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Who doesn’t love making money in just a matter of minutes or less than a day?

As traders, we can get impatient sometimes and force ourselves out of a trade… just because it didn’t move within a certain timeframe.

Listen, the market doesn’t care about me or anyone else for that matter. It’s just going to move when it wants to.

However, there is one factor the market cares about

Supply & Demand

By understanding how to identify where demand can pick up, and where there might be supply (sellers) in a stock… it can help you better time trades.

That’s how I was able to uncover this $8K+ winner in ROKU, which was alerted to Rooster Report  subscribers BEFORE I took the trade.*

 

 

I want to show you how I spotted the trade and remained patient for the move higher.

 

Why You Need Be Patient As A Trader

Here’s what I sent out to Rooster Report subscribers last Friday.

ROKU is my trade today. I think this is gearing up for a $170 breakout, again, assuming the overall market doesn’t take a dip. It’s in a squeeze on the daily chart and rounding nicely right off the 34 EMA which would offer a really tight stop.

Range to $170 before resistance. Same as always on these options trades, I start ITM (in the money) so maybe $145 calls to give me high delta and more safety from quick decay of the option.

This is what’s called directional trading in which I play the higher priced stock continuation pattern with the lower priced option. As a general rule I’m looking 6-8 weeks out because if I’m too close on expiration and it stalls, the decay of the option speeds up.

Rooster Report is my highest-conviction trade idea for the day, so it can be tempting to hit out before the move happens…

However, there’s one tool I use to help me practice patient — chart patterns.

For example, check out ROKU on the daily chart when I was eyeing it for a trade.

 

 

My stop was the 34-day exponential moving average (EMA), the blue line in the chart above.

That signaled to me I could remain patient and hold onto the position, just as long as it didn’t break too far away from the blue horizontal line.

I stuck to my plan and I bought ROKU $147 Sept. 25 calls for $11.33 apiece, on Aug. 21.

Typically, when a stock gets close to a key EMA, the demand for the stock picks up. With ROKU, it can move fast, and it’s a little bit expensive to trade…

So that’s why I used calls to get more leverage.

Well, just a few days later…

The 34-day EMA held, and ROKU broke the 8-day EMA and exploded.

 

 

So that little move from around $147 (where the stock was around when I bought the calls) to $153 or so, those options went up about 25%…

And I locked in my gains.

My charts allowed me to be patient, and stick to my highest-conviction trade idea.

If you’re struggling with timing your trades or just have trouble coming up with ideas, you’ll want to check out Rooster Report.

It’s the 1 trade idea that I believe will grow my account, sent out to subscribers EVERY morning.

Author: Charlie Ngo

For those who missed my last grand slam trade…

I was able to pull down nearly 200% gains from MARA after it signaled unusual dark pool volumes in the days before a major news announcement.

And recently… more unusual dark pool volumes are starting to come across my scanners.

That’s right… just like MARA, I am getting tons of huge trades going off in stocks that have been quiet just the other day

So what changed?

Well, whatever it might be from, it sure caught the interest of Wall St. and the traders who are hitting the dark pools as hard as they can to secure the shares they want to trade.

And this is the same action that predicted the price jump in MARA days after the dark pools signaled this would happen.

Want to know what stock this is?

Dark Pool Profits

 

Dark Pool Profits is focused on identifying unique and obscured trading activity that is done in one of the most secretive markets.  

This is so secretive that nobody can trade in it without some serious capital and being registered as a hedge fund.

Now we don’t need to worry about secrecy and anaymonty with Dark Pool Profits… Since I monitor these markets and find the trades that stand out as suspicious.  

And once a trade hits the tape it’s considered public information…

Meaning you don’t have to worry about insider trading violations!

So let’s take a closer look at how unusual dark pool trading activity gave away the move in MARA.  

 

Unusual Dark Pool Trading Activity

 

Let me explain how this works…

It’s important to remember that Dark Pools come in two different flavors:

  1. A market for insiders or people “in the know” to place trades discreetly without impacting the public markets
  2. A market for hedge funds and large institutions to execute trades on stocks they want to buy aggressively

Now, these are two reasons why monitoring the Dark Pools is so lucrative.  

It boils down to just two main things…

Greedy investors and supply and demand!

Now… let’s take a look at what happened to MARA last week that spiked the stock more than 450%!

 

MARA – Did Somebody Know Something?

 

So… I think someone might have known something.

On 7/22 I noticed a huge spike in volume in the Dark Pool markets

It all started with this seemingly random and non threatening alert that triggered.

 

 

But what does it mean?

It’s telling me 5 pieces of critical information about this stock on the dark pools.

Let me break it down for you:

  1. Last: MARA is trading at $1.03 at the time of alert
  2. DPVolume%: Dark Pool volumes are surging to more than 211% greater than it’s 20 day average
  3. DPMoney%: Dark Pool money spent is over 200% greater than it’s 20 day average, meaning this volume is real size
  4. TradeCnt: Total trade count on this stock is almost 10k unique trades.  While this doesn’t mean much at first glance, it’s telling me that it’s actively trading and not a small stock giving a false signal.

What did it look like on the charts?

 

Source: Thinkorswim

 

To the average trader without monitoring Dark Pools, 7/22 seemed like an average day

Even though the charts don’t show it, it was one of the largest daily volumes for Dark Pools!  

And traders were buying this stock up all week…

Here’s what happened… just check out this insane price action shortly after patent information was publicly announced!

 

Source: Thinkorswim

 

 

Now that you see the power of the Dark Pools and how I spotted MARA from my scanner…

Let’s take a look at what else has come out of the scanner recently

 

What Do I See In The Dark Pools

 

Now, I know you might be asking…

Aren’t the dark pools always active?

And yes, they are…

But the real edge comes in the way that you pick through the noise.

And today if you were able to see the Dark Pool scanner light up around 9:30 to 10am, you would have caught this huge move higher in HX.

 

 

And if you were able to identify the trade right at 9:40 when it hit the scanner…

 

Source: Thinkrowin

 

Those are some huge gains right in the middle of the day for this stock!

 

EMAN – Can It Be The Next Big Winner

 

Now let’s talk about another stock that I saw and took a position on this week.

I’ve spotted unusual Dark Pool activity and heavy volume in this seemingly sleepy stock.

Let’s take a look at this stock a little closer.

 

Source: Thinkorswim

 

As you can see, EMAN has had some interesting volume spikes within the last few months.

But those volume spikes are in the regular markets… How about the Dark Pool Markets?

My custom software shows similar activity in exclusively these markets as well.

 

 

Similarly, EMAN has had some interesting volume spikes in the dark pool markets as well.

Which makes me question… who or why would anyone go out of their way to trade in these exclusive markets when they can just trade in the public markets?

Do they know something about EMAN that I don’t know?

Well maybe!

 

 

Now whoever jumped into the dark pool market last month must have known something good was coming for this stock.

It was just a matter of time until the news broke.

But that’s ok if it moved up from there because it’s still showing some amazing volume and this stock is added to my watchlist and maybe something I will trade in the days ahead!

Wrapping Up

 

Thanks to a Dark Pool scanner, I am able to search for and find hidden orders that hit a non-public market.  

Which allows me to find the trades that the insiders are taking and putting huge money on at their exclusive clubs.

But this is usually impossible to see, but a scanner makes the ability to monitor what the insiders are doing in these dark pools just a little easier.

And this is an exclusive service built specifically for monitoring this hidden action that I want to share exclusively with you.

So are you ready to be a part of this wild action?

Author: Charlie Ngo

 

mcSquares Enters The Boardroom

 

In this Deal Reveal, I want to show you more about mcSquares. This startup has created a new movement in the office and education spaces — Whiteboarding

mcSquares designs and manufactures a line of innovative and eco-friendly consumer goods focused on organization and collaboration.

They are killing it right now with impressive growth and software-level gross margins on their physical products.

Here’s the thing — The Boardroom and our members got the chance to invest in mcSquares before we found out that it will appear on Shark Tank. This means we got on board before the notorious Shark Tank bump.

After airing on this show, startups always see an insane increase in revenue. 

You too can be a part of this investment opportunity. As soon as the next round of funding opens, members of my Angel Investing Insider service will be alerted.

 

What is mcSquares?

 

mcSquares makes dry-erase collaborative products. These products extend and democratize meeting rooms and classrooms and help people engage with one another. 

Right now one of the startup’s top product lines is an eco-friendly replacement for Post-it Notes. Stickies, as they’re called, are selling like hotcakes and have a gross margin of 90%.

 

The Founder: A History of Success

 

Anthony Franco has already built and exited four separate companies before mcSquares. 

Like they say, angel investing is like betting on horses. The horse (product) is essential, but you also need a good jockey (founder). Well, Anthony has already won the Kentucky Derby four times. He’s a safe bet to win it again.

His four previous ventures were all in tech. He’s a software nerd at heart.

Let’s break down Anthony’s entrepreneurial success:

  • 20 years of startup leadership in tech
  • Founder of EffectiveUI, the world’s first and leading User Experience consultancy 
  • $150 million in direct revenue generation
  • $9 billion in total revenue generated from products managed for clients
  • Founded 4 successful tech startups, all with lucrative exits

 

The Boardroom Investment and Shark Tank Bump

 

The angels of The Boardroom decided to invest in mcSquares. Little did they know, just a short time later Anthony would be set to appear on the hit TV show, Shark Tank. 

This is an incredibly rare circumstance. To get into a company before it appears on the biggest investment show ever is a real home run. 

After appearing on the show, startups experience the famous “Shark Tank Effect”, boosting their revenues and notoriety exponentially.

 

In-house Manufacturing: Being in Control of Growth

 

Before the big relaunch, mcSquares products were manufactured in China — this just wasn’t working for the company.

As Anthony put it, “The manufacturer screwed up and was holding us hostage.”

His supply chain seized up and production was no longer in his control. He felt that he didn’t own his business, the manufacturer did. This was when Anthony knew he had to take manufacturing into his own hands. 

So, he brought manufacturing to the U.S. before eventually bringing it in-house.

According to Anthony, in-house manufacturing gives mcSquares three big advantages:

  1. Just-in-time Manufacturing – He doesn’t need to fit standardized deals with manufacturers of 10,000 or 100,000 units. Now, he can manufacture 20 units in-house and test them. 
  2. Prototyping and Go to Market – With in-house manufacturing prototyping is a breeze. This allows the team to iterate products rapidly to respond to the changing market.
  3. Control Over the Supply Chain – This control allows mcSquares to ramp up or ramp down based on demand. 

 

mcSquares Product Lines

 

 

Q&A with Anthony Franco

 

Q: What Is your current profitability and your future growth projections?

A: I’m currently operating the company at a negative profit. We’re operating for growth, not to keep the cash. If I needed to, I could stop growing and be cash-flow positive today. In terms of future growth, it all comes down to our products and their Gross Margins. 

The product that’s crushing it right now is our Stickies. The 6-pack of these has a 92% Gross Margin. That’s software margins, not physical product margins, all driven by the fact that we can manufacture them.

Our projections do not include any airtime. We are projecting to grow from just under a million last year to over three this year. That’s without the bump. The bump (from Shark Tank) changes the game significantly.

Then, we should go from three to eight million the next year, and from eight to fifteen in 2022. That’s what our current projections state. 

Q: Can you tell us about barriers to entry for competitors and copiers of your products? You have used the word “proprietary” to describe some products, can you unpack that?

A: We have nine patents we have filed, four have been issued the other five are pending. 

We have an exclusive on the material on the back of Stickies. That’s an Aerospace material that’s used by large Aerospace companies like Boeing, JPL, and Airbus.

The company that manufactures this material doesn’t want to touch it on the consumer space. So we were able to gain world-wide exclusivity on that super unique material.

Really though, the protection for a consumer brand like us is the brand. IP is great, it’s a good defensive measure, the trade-secreted material that we use called BubbleBond is also a barrier or unfair advantage for us, but where we see our biggest advantage is our nimbleness and the fact that we are building a brand around what we are calling “Whiteboarding”. We are creating a tribe. 

That’s what you’re investing in. You’re investing in the mcSquares brand and the ability to scale and grow new product lines and innovate. IP matters, defensibility matters, but really what matters in the consumer space is brand and we’re doing a good job at that.

Q: Can you let us know about the University of Denver study on mxSquares products?

A: We ran a study with the University of Denver. We put our Tablet product in a middle school classroom and did A/B tests with and without the tablets.

The study showed a 340% lift in passing grades when you had an mcSquare classroom and a 40% lift in overall test scores. 

Honestly, I didn’t believe it. I kind of called BS on our own study and said, “Run it again!” The results came back the same. Different classrooms, different teachers, different administrators, and it came out the same. 

Q: What is the cost of moving the manufacturing in-house? How does this impact overhead costs and the production of each product?

A: So our costs dropped. Our COGs (cost of goods) dropped when we brought manufacturing in-house. 

We had a huge expense in 2018 in equipment and gear — big machinery expenses. 

We now have figured out how to scale our factory line to get to $50 million with just a few hundred thousand dollars in equipment. 

We can scale right now with the equipment we have to $6 to $9 million in revenue. A single manufacturer in our factory can produce $1 million of retail products a year. So, if you want to get to $10 million, we need 10 people in production. It’s a very scalable business.

Author: Charlie Ngo