May 9th, 2024 Ultra Wealth

Thursday.

So pretty easy for today, our hour. And my ultimate objective is review discussion on Monday.

The.

My cat, he'll have another discussion this Monday, answer any questions that you beautiful humans have about it, and then review the markets and review some trades you guys are in.

Awesome.

Yeah, pretty easy. So what?

What?

I. I know you had some ideas percolating, Eric. I know you did. What were some of those ideas?

Well, I. I wanted to kind of See, there's a lot of different guys that are always pitching syndications to me. This multifamily thing and this, you know, other storage deal and nursing homes and all this stuff. I have never done any of that just because I do my own real estate thing. But I can see the benefit of it being completely passive. Right. With somebody who's done it before, who, who's, you know, real confident and has a good track record. So it. And the tax benefits are pretty amazing. So that's what's turning in my head now.

Do you have any good tax benefits with what you do right now with the real estate flips?

Just depreciation on long term holds. Okay. That's it.

Yeah, gotcha. So what I was thinking for you, Eric, again, just, just opinion was. And correct me if I'm wrong, you probably have a spreadsheet.

Yep.

You probably have a formula. Probably got. You probably got like a standard operating procedure for your flips on your houses. Mm. Take your house, multiply it by 10. I don't think anything would change.

Right.

You still have an apartment complex. Let's say it has 30 units and it's. It's for sale for 3 million. All you need to do is just plug in the numbers, the same numbers. And your percentages. Percentages don't change because you're after a percent return for your flips. Right. And so you're basing everything on a percent. It's going to be the exact same thing for an apartment complex. You're gonna have to reach out to 50 complexes. One of them will say, maybe you talk with that one person. And then you have to factor in fixing the cabinets and all the rooms, fixing the AC units, fixing the plumbing, adding coffee filters, whatever, and you come up with that line item for the overall repairs.

Yeah.

You plug it into your spreadsheet and you really stress test the deal. How much is the insurance, how much is the rent, how much can I increase the rent by, blah, blah, blah, so on and so forth, and just slowly get an awareness slash understanding of what everything is. And you know, it's kind of B. Right.

Yeah. Yep. So tell me what you've done with syndications.

Absolutely. So I've done three things. One, I have raised money for other people's deals.

That.

That one's the easiest. That one is. I know. Like Chad. Trying to remember if you met Chad. I don't think he met Chad. So Chad lives here in Nashville, Tennessee. Chad King is one of my best friends. He has a humongous portfolio. He is extremely active in purchasing deals. And every now and then, he'll bring me a slam dunk. He's like, hey, man, this is a slam dunk. I need $500,000. I go, okay, cool. And so I'll go and talk to people like you, Joe, Nancy, a few friends, Jason, blah, blah, blah, blah. And I'm starting messaging people, and, you know, 5,000. 5,500. Got 500. They take their money, they get in there, and I get. I get some of their LP interest. Meaning they all get their returns, they all get their interest, and then they send me a check once everything's finished, every month for 200 until the deal is closed. And they. And that's my arrangement with the. The gp. Right. The general part. And that's the part that you would crush. You would dominate, because you already have 10, 15 investors that have worked with you in the past that have already put in 50 to 100,000. Yeah. Or more. And so if you talk to a Mike or a Chad King or someone who has track record, they have everything spelled out. They know all the numbers. You know all the numbers. Hey, show me the spreadsheet. Show me why this deal works. Walk me through it. And then you take some of that capital and you apply that capital, you apply your friend's capital to them, and you just work out what's the arrangement for you? An example for you, Eric, is you could just say, hey, give me some of the depreciation. That's all I want. I just want the. I want the assigning of the depreciation for this building. And so you get whatever.

Yeah.

$300,000 of tax appreciation for free.

That's cool.

So he who has the gold makes the rules. So if you're bringing the money to the table, you can ask for what you want. Sometimes you'll get it, sometimes you won't. Yep, that's one. Number two is I have raised money on a deal that I am a GP for, but I'm a smaller gp, and the other person. Sorry, the other person's done all the work.

Yeah.

So the number one arrangement that I can think of right now is I have a wedding venue in North Carolina called the Lumen House. And it's. It was a ground, ground up, build out, nothing there. We buy the land, we put a big, beautiful building on it, and we sell wedding venues. And the girl who is the other gp, so it's me and her. She is. She has her masters in real estate finance. She has. She was working for. I forget which company was overseeing $500 million of assets under management, and she was allocating that money to other deals across the country. So she knows her stuff. This is one of her dreams. She's all in on it. It's on her property. It's right next to her house. It was, you know, so we got together, raised almost $2 million and took that 2 million, went to the bank, got a small business loan. That was the down payment. And then poof. And now we're, you know, concrete's going in.

We're.

We're getting after it. Like, it's. It's building right now, so it's awesome.

Yeah.

And then number three, which is. You're very familiar with, just. I'm part G. It's 50. 50. I own half. My other partner owns half. I know nothing about real estate, as you know. Like, dude, I can fix the door. Eric, if you said, here's a thousand dollars, Newsom, fix the door to your house, I. I would pay someone and take the spread. Like, I wouldn't know. No idea, dude. So 50, 50. I bring the money, they bring the experience, and then we go buy a project, a building, a property, and then we just. They do all the work, and then we split the money.

Okay. Yeah, cool.

Those are the three that I've done.

Okay, nice.

Yeah. And in total, man, I've done about $80 million of capital for those three. Those three types of endeavors.

Okay. That's pretty cool. That's really amazing.

Yeah.

Yeah.

So I think for you, I mean, really an Aplex or, you know, a 16 unit, 32 unit.

And.

But you already have a construction crew, you know, people you could have. You could have someone come in. Usually if you do a deal, it's your first deal. Part of your GP would be someone who's experienced, who's done it before, who have, let's just say, Mike Fritz, as example. You say, hey, Mike, can you and your fund come in and be 30% of the general partner? So the 100% of the general partner only owns 35% of the deal?

Yeah.

And that you say, can you. Can you own 30% of that 30%, they say yes or no, and then they come to the table and you now have a general partner, and then they help you go raise capital for it. They give you the forms to give you the documents, they tell you what to say. You guys have webinar together, you make phone calls, you know, you bring in money, and then you go to the bank and the bank sees all the money. It sees the deposit, it sees who's on your general partner. Because that's really important to banks lend to, you know, to you if it's your very first time.

Right.

Yeah.

Okay.

Yeah, you can do that this year. I'm serious, man.

Yeah, yeah. We just flipped the four plex and it's done now. We're starting to show it, so. But we did all that in house. That was just easy peasy, bro.

It's the same thing, Eric, just bigger.

Yep. Yeah.

More doors.

Yep. Have you been just the passive guy before? I mean, you did. You never have. You've always been raising money GP or something.

Some. I. I have some type of skin in the game to some degree.

Yeah.

Skin in the game for me is reputation. Like, that's a big one. Right. Like, if I bring other people into a deal and it, you know, falls flat on his face, I'd rather lose money than reputation. Really hard to get back.

Yeah.

But saying that to say, a limited partner investment, my opinion, freaking blows. Dude. They're horrible. Like 99 of limited partner deals. Like, you're getting 8%, 9% a year.

Yeah.

Five years, you'll get a 20% return.

Yep. So this is why you do this for the tax write off. But you're, you're not going after the passive 8% because you can just do that on your PC. Okay.

I would never invest as an LP for the 8%.

Yeah. Right.

I would just do it.

Yeah.

I would do it for the taxes.

Yeah. Just for the taxes. And when you don't bring any money to the table, you can, you can bring other people's money to the table.

Right, Right.

Yeah. Awesome.

Yeah. So a lot of times what you could do also is you can say, hey, don't pay me any percent. I don't want any return. Here's a hundred thousand dollars. Give me the most taxes that you can give me. I want, I want 8,90,000, 95,000. A hundred thousand dollars off of taxes. And then only pay me when you sell the property.

Yeah. On the profit. Yeah.

I've only had one of those work where the guy was like, yeah, but you know, I usually ask if my tax bill was outrageous.

Okay.

A little awful last year.

Not good.

Yeah, it wasn't good, Joe. I'm really upset. This is. Anyway, I didn't buy enough multifamily, apparently.

So. This is cool.

Yep.

But it.

But all of us have access to it. That's the thing. There's no. A lot of people get scared of the SEC and taxes. It's like, that's not. The SEC is not going to come after you. I mean, you're doing at such a small level, putting yourself out there. I mean, you do your first property, it's going to be less than 5 million. Reaching out to your buddies. I'm just trying to invest with you. Yep. So, yeah, what were your main questions about the class, if any, Joe, that Mike went over.

Yeah. And I didn't have a lot. Just. I know it's a little bit different. Canada versus us. So just making some notes. Yeah, sorry, I gotta call it. Go to grab here. Hold on.

Okay. You're good. Love your shirt.

Thanks.

I was just wearing mine. I had to. I was sweating. I had to change.

Well, cool.

Awesome.

Eric.

I mean, I'm glad for it, man. Keep me posted. But yeah, if you can do a four bucks, you can do a motel, you can do.

That's.

That's easy for you, brother.

Yeah, I think I can find the money because I have. We already have a few million bucks of people that are in our flipping business that we. That invest with us as private money lenders and we pay them 8% per deal and so that would be easy to convert over. But frankly, right now we need them in our flipping business. That's where their capital is. But sometimes they come with a little money and then they see it work and then they say, oh, by the way. Yeah, so we have had that happen a couple times and we didn't realize how deep their pockets were.

So never do. Right, right.

Yeah.

Yeah. That's a beautiful thing. Absolutely. Like, it's just one of those, like, hey, here's the way it is, here's how it's structured. You know, if you. If you guys want some, you know, exposure into multifamily, let me know. We're looking at doing this and so on and so forth. So. Yeah.

Yeah. Okay.

Yeah.

Cool.

Yeah, Very cool. Very, very cool. Congrats on Apple, big guy. There was no one else more excited for Apple gapping up than me, I promise. I was maybe Tim Cook, but I was pretty pumped. So walk me through what you think it's going to do. From here.

And what.

And Eric, why it did what it did on the gap? Like walk me through the gap sentiment.

Well, the gap sentiment, although it dropped immediately that first day because all the people that bought in the last two months took profit Y. And I saw that post that you sent out and it was like the most predictable trade. Yeah. And it. And I, I didn't understand it, that it was going to come down and bounce off the moving averages and rock it back up. But did you play that when it came down and hit those.

Yep.

Yeah, that. You know what, I'm. I'm still wrapping my head around how the day trade thing works. As far as you know, I need to watch your how I analyze pre market video about five more times because I have been studying diligently the last two weeks to predict what stocks are going to do when they open that first five minutes. And I did a study this morning and I went to bar charts and I wrote down all the stocks that gapped up. And then I went to Finviz and I wrote down if they were short, if they had a high short float. And many of them acted just the way I thought, but others did not. And I want to know why. It. Because there could be easy money if a guy could figure that out in the first three minutes of the day. But my question to you, is it too, is it too unpredictable and you can't know? That's why nobody plays it? Or predictable it. You can't pick predict it, huh?

No, it's very predictable.

Oh, okay. What about Sinclair? I watched that. I saw the 9% short float and I was like, holy cow, this is an opportunity. I didn't do it. But I watched it. And it would have been a moneymaker. It went rocketed right up and rocketed right down. I know why. Well, I think I know why. But some of them didn't do it. Can you teach me how to do that?

Well, keep in mind, some will, some won't. Right. Nothing works every time. So that's one of the things you'd be aware of. But let's start with first and foremost, the basic January analysis. Let's go through daily, weekly, monthly, 210, 20, 50. Okay, so on this gap today, were we above the long term moving averages?

Yeah.

All right, let's go to the weekly chart.

Boom.

Come on, dude. Come on, Eric. Come on, dude. I mean this is. This is cakewalk, right? That is amazing. Isn't that amazing?

Yeah.

So there's the, there's flip the position switch right there, right there's. The resistance where you're like, okay, cool. Like that's, you know, go short sell. So that's where you're going to sell your position and then you're going to start taking your short trade. Okay. Then the monthly. Nothing on the monthly. All right, now that we're on the month, we're going to go to the 10, 20, 50. So we'll zoom in. It's like, okay, cool. We can also see that there was a 20 EMA on a monthly here.

Yep. Weekly.

Nothing. And we already went to the daily. So there's nothing on the daily. All right, so we have two moving averages. We got the 100 on the weekly and the monthly. That's step one. Step two. Now we just analyze just the candles because again, that process took what, two minutes?

Right.

All right, now we look at the gap. You would have known this more this morning, this opening up here.

Huh? I did it. I knew at 8 o'. Clock.

Yeah, perfect. Yep. So as it was opening, you get to go, okay, who's trapped and how many people? And you'll notice resistance support, double bottom. Yeah, exactly, double bottom.

There's neckline, all that stuff.

But look how many people it's gapping above. Right? It's gapping above three months worth of people. So there's a lot of people trapped. And then last but not least, what type of gap is it exactly? Retest, gap, retest gap. Which means you're going to get very, very often, very often a nice little pump and then the retest. And this type of pattern can happen on any time frame. It can happen on a one minute chart, three minute chart, whatever. But really, as we zoom in, like this little part right here would just be a rest. So you're looking for a one or two or three minute chart, some type of small candle, indecision candle, consolidation candle, something of that nature. So now if I pop into. We'll start with the three minute chart, right. The very, very first candle that opened up. Right. It just. You open. Boom. Just crushes. Okay, so like, all right, could I have caught that two minute? No, not really. And then you go down to the one minute. You may, you may like this answer a lot. But the very, very first one minute candle is just this huge candle bang out the door, crushed higher, which means what? And it's me as the best day trader you'll ever meet, telling you there is zero chance I'm catching that trade. Zero.

Because you not have bought it at open or never.

Never buy anything at open ever.

Okay.

I Never just get in and open and never do that. I'm always planning ahead of time. So the open can do it. I can set my orders in, like I could try to buy it here or do whatever, but I don't just like market get in. This moved bullish too fast for me to get in.

But.

Using the knowledge that it's a retest gap and using the knowledge that you had which two moving averages that were going to act as a resistance.

The whatever. The weekly.

Yeah, Weekly. Hundred or 21. Exactly. Having that knowledge that it's a retest gap, did you have big, big, big resistance right in the way. If you missed the, the long.

Could.

You have gone short at those resistance levels?

Oh, yeah.

And that's what I would have done.

Okay. Yeah. Cool.

That's what I have to think about with retest gaps because, yeah, I think they should retest right away. Typically not move up and then retest later or whatever.

Yeah, no, that's a good realization. In fact, Joe, here's the cool part. And you, you can write this down. This is a high probability. If it doesn't retest immediately, the likelihood that it retests later in the afternoon is huge. It's like 75%. So if you're like, wow, this is a retest gap. All right, cool. Waiting for the retest. And it's just like.

Right.

And there's. That's when I'm going and looking at other moving averages on other time frames, asking myself, where could this thing bounce?

Can you go back to that weekly?

Yep.

That's weird. My Weekly is different. 1504. Mine's at 15 bucks.

Do you have adj turned on adjusted for dividends? Yes.

You do.

Yeah, that's exactly what it is.

Yep. Okay, got it.

Which isn't a bad thing. I didn't think it to use that, but I will and can click that button every now and then just, you know, so same thing. Right. Is like that would have been. If you draw a line here. And again, I could have showed you how I would have played this. Like if I have a line here and I go back to the three minute chart. The very, very, very, very, very first three minute chart, Eric. I mean, you blow past that, adjust dividends 100 right. On the weekly. Or you fly by it up here, you start interacting with 100 on the. On the weekly. Non adjusted for dividends and the 20 on the monthly. But Eric, guess what signal you get. Below the 10 EMA. So how nice would it have been to go, okay, cool, short here yeah. Stop loss up here. And where would your target have been? And your target could have just been the hundred on the adjusted for dividends chart. On the weekly. You did that work ahead of time. You have literally a trade that will print you money because you're just so confident now. I didn't take this trade. This is all. I'm just analyzing. But this is so simple. At that point, you know exactly what to do.

Yeah. Okay. Yep. I need to refine those skills because this is really. Like you said, it prints money and it's fun.

Yeah. Yep. Absolutely, man. So that's. That's Sinclair. Okay, so let's have Joe walk us through if you have the Internet for. If not. I'll make Eric good.

Yeah. If you could get Eric to do it.

All right.

My Internet has been shaky. It's been wavering. But I've also got a bit of work, unfortunately, to try and be that time. So sorry.

Let me get you out of that job one day, Joe.

Yeah, I know. Sooner rather than later.

Eric, do. Do a screen share and walk me through the day trade. Like do what I just did on ticker symbol app.

Okay. I'm gonna plug my mouse in because I'm a mouse guy. I don't know how you're such a master at the trackpad. Maybe. Weird. Millions of hours on the trackpad.

I think. So I. I'm actually not good on a mouse at all.

Okay.

And use it.

All right. Screen share. Where is that button? I gotta hit this one first. Where's the screen share button? There it is right there. Open system preferences to. I'm g. To get it. The zoom may not be able to record the contents of your screen until it is quit. Quit and reopen. I'm going to leave the meeting and jump back in.

Yep. Too many technical issues.

Okay.

Here he is.

I'm back.

Beautiful.

Okay. Can you see my screen?

Yep.

App. App.

Nope. Can't see your screen yet. It almost did. I think. I think you didn't. It showed the preview and then it went away.

How's that?

There we go. Yep. So ticker symbol a. Now also while you're doing this. I did not do this trade. This is just. But when my buddies did do this trade. So he made money with us. Yeah. Walk me through what's. Go through the whole process for me. Okay.

So the first thing is. Is we have a bullish gap and go. Which is beautiful on earnings. And wow. 1.1.05 billion in revenue. I've learned this from you the last week. You just Go back and see if it's been increasing. And it has three quarters, a couple quarters in a row. All right, so we're way above the averages here. And we are. I'm just going to go to monthly here and see. So this is a stock that is newer and it's way above all the averages on the monthly because there aren't any long term ones. It's above all averages. It's above every single average there is.

Beautiful. So what direction should we be playing this one?

Bullish. Okay.

All right. And what time frame are you going to trade it on?

I am going to draw a couple lines here. I'm going to look at, see what it did. Kind of pre market stuff. So there was a high of two days ago. Then it had a bearish day and then it shot up at earnings and rock and rolled in the morning and it chopped around massively right at the open. And then since we know it was a gap and go, we could look for the first 10 EMA candle. And there's two of them above the 10 right here.

There's my dude. And using all the moving averages on your screen, every single one of them, how would you have played it and.

Why would have played it long? Could have put this below the low of the day and you could stretch this out to wherever you were comfortable. Or a 1.2, Although it never hit 1.2.

That's a big stop for that price of share, isn't it?

Yeah, just something to think about. Right, so that'll be, that'll be something that you'll see more and more as you kind of practice it. Because this industry is 85. Your stop is 81. So that's like four dollar stop on an $80 stock.

Oh, you would have gone maybe right here.

Yeah, yeah, I would have done something probably maybe a little bit lower than that, but okay. And yeah, right.

Massive one here. So there's a lot of buyers in here. So that kind of gives you the indication. Yep.

And that look at how many times it bottomed out.

1, 2, 3 and then a higher one. Okay, so that's how you can get your 1.2 out of there. Yeah.

Oh yeah. You'd definitely hit 1.2 on that trade. Again, Joe's absolutely right. It's just, just visualizing and always remembering how big is the stop relative to the stock price. Like if it was an Nvidia, you know, $4 is great, but it's a, you know, random $8 company. This also already moved $11, right?

Yeah.

You know Then you're asking it to move another $4. It's like, it's just a lot.

So a couple bucks. Yeah. There you go. That's beautiful.

But plus, if you're looking at that particular perspective, you have a stop loss that's below four of the five moving averages that you have on the screen.

Yeah. Yep. Yeah, that's pretty cool. I did this one today.

Oh, nice. Okay. A fade on Roblox. So why'd you fade Roadblocks today other than the obvious?

Well, your gap and go right here, right?

Nope.

And no, I mean. That's not why.

So that, that obvious thing I was telling you about. Yeah. Go back to the daily chart. So this is. Here you go right here. This the good and the.

So this is homework I did like way back and it had to do with this stuff right here. And I left it on there in case I wanted to go back and review it.

Got it.

But here's some homework we did a long time ago.

Yeah, I love it. So what was cool is if you go back to the daily chart, the candle yesterday. Walk me through the candle that, that Roblox formed yesterday.

Well, it has a shaved bottom or one thing. Yeah.

Okay, that's, that's valuable. That's important to know. Shave, bottom, what else?

It. It went. It took out these two guys. Yep. So everybody here is nervous and they. Do you think they sold after hours?

Oh, yeah, definitely.

Okay.

A lot, a lot of people did, but most specifically. Right. Really, really nice, strong bear candle. The resistance. And then we gap down. Now this gap down, how many bears were profitable?

A ton of them.

All of them.

All of them.

Yeah.

There you go.

That's right, all of them.

Not only, not only the one from yesterday, but literally any bear for the last seven months is probably okay.

Yeah. So they have to buy to cover.

You gotta buy the COVID to be profitable. And even if you don't know everyone's profitable, this guy right here is definitely profitable. So that bear down, he's certainly profitable. And roblox is down 20. Now if you go back to the weekly or monthly chart that you were at a moment ago, you'll also kind of notice, zoom out just a little bit. That we've been down here before kind of. And we've kind of balanced.

Yeah. So like I, Yeah, I saw all this. Right. And that's why I set my stop loss right there. Yep.

Love that. So there's some support there. And then. Yeah, beautiful. Now go into a three minute chart because you did nail the analysis. Very, very Proud of you, awesome job. But imagine.

Yep.

Zoom in, zoom in, zoom in, zoom in. Imagine if you were like, hey, I want to do this as a day trade, and I don't really, really, really want to hold it for a long period of time. I'm gonna place my stop down here and I'm gonna do a thousand shares.

Yep.

So that if I'm wrong and it goes down, I lose, you know, 30 to 28.50. It's a dollar and a half on a thousand shares. That's $1,500, right, Eric?

Yep.

But then it bounced a dollar fifty, giving you the ability to make that. And then you would have taken the stop loss and as you know, just move the stop loss. Boom, boom, boom, boom. So that you're less and less and less and then you cash out that trade. Or, or what else could you do with a thousand shares of Roblox on a stock that you're profitable on?

Make a covered call, get in.

Yeah, exactly. Get into a covered call.

A collar.

Yeah, get into a collar, sell a call, buy a foot, protect your downside because you have instant equity. Because remember how I talk about the equity position? I think a lot of people forget that you can day trade a position to potentially get your equity started.

There you go. Yeah.

Because on this trade right here, again, if you started doing your covered calls here at that resistance, you would have an entire $50 of equity in the trade, actually almost of equity.

Yeah.

So then you can start doing covered calls up here and buying protective puts right around here. And you know you're going to lose very, very, very small. Worst case scenario, if, if you wanted to, nothing, you had to, but you could, you could definitely day trade to get and kind of boof, boof, beast up your equity a little bit.

Okay, so you would keep those shares longer term then. Depending on, on the term of the caller.

Exactly. You definitely could.

Yep. There's no 10 EMA candle in, in here. But you would just do it regardless. Because how would you know this is the time to get in?

Well, I mean, realistically, the only way I would have known that and I again, I didn't take this trade. I did take this exact trade. I did buy some Roblox today. But my thought was once that very, very first candle came in, huge bull volume, we rotated higher. So you can see from pre market, that means we've gone from 27 to 32. So that's on a. That's a 20% move from there. So I did a pullback. Now, where do you think the pullback would happen? It would retest all that volume or the open of that big bull candle.

Okay.

I thought would have been if I was day trading. Let me try to get in at the. Using some of this pre market analysis and on a. On a pullback of the pre market level. So the way you played it, truly, Eric, believe it or not, it's perfect. And it's exactly how it played it. The only difference is just how I would have moved my stop. Sorry, where. Where I would have placed my stop when the trade was actually.

Yeah, yeah. You would have made a smaller stop.

Yeah. For a day trade.

Correct. Yep. Yeah, yep. Because I made my stop way down here by these guys because I thought this would be a long swing because this probably gonna fill this gap and who knows, you know, how long, but I don't. But I think it will. The end. By the end of the year for sure. Yeah.

Yeah. I'd say probably by the end of the year sense.

Yeah.

That's actually what I would say on that gap is this. It's not the strongest gap in the world, but I. I'd probably. I could make an argument that it'll happen before end of July, but definitely by the end of the year would be my expectation. And then I gotta go and research this. You know, this earnings like how they did.

Right. Here's another one I did that's not working out that good. I should have waited for a close above this candle, but it opened above that candle. So I thought, hey, it's going to go up. Everybody here is short and it'll have to go up. But it didn't.

Well, good. Try. One tiny problem with that particular trade, though. What is it?

Inside day.

Inside day. So it did not take out the high or did not take out the low.

Oh, it took out the close or took out the open, but not the. The full. Yep. Full scope. Okay. Yeah. All right. Okay.

Yeah, that's it. Like it was. It was a decent gap. And today is a good inside candle. And it still could go higher. And you might be correct. But you can see that today is an inside candle. I did have this exact trade set up. I was just waiting for it to take out the high of that hammer. Because that's how hammers. Right.

Yeah.

Get taken out. You just got in a little too early.

Okay. A little too low. Yep. All right. We'll see if it pops. I'm just gonna let it ride out my stop there if it turns around. But it. The earnings weren't spectacular.

No, they Weren't.

Yeah, And I don't know, I don't use Shopify, but it's got, it was up here a lot. Right. So you think it'll chop around for a while and fill this gap by the end of the year, or you think it's a down, downward trend. ABC somewhere in here, right?

Yeah, I think, I agree. I, I, I think that's, that, that makes the most sense to me. So this is an ABC or like 1, 2, 3, 4, and this is a three wave. We're going to go down to a five and trade down into here. Yeah, and we know that that's, that's obviously where it shouldn't take that out. Yeah, both of those are very possible. It was definitely a big, big, big gap. And you are correct. I think that's a great wave count. And this would be the ABC that we're having, like a weekly chart. And so it's just a big, you know, A, B, C. But even now you can, you can kind of start to see some components of a 1, 2, 3, 4, 5. And again, I think, I think right here, 100 on the weekly, 100 on the monthly. That's probably where we end up going to. And that's where I'm going to get, I'm going to get in pretty aggressively there if that happens.

Okay. What does a person do in my situation then? Just get out. I guess I could get out immediately. I could hopefully get into green and get out or. Yeah, yeah.

Wait for tomorrow. You got your stop in place. It's a great stop. If it goes below there, get out.

Right?

Just get out. Take a small loss. It'll be 1500 bucks, right. 500 times three. So take a small loss. Go. All right, cool. No big deal. Leave it alone. And then tomorrow, if it does get a good, good pump, I mean, you're going to be trapping two days worth of bears. And so then you just leave the trade alone.

If it, if it opens above the two wicks there.

Yes, definitely. If it does that. If it opens above, for sure.

But even if it gets above it.

Yeah, exactly. If it just gets above there later in the day, that would also be good.

Okay, cool.

Yeah. Yes, yes, yes. Beautiful. Anything else?

No, I don't want to take all the time.

Joe, you got, I appreciate it because.

Yes.

Now I actually forgot the meeting was a, was two hours earlier today. So that's why I'm a little discombobulated as well. Everything done, But I was wondering, like, about what you think about Mara for earnings today. What it might do.

Oh.

All right. Eric, pull up Mara and give us a. A walk through.

I did that trade this day right here. It was awesome. But I got a little chicken and I got out early when it started to slow down. That should be a lesson.

That's okay. You made money.

I did. I made money. I don't know how many shares I got. I. I made some good money, which was h. It was a happy day for me.

So.

All right, so we have earnings coming up here tonight.

Wow.

All right.

Okay. So we are stuck in the middle of a whole bunch of average. We have good compression. Look at this pennant happening here. It's building up. Okay. We're above everything on the weekly and the monthly. Okay. Could do a strangle, huh?

Yeah, absolutely. What else?

What.

What's your thoughts on if it gaps, what could it do?

Well, if it gaps up up above, just looking back here for volume, let's.

Say gaps here, what would your expectation be?

It's going to retest. Okay.

What if it gaps here? What would your expected expectation be?

It'll retest.

Okay. And do you know where you would buy it at if you were. If, let's say you want to day trade it.

If it's going to retest, I would short it.

Okay. And then if you make money shorting, then what would you do with it?

You could buy it again when it bounces off of this 100 nicely. Yep.

Because we got a big, nice double bottom in here so it gaps up. So that double bottom neckline, slash the 100 will be something pretty interesting there.

Yeah. So opens here. Yeah. If it opens up here, you could short it and then buy it right here. Yep. Okay.

I'm thinking probably Joe has a small gap down. Small gap down. Probably opens most likely. Again, just a guess, but probably opens here. So if it opens here, Eric, what would happen to the stock?

All these guys are going to sell. There's not a lot of shorts up here that are going to take profit.

And where were they?

These guys are all going to sell. Especially look at this volume right here. I would think it's going to drop, maybe bounce down to this.

Okay. Beautiful.

Is that right? Yep.

I totally agree. So short down into the 200. Then we get to see what it does as it gets to the 200. There's a bunch of support down there. Me and Joe will probably look to sell some puts down there again around 12, 11 or 10, late May, early June. And if it gaps below the 200, Joe, which is always possible, I don't think you know, don't think it will, but it could. If it opens below here, I'll probably wait a little bit a day or two to see what it does because that'll be a. That'll be a strong gap. Right. Trapping tons of people. There would be a resistance. Maybe it fails. So, yeah, if it opens below the 200, I'll be a little bit more hesitant to selling some puts on one.

Because it could do what Lulu did. It just keep going down. Yep.

Because it'd be a really good. Yeah, it be a good gap at that point.

Yeah. So I remember that what Lulu did and also what Hollow Alto did, and that was at your house when we sold those puts and that thing bounced right back up. Now, I've always wondered why. Because we sold the puts and then the same day, next day we bought them back.

Yeah. No, you're right. There's not an ultra huge difference between Lulu and Palo Alto. Regarding just the gap itself. I think the biggest difference was, since you asked, I'll pull it up and we'll put them a side by side comparison because that's why these long terms are so important. And I'm one of the few people that talk about long terms, so I'm. I guess I'm just weird. But if we do two, if we do a side by side comparison, left is Lulu and right is Palo Alto. Daily CHART long terms so they're both huge, huge, huge gaps. And Palo Alto opens where.

Bouncing off.

The 200, almost all Alto opened above the 200 and traded down into it.

Right.

That's why on that day, Lulu opened below the 200.

Oh, there you go. Below the average. And then it had nothing to hold it up.

Nothing, dude. Zero.

Well, that is the answer.

That's the answer. That's what long terms are so crucial.

Yeah.

Wow. Yep, yep, yep, yep. And what a beautiful. I mean, this is just a beautiful, like, look at this channel. That is so pretty. And the hilarious part is there are so many people that are terrified to buy some Palo Alto right there, you know, like, well, why? It's literally, literally the same price. That about, you know, this. It's the same number as last time. You know, if you were looking to buy there, you didn't have to. It was like if you're looking at buying off the 200, that's at that price. Same price, you know, and then just trades right back out. Like that's a 30 point move.

Yeah. So.

And then earnings is around the corner on Palo Alto and it probably gaps up and fills the Gap and then just keeps going higher.

Well, yeah.

And eventually Lulu will get attacked together. Know, like, this is a good candle.

I hope so.

Yeah, it will. It's a good candle for it, you know, Nice little one. White soldier. Just. Just add some shares on some down days if you have any more, even if it's just one, you're like, all right, let me pick up a share. If you make some good money on another trade and you want to throw some profits in it.

Yeah.

Because their earnings are great. Like, they're going to buy a lot of their competitors. Once it gets back above the long terms here, everyone will love it again, so.

Well, yeah, man.

Especially those of us that look at them the long terms.

Yeah, it's just us. It's really just us. Like, that's from. From like a. From like a company or like a. Like a. Yeah. It's just not a lot of people, like, anyway, I love the long term. I think they're great, so. All right, well, next Monday we'll be on the same time as usual, 7am Central. And then Thursday, you're right, Joe will be back to 2pm Central. So 2 to 3 Central next Thursday, same kind of thing. We'll kind of review everything and just kind of talk through some stuff. And then the future. Monday classes with Mike's not here. We'll just talk through some real estate, look over some deals. If you want to share any of your deals with the group, you're more than welcome to. Eric, fun fact, you might raise some capital from this group if you want more capital. Real estate flips, always a possibility. So you can tell me, but I will also kind of go through some. Some investment ideas that I'm thinking through for real estate, just so we're aware, because, you know, real estate, the thing I love about real estate, and you probably can experience this if numbers work, the deals work.

Yeah, it's simple.

It's all about the numbers and it's simple. Right. It's a little too easy. It's a little too basic. You know, it's not great for super smart people. But if you're. If you're doing all the work and like, yeah, the numbers work and if you buy it low enough, you'll make money. There's a lot of great tax benefits and tax implications that are really cool with the real estate, so.

Right. Yep. Yep. I got one more question. Yep.

Please do.

I can. I'm not always available to watch the afternoon swing trading room. And the last few days you posted it in Slack, but I think you didn't yesterday or. I couldn't find it. Is there a easy way for me to find that? Because it's not on the new website either.

Not for the next couple days. Yeah.

Okay.

Need one. So you're saying you didn't get yesterday's?

I didn't. Can you like post it on the Ultra wealth or somewhere else or where can I go to find it? Because that's been my lifeblood. Watching that is awesome. I love that. At night, like at 9 o', clock, my wife and I, we sit down at the couch, grab a bowl of ice cream, put it up on the big screen and watch it. And so good.

Can you believe it? So we do it. Oh, I agree. Cannot believe that. You're hilarious. Yeah. Anytime. Anytime you want a video, you're like, hey, I can't find it, just shoot me a text and ultra. Well, I'll send it to you, no problem. Because until the website gets perfect, perfect, we're just throwing some weird stuff around.

Cool.

All right. Awesome. You're the man. Joe, you're incredible. Thanks for being in my life. I love you both so much.

Thank you so much.

We know.

See you guys. Bye. Bye.

See you.