Frustrating day for me, but in a way, it also feels like the cold dose of reality that I needed to give me a nudge in the right direction. I started off on the wrong foot, by messing up my initial short entry on MCHX, and having to take a nasty 6k loss. Once it stuffed the premarket highs at the open, and cracked VWAP, I immediately took that as my cue to short size and my average was right on the half dollar magnet. Had I been thinking rationally in the heat of the moment, I would have taken a step back and let it retest and stuff at HOD, again. Unfortunately, FOMO got the best of me.
The good news is that I kept myself composed, and reentered short in the 3.70s, once it became clear that there was heavy supply overhead on the attempted HOD reclaim. Covered way too early, of course, but at this point I was more focused on minimizing my disaster. Spent the rest of the day taking meticulously planned trades, mostly short scalps on MCHX and SKYS, but also a few longs on ATNM and CATB. Ultimately, I went from 6k in the red to nearly break even on the day. Am I happy with my undisciplined mistake at the open? Of course not. However, for the past few days I have been consumed by a fear of losing, which has led me to missing or minimizing many opportunities. In my mind, half of the battle in finding trading success is to learn how to lose. Today, I proved to myself that I can take my loss, and recover from a seemingly insurmountable obstacle for my trading day.
Here are my charts, if you’re interested. I plan to post these more often.
- BIOC is a former runner, and the top gainer in the a/h session. It’s making a nice reversal move on the daily chart, after several days of consolidation in the 1.50s. I’m mainly interested in seeing this retest the highs from the previous breakout, either tomorrow or on Monday, and shorting pops on a clear rejection.
2. JAGX had an impressive rebound, following its morning panic, and consolidation in the .90s. However, it got stuffy and faded off into the close as it failed to reclaim the 1.20s, and set lower highs. As I mentioned in last night’s watch list, the merger news is old. However, this is a low float trading vehicle at this point. Given its staying power, I am reluctant to short this unless we get a major para move over 1.70.
3. CEI this is an oldie oil & gas low float stock (used to be LEI). If crude remains strong, tomorrow, this stock will be at the top of my basket for potential scoops of washouts/dips into trend.
4. SKYS had an impressive, albeit short lived morning spike, on its earnings report. This will likely retrace back to the sub 2’s, within the next few days. I would be interested in shorting a ramp towards 3, tomorrow morning.
5. KBSF is a little known Chinese retail nanofloat, which had a 1:15 r/s, effective today. This means that its new float is now ~800k shares. Super thin trader, with no news, but can easily get legs. Yesterday’s closing price (Feb 8), factoring in the split, was 2.90. The stock is up to 5.11 in the a/h session. Be very careful with this one, needless to say, but it reminds me a lot of a similar low float Chinese stock from Thanksgiving 2015 (EFUT). My plan on trading this, if any, depends on how it opens. Only edge with these types is to buy major washouts, and sell into strength. VERY RISKY.
Other Setups of Interest:
DRWI is a low float, with a history of multi-day runs, gapping a/h on news of warrants expiring. The annoying thing about this stock is that it’s part of the tick pilot program, so likely an avoid for me. I may be interested if it has a further p/m gap, if I can get an entry in the 1.90s.
PLX watching this chart very closely for a parabolic move, and very interested in scaling short into a ramp towards 1.50.
CETX has been one of the most pumped up stocks on the Nasdaq, and gave back all of its gains from today’s earnings spike. A well-known short seller is also teasing what seems to be a damning expose of the company. Worth an eye for any action.
PME watching pops towards 3.50+ to short, in anticipation of a potential trend reversal.
OREX watching for a parabolic over 6, and short into pops, if there’s a stuff move.