WYNN: This is the only one that I was actually thinking of going with and I am glad I didn't since I might have taken a loss on it. I saw it was gapping down and it had been overextended on the daily for a bit. At the open I saw the parabolic to the premarket resistance where I was going to short but decided against it. It went lower for a bit but then came right back and broke HOD. I was looking for the premarket resistance to act as resistance again but it acted as support and went back up the rest of the day.
ZINC: I had this on watch for failed follow through. I had it on watch at the open as one of my main plays to be on the lookout for. I saw it having failed follow through and thought about shorting but it felt like chasing. There was a nice pop I could have shorted but I missed the entry and I never got any pops from there since it kept fading. I should have looked at yesterday's afternoon support level and shorted once that broke. That would have been a clear trigger for me to enter and a low risk stop at g/r or HODs.
OREX: This might have been the best opportunity I saw today. I saw it on the highest gainers list and I saw it also up yesterday so it had a nice setup for a short. I saw a nice stuff at around 10AM and wanted it to have a lower high before I went in but I never got that chance. I saw it when it was around $3.25 with HOD of $3.37. I wanted it to go to the low $3.30s again for an entry, otherwise I thought I would be chasing. In reality, it's not really a chase at that point even though it's not a top tick entry. I have to remember when I see a stuff and overall setup like this, I have to take it even if it's not a perfect entry. I could have added on a lower high if it came with risk to HOD.
KERX: I saw this on the highest gainers list and saw it going parabolic. I looked at the daily chart and it didn't really excite me. I saw a higher low on the daily and the chart has been beaten up and it wasn't up yesterday as well like OREX was. I guess intraday that matters less but I didn't like the setup. I saw the lower high form which would have been my entry had I taken it but I decided against it due to the reasons above. It would have been a good scalp but no big deal. I am more disappointed in not taking OREX than this.
CEMP: I wasn't watching this today at all after the gap down since I figured it was down enough but I guess not. Even though it was good news the market took it negatively and that is all that matters. When a stock gaps down on news like this then there it is possible it can go lower provided the stock tells you it will go lower (lower highs/base breaks/etc). This is in hindsight but I'm not sure if I would have traded it due to my account. I wouldn't have shorted it right at the open when it popped and there would be too much risk shorting nLODs (failed follow through), although that would have worked fine.
CDZI: I also this on the highest gainers list but saw the daily and it looked beat so that was automatically a negative. I saw a HOD rejection but it wasn't too convincing so I didn't really look at it. It ended up being a nice short but it wasn't the best and the volume sucked afterwards too.
VTL: I wanted to short this on any pops. At the open it faded and I thought I missed my chance but it came back holding higher lows which got me disinterested in it. It went to 6.90 before having some lower highs where I thought about shorting but had I done so I probably would have taken it off for flat since it faded a little but then came back and held higher lows and grinding.
TRIP/SNDK: I saw Nate tweeted about TRIP/SNDK red/green rally trades and so I wanted to make a note of this going forward. I believe he was talking in reference to FPRX which I had on watch but didn't know what to do with it. It did have a nice ABCD for the r/g reversal. The volume was kind of shitty in the morning which also got me to take my eye off it. This isn't a "new" type of trade in particular since it's just a r/g type of play but playing it on stocks that gap up and hold the prior day is somewhat new. I have definitely seen this before with DYAX and others. I am putting the TRIP and FNDK charts here for future reference.
Things to work on:
1. Remember the new r/g play listed above like with TRIP and SNDK.
2. When everything is lined up like it was for OREX with the stuff, just take the trade even if the entry isn't top ticked.
3. On stocks like CEMP that gap down on news (even good news), the market is reacting to the way it sees things. Now that I think about, rarely does a stock rebound or go lower when a move is "overdone" on these news plays. Maybe later on but the market reacts accordingly and how it sees fit. If a stock gaps down, chances are it can continue going lower. Obviously if a stock gaps down after being down multiple days in a row, you would want to go long washouts but that is completely separate from this type of Day 1 trade.
4. On failed follow through stocks, look for the prior day's support level to break as a good entry market if possible.
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