-Fairly easy trade, sized in a little too early, ideal entry but far from great. risking $13.80 level
-saw from level 2 and Time and Sales that a big seller at $13.80, whenever it hit it, sellers quickly jumped a few cents before it and got filled. It tells me the resistance is valid. It's hard to describe it unless you see the action(retrospection)！！！
-didn't trade it but this is the play that has volatility, liquidity and decent edge.
-small cap has relatively high degree of predictability than large cap, i see lots of people trading VRX, SPHS, VIPS. these stocks are too complicated, hedge fund involved, analysts involved, a PR or expose can easily influence the price, you are dealing with complexity, you don't know who is behind the scene so why put yourself in that situation ??!!
-this one easy, the price reacts to the contract with volvo. remember, whenever there is good news out, there are lot of retail people involved. these people are stupid, they tend to chase the stock, buy based on news. I can take advantage of the emotions involved. Since lots of retail bought it, I would definitely looking to short it. Got be contrarian!!! the best place to short would be "premature HOD breakout" remember, there are lots of people out there read the book said buy b/o, I would short into that big volume candle! On hindsight it was a fakeout breakout. then it started making lower highs, that gave me 2nd chance to short!
-the way to play it should be: 1st of all, short into emotional reaction to the news risking HOD and cover when seeing ABCD setup. 2ndly take advantage of premature HOD b/o and excitement of b/o buyers and amateur shorts covering. 3rdly knowing that exciting buyers and shorts got flushed out by the b/o and the fact it started making lower highs, size in anticipating the washout.
-that's it!!! you have 3 shots to do it!!!learn learn learn!!!!!this is late day fading action in Nate's DVD.
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