-Another point that rings my bell is what Greg said, "using technical and fundamental analysis is not enough to decipher what's going on in particular price action." From technical aspect shorting at $2.87 is ideal because it was former resistance but again all the short sellers were making a huge and dangerous assumption that the former resistance is valid. Therefore shorting near $2.87 is okay, seeing big sellers on lvl2 is okay but it doesn't necessarily mean that it won't be broken out. The correct action in today's market is be late!!! Always always be late like Nate said, give it time and let it be tested, retested, peaked out then initiated the short. Remember you can't capture the top and from risk-reward standpoint it's not worth the risk to capture the top!!! Ideal entry is far better than best entry. If I were short I would probably get smoked again. I wouldn't be surprised to see Nikko, Gritani, Alex, Jay and many others in IU chatroom got smoked and underwater once it broke above $3. Unfortunately this is the market we are in N.O.W. Adapt or perish!!
-It's important to compare INVT with LEI's runup and it peaked out at $3.40 and a few minutes later we got what Derrick JL called "piercing thru resistance"setup and should further reinforce this one's short bias. Bouncing ball analogy works in this case, up and down, up and down, descending triangle accompanies by fading volume. When the VWAP was cracked on big volume and failed to reclaim it was the end of the story. there was another opportunity to short into late day volume recap.
-due to recent insanity the market was crazy and a lot of setup that used to work don't workout the same way right now!!! Always adapt!!!! Adaptation is the key to success!!
-lastly, recite to yourself: it's okay to miss a trade!! In fact it's better off to miss a trade than jumping on!!! Long or short, ALWAYS ALWAYS ALWAYS KEEP STOP LOSS LEVEL TIGHT NO MATTER WHAT!!!!100% DISCIPLINE IS THE WAY TO SURVIVE IN THIS MARKET!!!
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