Today I took a trade on $CHOW.
$CHOW is a recent IPO that came to market on September 16th 2025. According to StockAnalysis.com, the company provides cloud solutions to businesses in Hong Kong, Singapore, the Philippines, Taiwan, Indonesia, and Australia, with its headquarters in Hong Kong.
CHOW is one of the classic Chinese liquidators we have seen over the last couple of years, the same playbook as TOP, ILAG, ZJYL, RETO, and a handful of others.
What happens with these names is pretty straightforward. A group trades shares back and forth between connected accounts, walks the price up to absurd levels, and hopes two things happen:
- Retail traders pile in after getting pitched the stock in sketchy WhatsApp groups so they can sell into them.
- Short sellers get involved and blow up.
Today, on December 10th 2025, $CHOW cracked below 12, instantly went limit down on 155,000 shares of volume, and locked at 10.59.
When it resumed, it opened at 1.00.
That is a 91 percent gap down.
After trading around and hitting a low of 0.72, the tape shifted. It started to firm up. We even went limit up. On the next resumption there was real buying pressure, then some sideways action. It was clear that there was some interest and support in the name.
So I got long.
I took stock at 1.19 down to 1.17 and watching the tape closely. If it turned heavy, I would ditch it. My thinking was simple. If it flushed, I could likely get out before another limit down and limit the loss to 10 to 15 cents.
But instead, the buying pressure continued and we locked up again.
On the resumption, I sold it at 1.64 for a 46 cent gain in just a couple minutes of being involved.
Not a bad trade.
Here is how I thought about it step by step:
- CHOW gaps down 90 percent plus on light volume.
- Wait for the tape to show support, then get long.
- Flip it out into strength after it goes limit up.
As I wrote in this article, when you are trading small caps on the long side, you trade around them. You are not looking for home runs.
You cannot be a dick for a tick when trading small caps. Take the trade, take the win, and move on.
