Hi all!
As expected today was a fun day for trading. So far my thoughts for pullback in the market have been pretty accurate this week. I actually hope we keep pulling but if not at least we got a bit of volatility back into SPY for a couple days. I had a pretty good day. I traded CAPN from my list which was a beast for almost 17% gain on my max sell, buying at $7.40 and selling $7.95 and $8.65. I also snagged some NVGN in the morning for a quick run from $4.00 to the $4.20s before it (inevitably) collapsed. This company has released basically the same PR 4 times now and it does the same thing every time. They just do it to raise capital since they need to fund the development of their drugs. Anyway aside from those two trades it was a pretty quiet day. I took a couple stupid small losses on PHMD (once $2.31 to $2.26 and the other from $2.38 to $2.28) which were prob dumb considering I even tweeted in the morning that the PHMD news was crap, and then like a retard I tried to long it. Lol so I guess I got what was coming to me :) Anyway good day overall and also sold my CERE swing at $0.49 like I mentioned last night! One more thing I wanted to mention: I actually almost shorted CREG at $1.16 this morning around 10:15am because it just looked sooo perfect and I figured you know what? I will just throw a stop over $1.22 and it's the same risk I would take if I shorted it at $1.35-1.40 and risk to $1.45-1.50. HOWEVER then I went back and looked at my plan from last night and saw that I said I wanted to short "$1.35-1.40, no lower" and decided not to short. This is an awesome example of why it's important to have a plan and how it can keep you grounded! If I had shorted CREG not only would it have ultimately been a loss but It most likely would have caused me to miss CAPN so I am REALLY glad I followed my plan and reinforced the reasons we have RULES when we are trading! Anyway, just wanted to mention that because it proves how important this process is especially if you are a learning trader. Here's my plan for tomorrow:
CREG - I am going to modify my plan on this a little bit given the action today. I still IDEALLY would like to see $1.35-1.40 for a short, but I noticed it was having a lot of trouble getting over $1.25 today so if it does break down in the morning and bounces but cannot reclaim the opening price I may short it using $1.25 as a risk level. The only reason I'm modifying this is that often when the stock is just about to snap you will see this kind of flat top action intraday the day before. In an ideal scenario it breaks that $1.25 early in the morning and goes wacky tabacky (obviously a very professional term that I just invented) to $1.35-1.40 so I can start in shorting w/ risk over $1.50. If this stays weak under $1.25 I could see a $1.05-$1.10 target...if it goes parabolic then probably just fade back to $1.25-1.20 by end of day. If it goes parabolic I would not be opposed to swinging it either since it will be completely exhausted at that point.
RGDO - Very strong close on this right into a big daily level so I am watching for a red to green move in the morning. Ideally we get a $1.23-1.26 open and then big volume push. Over $1.50 I believe this will scream so I'd consider swinging this in my Robinhood account also on top of a day trade. Some key levels are $1.34, $1.38, and $1.45 before it gets into the big gap. After that there is no resistance til $2+. This is my all time favorite type of setup and this is a really good example of one. If it gaps up I will pay very close attention to how it handles the first dip and possibly buy the dip depending on how it acts (dropping immediately, clean smooth pullback, etc)
AVEO - I originally thought this would be a nice red to green setup based on the way it closed, but it kept running in after hours so depending on how much it gaps up (assuming it keeps going) I may be more short biased. In fact I am almost guaranteed to be short biased at this point due to the after hours session. So basically if this gaps up which I think it will, I will either start shorting in premarket or be watching for a parabolic spike out of the gate. Ideal spot to short is $1.75-1.80 with risk to $1.95-2.00. If it gets to $1.75 in premarket I'll start shorting before the open and add into the morning spike. If it gaps up but does not run parabolic out of the gate and instead just flushes then I will hold my starter from premarket and let it fade all day, adding on any pops that look to be low-risk.
SGNL - This got a bit of juice today with the biotech crazies GENE, CAPN, BIOC, OREX etc but it didn't hold the first spike. However it closed with a big block of buying so I could see it continue and really rip through $3 if the market is strong. My ideal scenario on this is a weak open ($2.77-$2.82) followed by a big morning volume push to take it red to green and through $3.00. If that is the case I will get long with risk to $2.68 and have target $3.40-3.50. In case of gap up over $3 I'll be watching the first dip. If flat open, will be watching for a clean pullback back toward $2.80 ... do NOT want to see it just dump back to $2.80 but a clean pullback to indicate profit taking and control by the bulls.
A few on my reserve list just to watch:
- WPRT possible short since it couldn't break over $6. Watching $5.30 level
- CPRX got orphan drug designation in after hours. Likely gets a PR in the morning and gaps up so it will be in play most likely over $4
- PTX possible red to green as it held the consolidation and broke out today
- ANTH possible breakout $5.20ish
- CYTK just watching $8 area for now
- JRJC still watching that $6.50 area for breakout. $6 bounce from yesterday was spot on so it confirmed what I thought.
- ZIOP getting a bit extended up here. Watch for short $14+
- CLDX same deal getting extended, watch for short $31-32
- EPRS still grinding...still watching for short $12+
- ABTL watching for short $15+
That's it! Have fun y'all!
Chris
Submitted March 04, 2015 at 10:02PM by greenbartrading http://ift.tt/1B4t0tY
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