COIN’s $1 spike at the open makes me feel better about covering too early last week, gotta be careful with momo plays in this sneakily-emerging bull market. MALL and VVTV displayed the exact same kind of forced buying Thursday into the close, same dip afterhours, so I awoke early to reserve shares of each, fully expecting big drops growing bigger throughout the day (return to normalcy). No MALL available so my focus was on VVTV. Shorted 600 shares at $5.90-ish pre-market, didn’t want to take a full position in case of morning spike…at the open there was a wall of sellers at $5.90 so I doubled up, shorting 400 shares more at $5.87…20 min in, looking good at $5.70, but instead of taking my $175-ish in profits, I got greedy, rationalizing this should retrace all the way down to $5-$5.25…mistake #1
Overall market exploded upwards, stock held that important $5.70 level (mini-support from Thursday), broke through the wall at $5.90 (bad for shorts like me!), spiked to $6…I still held, thinking it was a multi-day holder—especially with earnings coming up and their tendency to screw up…back down to $5.90, but held…gotta cover when former resistance becomes support…I didn’t…mistake #2
MALL was also bouncing $1 off its lows…quick squeeze past $6, I panicked and covered at $6.09…gotta play it safe…protect TIM at all costs…stock hung around $6 rest of the day…$223 loss, not the end of the world, but it’s a stupid loss because I ignored what the price action was trying to tell me…aka the problem with me trying to be a longer term short and go for bigger gains.
TIM Lesson: Don’t try to rationalize with your near-meaningless opinions, respect technical levels
Oh yeah and my failure to wait until the afternoon on a less-than-ideal (no multi-day setup) trade didn’t help either…minimizing loss was huge, but will be soooooo nice when I can actually get back in the same day!…rest of the day, MALL and VVTV proceeded gradually, if not hugely, lower, VVTV testing $5.70 again, holding, bouncing…gotta wait for support to crack before shorting!All that action made me miss a nice breakout in MNTA, but nope, I don’t feel the least bit guilty about not playing all these volatile mortgage/finance stocks like BSC MF, FMD…they might be trading like penny stocks, but they’re not eligible for PennyStocking
HALO’s morning spike reaffirmed my previous thinking coulda woulda shoulda shorted off its failure to crack resistance at $7 but hindsight is easy…saw it fade gradually all afternoon, waited for it to take out the day low of $6.60-ish, shorting 600 share at $6.60…stock quickly tanked below $6.50 to actually go negative on the day…I was getting excited to see morning route tomorrow (clear path to $6.10-ish, meaning no support), then all of a sudden, a high volume buying wave brought up to $6.70…squeezed a bunch of shorts…including me…strangest thing I’ve seen in a while…couldn’t risk it, especially with a biotech (news could be forthcoming)…covered at $6.69 for $70-ish loss…
Fact remains 90%+ of microcrap and smallcrap stocks up strong after 3 days which are barely hanging positive go negative before days end and get routed the next morning/day…this turned out to be one of the 10% where it didn’t work…odds were on my side, I’d do it again and again…maybe tomorrow it cracks big, we’ll see…
And as for all your people wanting more out of VLNC, too bad, it’s not at any breakout level, aka back to random price action!
FRPT showed strength, but after the close their auditor resigned, gonna restate financials, delisting…all typical gutter trash microcrap tendencies, expect the same from the likes of other pumper favs like COIN, IDMI, CTIB, CTDC
What a crappy day, but I did contain my losses well…gotta focus on IDEAL pattern only…C’mon you bulls, show your strength and gimme an exponential gainer to play before month end so I don’t have to feel this worthless!
Posted in 101bad, Bad Trades, Fess Up Time, Impatience, TIM Lessons