Dark pool activity has been heating up… and that means more “smart money” ideas to take advantage of.

For quite some time, I’ve seen a slew of large bets being placed in the dark pools…

And some of these have been monster trades.

The other day, I mentioned a trade idea in NIO Inc. (NIO) and how this stock could run higher.

Since this trade was so compelling, I want to recap the trade and teach you my technique to uncover potential trading opportunities…

And how traders could’ve jumped into that action.


Dark Pool Trader Crushes NIO Trade


The other day, I sent out an alert to subscribers about a trade idea in NIO.



NIO gaps up two days in a row in a HUGE way. NIO has hit the scanner several times over the past week and I think now is getting these moves up in on breaks of recent highs and carry-over effect from other strong moves from electric vehicle stocks like NKLA and TSLA. NIO is really extended but holding and could move higher.

This happened when the stock was trading around $11.

That wasn’t the only dark pool activity I noticed in NIO.

Here’s what I sent out to subscribers on July 8.



NIO has moved up strongly three days in a row now. NIO has hit the scanner several times over the past week including yesterday. NIO is really extended but holding and could move higher. I don’t want to be left holding the bag here, but there still may be strength left for more upside.

Here’s a look at the hourly chart in NIO on July 7 at 12:20 PM ET.


Source: StockCharts


That dark pool activity signaled the stock could run higher.


Well, typically the traders behind these dark pool trades have financial backing. They’re what I would consider the “smart money”.

With the whole electric vehicle stock crazy, I figured NIO could run higher, which was why I found it so compelling.

Not only that, but there was one $4.73M and one $5.1M bet placed in NIO.

I don’t know about you, but if someone is throwing down a bet like that in a stock, it’s an indicator to me.

Think about it like this, who would place millions of dollars into a stock, unless they have a high conviction?

Now there was something even more interesting to me.

NIO has 824.45M shares floating, that’s a pretty big float in my opinion. When I looked at the short interest, more than 140M of the float was short.

That means if NIO pops, it would not only attract momentum traders, but short traders may be forced to cover. In other words, the demand could pick up.

Just by learning how to understand dark pool activity, I believe traders can put themselves in a position to find moves like the one in NIO…


Source: StockCharts


With dark pool activity, I don’t believe it’s necessary to “follow” exactly what the smart money traders do.

In fact, those who were able to catch options on NIO could’ve gained more than that dark pool trader because they bought shares.

Now, if you want to learn more about why this information is so powerful, you can check it out in my education suite here.

Not only that, but if you subscribe, you’ll also receive my watchlists, trade alerts, and my streaming portfolio.

Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

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