Pretty good comeback today considering it was my best day at the firm. Could have been more but that's with any day I suppose. I still need to work on mindset/psychology things but the system has gotten better. There is still work to be done there but it has gotten better.
OCLR: Gapped up on earnings and based on prior daily chart candles on earnings it just fades the entire day and it had similar type of earnings as last time as well. I was pretty confident so in the morning I tried using the level 2 a bit but that was unsuccessful in finding a top but I stopped out quickly after it went past a level. Sometimes that stuff works and sometimes it doesn't I guess. In the end it just went to resistance that I had drawn and stuffed there. The mistake was after it came off just shorting at vwap which placed too much importance on it again. But I held firm since I was in small size and it ended up working and I added when it went below the main support. Originally thought it could give up the entire gap but I covered at a few spots that I thought it was down going down. In the end it did essentially give it all up. It was just a bunch of lower highs afterwards. I covered half when it made a fake low by a penny and then it rebounded and then went lower afterwards and I covered in the 70s around the support from afterhours. Lessons: Stay small and add at good spots. Don't give importance to vwap in these scenarios. "Fake" lows/highs don't have to mean much in the longer term for the day - it can just be short term.
DGAZ: Shorted this at vwap when it had volume and then it came off but was looking for more but just covered for flat. Went higher the rest of the day. I saw it had big volume on the 7 area but figured it could still go lower despite that. Sometimes the big volume flushes are the bottoms and sometimes not.
BABA: Biggest gainer for me and was such an easy trade. I kept it on watch due to earnings and saw it was sort of weak in the morning. I didn't think much of it though although it did have nice failed follow through but I wasn't too sure then. Once I saw it again though I saw it had a nice pattern at the lows that I could give a tight risk to so I shorted there and my bid was in at the support from yesterday. It worked great and when I saw some stuff near my bid occur on level 2 plus volume so I got out near my bid for a great gain. It then ended up going $2 lower so another NTNX-ish type of trade. My thesis was the pattern and the fact that if it failed like this with this good pattern showing, then it can go lower and a lot of earnings even though they are good have been getting faded off. I guess what I failed to realize is like NTNX - if it does get to my bid and it's down that much it can probably go lower. Maybe I should take off half instead but I'll have to see on plays like this. Lesson: On these types of trades let it work for you and of course sometimes L2 works and sometimes it doesn't. Sometimes volume works and the blips work and sometimes not. It depends again on thesis > minute price action.
SKLN: A lot to learn from this stock. I tried shorting when 3.10 in the morning was a pretty definitive top on the level 2 and on the chart. I figured it might have to stuff past and then fade. It stuffed and then came under but then recollected itself and went higher. I got out and it was good that I did since it went up $1 after numerous stuffs. I wasn't going to pick the top with this one. I saw the huge volume at $4 but I figured it stuffed before so this could still go higher but this was a lot bigger than the rest. Later on I shorted it when I saw some level 2 fuckery with the big ask getting soaked then big bid going away right after it got filled. I figured it would have to get out more shorts though after it dipped and then reclaimed. I was ok with staying in but it was tough staying in the .80s. I could have used less size I suppose and then add up there. I should have done that instead. I did want to add up there but was afraid to in case it needed to go higher before it came back down. There were a lot of tricks in this stock but I stuck to my guns especially knowing who is behind it and what is going on. Overall the first short could have worked but it's ok - I tried and it was worth a shot. Later on when it had the big stuff it went slightly higher so I have to be prepared for that on all these stocks. Can't let that get you out. I will work on adding at those "scary" moments in time. The best thing is to just use less size and then scale in.
Other ideas:
VRX: Once I saw it come off and have a nice peak/bear flag I thought about shorting which would have worked. The idea of using premkt levels as a guide and see if it trades above or below certain levels then be more short/long biased it a great tool/guide to use. Also the news later on was different yet similar to the yesterday and people bought it this time expecting the same thing but it just got long crowded so the same thing doesn't happen twice.
CEMP/ADPT: Despite ADPT having 85% short float interest the pattern still worked and it faded all day.
Things to remember:
1. Less significance for vwap
2. Higher timeframe for highs/lows
3. Sometimes the little stuff works and sometimes it doesn't - thesis > minute price action
4. Make sure to get out of a trade ONLY when it clearly doesn't work. So use less size and add/scale into it as appropriate.
5. Use the over/under for premkt levels as a guide as what to look for during the day.
6. Short float doesn't matter for the pattern.
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