380. Okay, so we have that sort of thing there. So now we have 3 to trade. We could put these on a watch list, and if I go to watch list here, I'm going to make a new one. I'm gonna click on my watchlist here, and I'm gonna choose Add New Watchlist. I'm gonna put this Watching New, and for the sake of this, I'm gonna give us, say, 3 bullish targets, 3 bearish targets, 10 dark pool prints, and 5 trading days over 400,000, and I'm gonna choose Save. So here for our ticker, what was the first one we were looking at is AAL, Microsoft, and BABA. So let's add our trading plan to our watchlist. So as we discussed, AAL, we're going to be bullish above $12.20. And then we're going to have a target of 13, 13.50, and 13.80. And then we're going to be bearish below 10, and then we'll go 9.50 and 9. Now this gives us the dark pool trades already. Here, so 1070 is a recent one, 487,000 at 1070, and this one here is 410,000 at 1089. So these dark pool prints are already preset based on the criteria that we chose when we created the watchlist. So now what will happen is if AAL here at 1150 breaks above 1220, Then this will turn green, and we know that that's our bullish above targets. We want it to close strong, and then we can get in. So we have 80-cent move for our first section of the trade, and then if we take some profit, then we also have $1.30 to take some more profit, and then, then the rest up to $1.60 there if we're scaling out of our position. And if we're bearish below 10, we have a 50 cent here and another 50 cent. So we'll take some profit at at 9.50 and some more. We'll get out at $9. So for Microsoft, we were bullish above 428.50, and it seems like a long way away because we're at 415.65. But there are all those all of those crazy prints in the way. So then we'll do. As a target, 430, 435, and 440. And then we'll be bearish below 412 with a target of 410, 407.50, and 405 is our target there. Now if we're looking at BABA, We're bullish above 116.25, target of 117.50, and we're bearish below 105 with a target of 100. So now we can monitor this watchlist, and then when we're looking at any print lookup at all, we can click on our watchlist here. And there's our new one. You can choose different watchlists. I've got a couple different ones here that I'm watching, but if I want to switch between any of them and see what's going on, we're all set. So we're right here on Microsoft, but we could switch to BABA, you could switch to AAL, and then you can just manage your watchlist. So that's a quick way of getting started with Mobi, only looking at 3 different features, and there's a whole bunch of them. And there's lots to dive into, see how stocks behave, look historically, do some research. So in this video, we've gone from having nothing to trade to finding 3 great trade setups using only a couple features of Mobi so far. So the sky's the limit, and the whole point of Mobi is for you to find the most profitable trades as quickly as possible so you can get back to doing the things that matter most to you. I really hope you enjoyed this video, so keep your eye out for more. Like and subscribe on YouTube. Sign up for our newsletter and you'll get more content like this all the time. All right, we'll see you in the next video.
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