REE sold off nearly 8%. I've had a long standing buy to cover order at 5.36 for 1/3 of my position. 5.36 happened to be the low of the day earning me a 100% grade on the exit. Woo hoo! This looks like a sick dog, but I wouldn't be surprised to see a relief rally because the sell of was so severe. Anyway by taking profits, this will let me ride this much lower. I'm triggering low 4s.
Triage: In retrospect, this was a bad trade with many broken rules. I fairness to myself, however, I took the position before I created the rules and before I had started the impulse system. It's evident that I initiated this trade way too early into a strong wave of buying. The impulse system would have prevented me from taking this trade when I did. Because I was only short only 200 shares I was able to ride out the position. Also, I felt comfortable with the fundamental reasons for this short as I had researched it extensively.
I entered this after a large move by selling ITM calls (short shares were scarce). There was no MACD divergence at the time however, Had I waited until that occurred I would have gotten short at least $1.50 higher. My second entry was nearly 1.00 higher. So I averaged into a losing position, usually not a great strategy.