Saw $5.40 big seller so took a short pretmarket, should have covered some before the opened but didn't. Due to weakness I slammed the bids before the open.
Saw lots of stuffing action so took more shorts into the morning spike then followed by hard crack then came the action that got me fucked yesterday. You gotta always be extra cautious when long wick happened!!! It indicated big buyers down there. Nate was long biased on it and expected it to wash below $5 and scooped risked $4.80 and anticipated $5 reclaim but I am sure he got out after saw massive resistance at $5.30. I covered some b/c it shouldn't have momentum to touch HOD. This is the case that 50/50 chance takes place. On one hand you have big seller selling at $5.30 and on the other hand you don't know whether there will be crazy buying force take out that seller. I am more trusting the short side b/c earlier $5.40 resistance and now $5.30. Some big equity holders must be there for unloading.
I still held 2100 shares with avg $5.20 and still thought it could go down and yes I was right. $5.80 reclaim got me a little unconfirtable so I covered the 2nd half there.
Main gainer today. It did went below $4 later but you never know. patience sometimes works sometimes don't. I took a huge position due to my conviction. Good chart read and nailed it. this is the setup that you should bring a big hammer and slam it!!! BUT always be careful when bids soaking happened especially after 11am. this VWAP rejection and fresh new low got me confident to stay in the trade. Always keep in the mind, this setup doesn't have 100% win rate but it has very good risk reward ratio. Even if I was wrong and it couldn't stay below $5 I took a few cents loss and got out. The key is to the "ENTRY" so nothing traumatic would happen.
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