That was the number that scrolled across my screen after I sold shares on B. Riley Financial (RILY) back in April of 2024.

It was one of my biggest winners ever, turning $65 into $800 in just two days, live in my Daily Profits Live Trading Room.

So what exactly caused the move, and how can you prepare to take advantage of plays like this in the future?

That’s what I’ll be discussing with you today.

The Trade Setup

Before I got positioned on RILY, the market was picking up momentum after some oversold conditions. And I was looking for some stocks that had the potential to squeeze.

One of the main reasons RILY caught my attention is because the stock had a heavy short interest.

At the time I placed the trade, the short interest in RILY was 75%. After a recent monster rally, it has come down to 65%.

Let’s break it down step by step.

Short Interest: In the stock market, when someone believes that a particular stock’s price will decrease, they can engage in what’s called “short selling.” Here’s how it works:

• They borrow shares of a stock from someone who owns it (typically through their broker).
• They sell these borrowed shares on the market at the current price, hoping to buy them back later at a lower price.
• If the price does indeed drop, they buy back the shares at the lower price and return them to the lender, pocketing the difference as profit.

High Short Interest: This simply refers to a situation where a large number of investors are engaging in short selling for a particular stock. So, a stock with high short interest means that there are many investors betting that its price will go down.

Short Squeeze: Now, imagine the opposite happens – instead of the stock price going down, it starts going up. When this occurs, it puts pressure on short sellers.

Here’s why:

As the stock price rises, short sellers start losing money because they sold shares at a lower price and need to buy them back at a higher price to return them.

Short sellers may start feeling the heat if the stock price rises significantly. They might cut their losses and buy back the shares they borrowed before the price goes even higher.

When many short sellers rush to buy back shares to cover their positions (known as “covering their shorts”), it creates additional demand for the stock, further driving its price up.

This sudden surge in buying activity, especially from short sellers trying to exit their positions, can lead to a rapid increase in the stock’s price, called a short squeeze.

If you don’t know the story, RILY has been under attack by short sellers, alleging the company committed fraud.

The stock declined from its last year’s high of $91.24 down to a low of $14.26 in February.

So what caused the spike?

The company filed its annual report, it showed minimal adjustments to its financial numbers. More importantly, the company confirmed by a second law firm, there was no wrongdoing.

That news sent the shorts scrambling, pushing it to a high of $35 yesterday.

Below you can see my pre-market plan I posted in the Daily Profits Live Trading Room:

Last Word

It’s hard to trade successfully if you come in with a bias. RILY was attacked by shorts for months. However, I let the price action and the chart dictate whether or not I should take a position.

As retail traders, we don’t have access to the same information as the pros on Wall Street. That’s why it’s critical that we base our decisions on price action.

For example, I had no clue that RILY would be releasing their annual report yesterday, but on a risk vs. reward basis, the trade made sense to me.

When you do follow the price action, sometimes you “get lucky.” I can’t tell you how many times I have bought call options on a strong chart, only to see the next day the company catches an upgrade from a Wall Street firm, sending the stock soaring.

YOUR ACTION PLAN

Click here to login to Daily Profits Live to see my latest trades.

FUN FACT FRIDAY

New Highs and Sector Rotations: The S&P 500 and Dow both hit fresh closing records this week, even as the tech-heavy Nasdaq slipped.

The highs came as investors shift money away from tech and into sectors tied to the broader economy, with sectors like financials, materials, industrials and some consumer names are all doing more heavy lifting.

The post One of The Best Trades I Ever Made (1,130% Winner) appeared first on Trade of the Day.

That’s why next week – our Lead Technical Tactician Nate Bear is hosting a FREE “3-day trading challenge.”

This is your chance to put your trading skills to test.

And if you rank among the top – you’ll be eligible to win over $50,000 worth of prizes.

Click here to sign up today for the FREE “3-Day Trading Challenge.”

– Stephen Prior, Publisher

The FOMC is behind us and the reaction was bullish.

Well… it WAS bullish up until Oracle (ORCL) fell 14% after earnings and major tech stocks like Nvidia (NVDA) and AMD (AMD) took a dive.

Next thing you know, the “AI bubble” talk hit the headlines again.

But here’s why I’m not buying it.

While tech might be a risk off right now, I still believe GOOGL is “the one” in that space.

Take a look at its chart below.

That chart looks awesome.

As you’ll see, GOOGL has been trending up with consistent consolidation periods.

While there was some news on Open AI that caused a $7 drop yesterday, I still think the chart structure is solid. Which is why I believe GOOGL could be on its way to all-time highs.

So today I’ll be looking for GOOGL to break out.

If it has a good day, I can continue to add to it.

GOOGL is the top chart on my watchlist right now. For the trade setup, I’ll be looking at GOOGL $325 calls for next week right out of the gate.

Action Plan: I’m doing something I’ve never done before next week.

I’m hosting a FREE “3-day trading challenge” where you’ll get full access to our brand new paper trading platform – Monument Traders Battleground.

This is your chance to trade whatever you want and get invaluable practice without any risk to your wallet.

I’ll also be teaching you the exact strategies I used to turn $37,000 into $2.7 million (in just 4 years).

The sooner you sign up, the sooner you can start preparing.

Click here to sign up today.

The post The ONE Tech Name I’m Long on Right Now appeared first on Trade of the Day.

We roamed through the mall checking out each store, but the moods shifted immediately when the kids saw a Pac-Sun Store.

Everyone rushed into the store ripping through shelves and racks as they tried to figure out what to buy. Get this, they actually pooled their money in the Pac-Sun store to stretch their buying power!

Something powerful was going on, and it meant that there was an opportunity for me.

Three days later, I bought Pac-Sun stock. It ended up as one of my best-performing positions that year.

That experience shaped how I invest. I don’t wait for analysts to bless an idea. I watch behavior – mine, yours, and the people around us.

The best investment ideas are often right in front of you, not behind some paywall on Wall Street.

CJ’s Walk Down Main Street: December 6, 2025

This season, I hit the streets looking for the “perfect” gifts.

Living downtown in Cincinnati, I try to support local businesses – but like everyone else, I end up at a strip mall: DSW Shoes (DBI), Ulta (ULTA), REI, and of course… Best Buy (BBY).

Inside Best Buy? Empty. Music playing, video games running, but very few shoppers. I asked the cashier while I was checking out what was going on with the empty store. Her response? “We’ve been slow all season.”

That’s all I needed to hear. Best Buy – once a seasonal winner – is struggling. Opportunity knocking.

The Consumer is Slowing

Electronics prices aren’t the problem.

CPI data shows TVs and similar items are down about 2% year-over-year. The issue is demand and timing.

Earlier this year, consumers hoarded big-ticket items to front-run expected tariff hikes.

That “tariff hoarding” showed up clearly in March data and persisted through summer, lowering demand heading into the holidays. It helped Best Buy to blow buy its early summer earnings expectations, but things are catching up now.

Now, analysts at Telsey Advisory Group expect prices to rise in late December and January as retailers pass along tariff costs. The result: Things are about to go from slow to dead.

The Real Pressure: Heating and Grocery Costs

Karim just mentioned it on the weekly Catalyst Cash-Outs Live on Tuesday, what used to be a sub $100 trip to the grocery has turned into a $300+ trip for the same provisions. Inflation at the grocery store hits every American, not a single class.

TV prices may be flat, but inflation is hitting consumers elsewhere. Now, add in heating costs for the winter…

EIA data shows:

• Electricity: +10%
• Natural Gas: +8–9%
• Overall heating costs: +7–8% from last winter
• Regions hit hardest: Northeast and Midwest

That squeeze is hitting everyone, fast.

Best Buy Already Showed Its Hand

Best Buy had a brief stretch of strength earlier this year, possibly fueled by that tariff hoarding. But revenue and earnings have remained weak.

Year-over-year revenue growth just turned positive at +2%, after posting a -10% decline during the last slowdown.

Meanwhile, Amazon, Walmart, and Costco now outsell Best Buy in televisions. The company’s moat is gone.

Best Buy’s Seasonal Tailwind Is Over

Retailers historically thrive in the stretch between Labor Day and Black Friday.

Best Buy didn’t miss the trend this year as shares jumped over 30% during the seasonal rally, outperforming both the S&P 500 (+9.8%) and the SPDR S&P Retail ETF (+0.02%).

But that seasonal strength is now a headwind. December is historically one of Best Buy’s weakest months:

• Average December return: –2%
• Only 5 positive Decembers in the last 20 years

That’s not a dip, that’s a trend. I always tell my followers Don’t Fight the Trend!

Best Buy’s Chart: A Breakdown in Motion

Following a mediocre rally, Best Buy’s chart is flashing multiple bearish signals:

1. 50-day moving average is rolling over into a bearish trend. Last time this happened? March 2025 – right before a 22% decline.
2. Post-earnings rally has fully reversed, with the stock falling back below its 50-day.
3. 20-day moving average (my Trader’s Trendline) just crossed below the 50-day, confirming a momentum shift.
4. Critical support at $72.50 is about to break – this line has held four times in three months. Add in the nearby 200-day moving average, and this is a double breakdown setup.

If this level fails, BBY is headed toward $62.55, a 15% drop from its current price and tradable opportunity.

How to Trade the Breakdown

If you’re long on Best Buy, reconsider the hold.

The break below $72.50 – especially with the 200-day sitting there – is likely to trigger high-volume selling and increased volatility as investors run for the doors.

Here’s My Trade Idea…

• Buy-to-Open: BBY March 20, 2026 $75 Put
• Target entry price: $6.50 (based on Black-Scholes model, not current market price)
• Target price for BBY: $62.50
• Potential return: $12.50 value at expiration = ~92% profit

Exit Strategy:

• Profit target: Close if return exceeds 100%. Don’t get greedy!
• Technical stop: I strongly consider closing the put if BBY closes above its 20-day moving average for three straight days.

YOUR ACTION PLAN

Options involve significant risk and aren’t suitable for all investors. They can be highly volatile, and you may lose 100% of your premium quickly.

Before trading, review the Characteristics and Risks of Standardized Options, understand assignment/exercise mechanics, and ensure any position size fits your risk tolerance and time horizon.

I recently recorded a new video on why traders make decisions in 0.3 seconds and how to avoid “analysis paralysis.”

Click here to watch and subscribe.

The post From Tariff Hoarding to Chart Collapse: Why Best Buy’s About to Fall 15% appeared first on Trade of the Day.

“Wait for Jerome Powell to stop talking.”

Every time Powell takes the stage for an announcement on rate cuts, we use this exact strategy in the Daily Profits Live chat.

Once he exits stage right without any blindside announcement, the market usually goes up.

That’s my cue to start looking for bullish setups.

With the dust settled, there’s several on my radar right now.

Here’s one chart I can’t stop looking at.

Gold and my favorite chart pattern

The ticker I’m watching for a trade right now is the SPDR Gold Trust (GLD).

Now, I’m not a gold trader.

But to me, there’s nothing to do in GLD’s chart but go long.

It has everything I look for.

There’s a squeeze on the 130-minute chart.

It also has my favorite pattern – the woodpecker pattern.

As you’ll see above, there’s a strong sudden price movement upward, followed by consolidation with a some continuation to the upside. Forming a “woodpecker” image.

The goal for trading this pattern is to enter on the next breakout.

Patience pays off here, just like with trading around the FOMC.

So I’ll be waiting for optimal entry in Daily Profits Live.

Action Plan: If you aren’t already a member of Daily Profits Live and want to start trading with me in real-time, I have a special FREE way for you to do that starting next week.

I’m bringing an element of fun that I’ve never done before.

I’ll be doing a “3-day trading challenge’ where you can trade whatever you want. This is your rare chance to test your trading skills against mine.

And the best part – there will be $50,000 worth of prizes during the event.

I really can’t wait for this.

Remember – it’s completely FREE.

Click here to sign up today.

The post One Chart I Can’t Stop Looking At Post-FOMC appeared first on Trade of the Day.

The Mag 7 includes big tech groups like Nvidia and Alphabet (GOOGL), which make up 35-37% of the total S&P 500 market value.

Because the S&P 500 is market-cap weighted, those seven companies hold outsized influence.

The truth is… a 35-37% concentration is a balance problem.

Earnings growth can’t keep scaling forever,

Which is why I’m tilting toward non-tech sectors as the next wave of productivity and profit growth.

Non-Tech Companies are Becoming Tech Companies

The core takeaway I took from Ed Yardeni’s thesis is this…

Non-tech companies are becoming tech companies not because they want to – they HAVE to.

AI, automation, data, cloud, robotics – these are no longer perks for a non-tech group. They’re now foundational infrastructure.

This is why the “underappreciated 493” argument is so strong.

Imagine these 493 companies adopting AI.

How much faster could they grow?

Here are a few real-time examples…

John Deere now makes AI-enabled autonomous tractors.

Ford and General Motors run giant software and data platforms inside the car.

That’s just the industrial sector.

The health sector is also targeting growth from AI with facilities like hospitals and big pharma companies shifting from manual diagnosis to AI-assisted diagnosis.

Energy companies are deploying AI to balance the grid.

There’s also the finance sector, with banks quietly becoming the biggest tech spenders on earth. In fact, JP Morgan literally calls itself “a technology company with a banking license.”

So as these other sectors start to infuse AI into their services, there could be a “catch-up” process where the underappreciated 493 become a bigger part of the S&P 500.

YOUR ACTION PLAN

I recently recommended one of the “493 underappreciated” stocks for a trade in Catalyst Cashouts yesterday.

It recently added ChatGPT to its service.

Its chart has also been moving up the last couple days.

Log in here to get that pick.

The post How I’m Trading the “Underappreciated 493” appeared first on Trade of the Day.

The Federal Reserve is expected to make another decision on rate cuts.

To protect your portfolio from any volatility, our Lead Technical Tactician Nate Bear and newest Senior Analyst Chris Johnson will be going live for their “Trading the Fed” event.

They will also be dropping a special surprise during the broadcast.

Click here to sign up for this FREE event today.

– Stephen Prior, Publisher

Yesterday I mentioned Apple (AAPL) as a watchlist play.

The stock had been down for 3 straight days… but I knew that wouldn’t be a long-term trend. After all, any time I go to an Apple store, it’s packed.

This demand could only mean one thing – the stock was about to rebound.

So I entered a trade in The War Room to take advantage.

And in less than 24 hours – AAPL delivered.

The stock popped on strong consumer demand yesterday morning, and I closed for a double-digit 16% winner in ONE trading day.

Several War Room members were also in on the trade.

Here’s what they had to say…

This trade on AAPL is a great example of following consumer demand.

If you’re out shopping, and you notice there’s a line out the door for a product, what does that tell you?

The stock could be going up soon.

But that’s not all you need to make money off a trend.

The other skill is knowing how to exactly execute the trade.

When should you enter?

When is the right time to exit?

That’s exactly what Karim and I show War Room members how to do every day.

Action Plan: Fast winning buy opportunities like AAPL is why we have the watchlist e-mail for you.

If you want to start receiving all of our trade alerts in real-time, I invite you to join Karim and I in The War Room.

We’ve had a 74% win rate in 2025, with 248 total winners. Right now we guarantee you’ll receive 252 winning trades in your first 12 months of membership.

If you’re ready to learn how to trade like a pro in 2026, click below to join.

Click here to join The War Room today.

The post We Called the Top on AAPL (16% Winner) appeared first on Trade of the Day.

To get you prepared for the fallout, our Lead Technical Tactician Nate Bear and newest Senior Analyst Chris Johnson will be going live as part of their “Trading the Fed” event.

It starts at 2 p.m. ET, and they’ll be guiding you through all the potential sector rotations and momentum shifts that come with rate cuts.

They will also be dropping a special surprise during the broadcast.

It’s completely FREE.

Click here to sign up for the event today.

– Stephen Prior, Publisher

As we near the Fed’s rate cut decision, I see we’re approaching all-time highs on the SPY.

I think we could be setting up for a double top depending on the reaction.

I’ll explain how that could go down in today’s video.

Plus, I have a new trade setup for you.

Click the image below.

YOUR ACTION PLAN

Lemonade (LMND) is a recent earnings winner with a really nice pattern. It has a trend, pattern and a squeeze.

Here’s the setup…

I’ll be looking for a move around $89.

For the options, I’ll go with the Jan. 16 $80 calls, looking to get in between $71-74 and a stop on close under $70.

If you want to see exactly how I’m trading the upcoming fed announcement, I’ll be going LIVE with MTA’s newest trade expert Chris Johnson for our “Trading the Fed” event at 2 p.m. tomorrow.

The event is completely free.

Don’t miss it.

Click here to join us at 2 p.m. ET.

The post Ahead of the Fed’s Decision, Here’s What I’m Looking At appeared first on Trade of the Day.

And this is the time when seasonal trades often come into play.

One thing I like to do is go out and see which stores are constantly packed.

Take Apple (AAPL) stores, for example.

Every time I’m out, I notice AAPL stores have a line out the door.

It’s easy to see why…

The tech giant recently launched Apple Intelligence, an AI system that’s deeply integrated into its software.

Unlike Microsoft and Google’s cloud-first AI models thar require massive data sharing, Apple Intelligence uses direct integration to protect the privacy of its users.

I think this privacy-first approach is setting AAPL up as a “slow and steady” AI play.

History also shows AAPL has shown a significant boost in revenue during the December quarter.

Last year, the tech giant hit record highs due to iPhone 17 sales and AI anticipation. In December of 2023, AAPL also hit record highs driven by tech rallies and rate cut signals.

I believe we’re setting up for another rally to end 2025 with Apple Intelligence as the primary driver.

Plus, after looking at its chart, I see AAPL is at an attractive price right now.

As you’ll see in the chart above, AAPL recently dipped down around the $277 mark.

I believe this 3-day dip could be the perfect buying opportunity.

Action Plan: With holiday shopping hitting its peak and Apple stores packed, I’m watching AAPL for a potential trade in The War Room.

It’s just one of several seasonal plays I have lined up right now.

To get my exact entries and exits, click below to join.

Join The War Room today.

The post A “Slow but Steady” Seasonal Play appeared first on Trade of the Day.

The President of Yardeni Research is now telling his investors to underweight the Magnificent Seven.

Yes, you read that correctly….

Under-Weight.

As you know, the “Magnificent Seven” includes Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), Meta (META) and Alphabet (GOOGL).

This grouping has been responsible for a majority of the market’s gains over the last three years.

Just this year, the Mag7 group has gained +24%, which has outpaced the Invesco S&P 500 Equal Weight ETF’s +9.6% gain.

As it stands, information/technology now accounts for 45% of the entire S&P 500 – which means that most of the market’s heavy upside lifting has been carried by these seven companies.

But now, Yardeni says it’s time to get out – and focus on what he calls the “Impressive-493”, referring to the remaining 493 S&P 500 stocks.

It’s easy to see why…

All of the Mag-7 members now trade at a premium to the S&P 500.

This could lead to big opportunities in the over-looked (and now undervalued) remainder of the S&P.

Further adding fuel to the fire….

This week will kick off, what I’m calling, an “Economic Report Backlog Catch-Up.”

You see, after a few months of skipping the typical flow of economic reports, we’ll see a “catch-up” effect this week, as the Bureau of Labor Statistics will release JOLTS for both September and October this Tuesday – followed by the Fed making their latest monetary policy decision on Wednesday.

The FOMC is widely expected to cut another quarter point.

There’s no telling what we’ll see for JOLTS (or even if we can trust whatever numbers are reported).

How do you trade it all?

YOUR ACTION PLAN

Tomorrow at 2 p.m. ET, Karim and I will go LIVE in Catalyst Cash-Outs Live to reveal our latest pick. Spoiler alert: It will NOT be a Mag7 play. But rather, it’ll be one of the undervalued (and underappreciated) stocks that could soon see an upside move. You’re invited to join our live session in Cashouts tomorrow to get this exciting new pick!

Not a Cash-Outs Member? Join HERE to Get Access to Tomorrow’s Livestream

The post The End of Mag 7? How to Play It appeared first on Trade of the Day.

That’s exactly what I did with CAVA Friday afternoon. While the stock sat at $54 showing me this beautiful flag pattern on the 30-minute chart, I grabbed the December 12th $55 calls for $0.95.

The CAVA Setup That Has Me Excited

The 30-minute chart looked absolutely fantastic on Friday.

It had a clean flag formation sitting right at volume profile support.

Look, I don’t care that CAVA is down 55% year-to-date or that analysts are worried about same-store sales.

What I care about is that this thing bounced 12% off its November lows and is now sitting in a perfect flag pattern with a gap overhead at $84.

The fundamentals might be messy, but the chart is telling me something different: this stock wants to move higher.

Most traders won’t touch anything that’s down 55% year-to-date. They’re still reading about disappointing earnings and guidance cuts.

But that’s exactly why these setups work – I’m buying when the bad news is already baked in.

My Game Plan for Today

I want CAVA to break above $55 early today. If it does, I’m adding to my position – maybe building this up to 3-5 contracts total.

The beauty of buying at $54 with $55 calls is that I get to see the stock prove me right before I add more.

If CAVA breaks above my strike price, that tells me the flag is working and bigger things are coming.

That gap at $84 gives me a clear target for a potential $30 move from current levels. My December 12th calls give me plenty of time for this to develop.

Your Action Plan

CAVA needs to break above $55 with conviction. If I see that happening in the first hour, I’m adding to my position. From there, I’m looking for this thing to start working toward that gap fill.

While everyone else is wondering if the restaurant space can recover, I’ll be positioned for what the chart is already telling me.

Watch CAVA at today’s open. If it breaks above $55 with volume in the first hour, consider weekly calls for a play.

If you are trading the stock, target the gap fill around $84 for profit-taking.

If you’d like to know how I’m playing this and other ideas I’m executing, check this out.

The post I’m Loading Up While Others Wait For “Proof” appeared first on Trade of the Day.