Killer setup, down big and last 2 days were going pretty flat and Adam F tweeted something positive in the morning which fueled SRPT. Took a scalping short risking $14 and got out at the bottom. Going against the trend, scalp treat it as a scalpt. When target hit got out, move on.
Saw higher lows so got long premarket risking $4.65, it's got catalyst earning and iron ore section is hot. I anticipated morning para break above $5. Saw absorbing after market opened so added to the position. However I underestimated its capacity so I got out at $5.30. About half hr later I saw it was speeding up when volume was pouring in so I shorted but didn't workout. But I was proud that I scaled out when it didn't work given higher base and time stop loss triggered.
I should have known that market was bullish on it and there must be lots of people have taken position and maybe intended to hold it o/n for gapper. So I should have the thesis that since this ticker drew in lots of bulls what would be the signal that they see which can cause they panic by selling??!! Same as when you buy for squeeze, you gotta ask yourself, "if i was short, at what point I would freak out and cover." Putting myself in market's shoe and think from their perspective!!!!!!! the Point comes when it breakout the previous 2 tops but got stuffed and failed to breakout HOD, at that point, bulls got disappointed and would say, FUCK, Imma out and selloff started from there!!! AAPL, SPY, XLE.at that point started washing which pushed CLF down much further.
Therefore it's important to look at the chart and form a thesis and wait for the confirmation then pull the trigger!!!! Ended up leaving a lot of $$$ on the table!!!! I had an amazing day and got tired therefore not paying attention to it. Shoulda woulda coulda off....
Proud of cutting my entire position when it started basing at relatively high level!!!
Then saw the momentum was reducing and looked like about to shift so reshorted it. Nailed the dead bottom!!!!!!
Didn't trade it big size for 2 reasons: <$3 eats BP and it could have gone wild and go to $3.
But looked like the buying ceased so I took the short at $2.76. One important question to be asked, what if it kept going, honestly I don't know how I would react to it!!! Like Nate said, " you never know what you would do until you were faced with real situation." Even though I told myself that if it continued going I would cut my position BUT if it went para I would hammer at $3 at bigger size and looked for exit on next pullback.
Compared to my downfall yesterday, I enacted patience so I nailed it!!!!! Never EVER get into the front wild side of the move, avoid being early at ALL COST!!!!!!!!!
Same as BCEI earlier, PROUD of my trade!!!! Whenever saw basing always cover!!!! BUT this bitch tricked me so I should have reshorted massive when the breakout turned out to be stuffing. Remember I said earlier, always have a thesis/mental picture of how stock should have traded and reaction to each scenario. Like MR said, "you have to reach a level where you don't think you just react."!!!! But always have a plan and consider all possibilities before hand.
Market volatility enlarged 1hr before the closing and all the energy&oil stocks started trading along with ETF!!! SDRL, BCEI, SM, DNR, CLF, FCX, etc started retraced!!! I don't know whether it was the beginning of the resuming oil downtrend or just temporary consoliation/shakeout period. will see tomorrow. This is the part commodity stocks are hard to trade b/c it moves with the market! There is no way you can guesstimate it!!!!
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