There are times when everything just comes together for a stock.
Now, I trade very specific patterns (and I use my algos to identify the setups). Every once in a while, we see a stock that hits multiple algos. When that happens, we get to witness something special.
Matt Monaco Reveals: “If I Could Keep Only One Setup, This Is the One”
Table of Contents
The Big Picture
Yesterday (Nov. 12), I was going through the regular PreMarket Prep routine, using my Oracle algo.
Every day, Oracle gives us a list of the morning’s most volatile stocks. So, from thousands of stocks, we get a list of 15-20 to watch going into the open.
When I pulled up the chart for Phaos Technology Holdings (AMEX: POAS), I hesitated momentarily.
It Smelled Like a Chat Pump
If it looks like a pump, smells like a pump, and the Breaking News analyst calls it a pump…
It’s a chat pump.
Now, I wasn’t about to buy a chat pump going vertical without some sort of plan. Because 99% of chat pumps fail at the open, okay?
I was hoping it would tank at the open because then we’d get the Oracle signal at a better price.
Instead, 10 minutes later…
POAS hit the Morning Income Algo, which identifies stocks following the Red Candle Theory (RCT) pattern.
By then, I was telling everyone to watch POAS and witness the power of confluence in trading.
Then, just before the open, POAS popped up on another algo, the Panic Point Terminal, which identifies short squeeze candidates.
Whoa, boy. Look at what happened…
The Confluence
POAS is a perfect example of what happens with a confluence play.
POAS 11/12/26, 5-min candles (The Power of Confluence)
With every point of confluence it hit, POAS was more likely to do exactly what it did. It continued to halt and skip up to the intraday high at $5.60.
To me, this is proof that confluence plays work.
My Take
Again, I was hoping it would tank at the open. Instead, it hit the final point of confluence, the Panic Point, and got halted in minutes. I missed it, but there were several ways to play it.
Congrats to all those who used the tools and recognized the confluence. If you’ve never seen a confluence play before, study that chart.
Watchlist
Investcorp Credit Management BDC Inc. (NASDAQ: ICMB) was my Double Down pick yesterday.
ICMB 11/12/26, 5-min candles VWAP hold style chart
ICMB held up all day, respected VWAP, and it double-tapped the Oracle major resistance (M/R) in the afternoon. It was also right near the Flux algo entry at $1.07, so there was some confluence on this stock, too.
If it holds, look for breaks of the M/R, with risk at $1. The target is the next Oracle support & resistance level.
On My Radar
- We’ll see you in 10 years, Nvidia (NASDAQ: NVDA), when you’re the next Blackberry (NYSE: BB)
- Anthropic named Company of the Year ahead of next week’s IPO
- Join me for the Sunday Setup to prepare for next week’s trading (just follow the link below)
