Hello, everybody! Barrie Einarson here, bringing you today’s edition of “What Makes This Trade Great.” Let’s dive into B. Riley Financial (RILY) and break down why this was such an intriguing trade today.To Subscribe: https://go.trade-ideas.com/SHQ
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The Setup

Early this morning, in the pre-market session, I noticed RILY moving down. This brown area on your charts, that’s the pre-market, where the stock was under pressure. The culprit? Some unsettling news—B. Riley announced they were suspending their dividend. But what really grinds my gears is this: They didn’t even release their earnings yet! The earnings are scheduled for the 14th, but they decided to condition the market ahead of time, hinting that the numbers aren’t going to be pretty.

Now, here’s my problem with that. If you were holding RILY, hoping to ride through the earnings, you were blindsided. You didn’t even get a chance to react before the stock started to plummet. But let’s not dwell on that frustration—let’s focus on the opportunity it presented.

The Trade

As the stock was tumbling in pre-market, our AI flagged a short opportunity at $9.50. Yes, you heard that right, $9.50 before the stock even made a slight pullback. It dipped down to $7, and as I’m writing this, it’s hovering around $7.50. That’s a 21% drop—a solid move for anyone who caught it.

The Go No Go Charts

Now, let’s talk about what kept us in this trade even as it jostled around. You see, on the “go no go” charts—those of you who have been in the trading room know what I’m talking about—we saw a transition from pink to deep purple. This shift is crucial. When you see that deep purple, it’s telling you to stay in the trade. It’s like a little nudge saying, “Hey, don’t bail just yet.”

So, imagine this: You’re in the trade, it’s bouncing up and down, and you’re starting to second guess yourself. But then you see that deep purple on the chart, and it gives you the confidence to stay in the game. Sure, taking some profit along the way might have been wise, but that deep purple was a strong signal to hold on for a bit longer.

The Bottom Line

So, what made this trade great? It was all about staying alert to the news, leveraging AI insights, and using the go no go charts to manage the position effectively. Even in a market where surprises like dividend suspensions can throw you off, there are always opportunities if you know where to look and how to react. This trade on RILY was a prime example of how preparation, tools, and a bit of intuition can lead to substantial gains. Check out my Homepage for more information.

Remember, every trade tells a story, and this one was about staying calm under pressure and trusting your tools. Thanks for tuning in, and as always, keep your eyes on the market and your fingers on the pulse. Happy trading, and I’ll see you in the trading room!