The Bad: After initially making a strong move in my favor, SLV continued its bounce off the channel. My entry into the position was decent. my expectations for the size of the move probably weren't. I had nearly a 10% drop from my initial short. Anyway, My position just went red by a bit, but I have over .80 before my stop is hit. If I'm right that this is a complete breakdown I'll be fine.
The last two days have made me rethink the cascade entry strategy I used. Had I hit SLV with a larger number of shares on the initial sale, I would already have closed out portion of the position for profits. Instead, I continued to add to my position as it went it my favor making me susceptible to going red on a bounce, which happened.
My view off the trade has not changed, however. The move to 36.44 was weak. On the weekly is shows up as a kangaroo tail top. Impulse is blue on both weekly and daily.
The Ugly: Ree moved up 20.35% because MCP bought out a rare earth processor, which caused speculation that REE would be the next buyout. I'm not buying. It's big move off a signal that hadn't suggested a bottom. My inclination is that this will fade. I shorted another 50 shares at 5.99. a 79% entry grade. However, this was a reactionary trade, which means I probably should not have entered it today. it is possible that this trades upwards if MCP does and I probably could get a better entry by waiting. Maybe 6.50 from the chart. It will be interesting to see if the bearish MACD divergence continues, which showed a clear top in the beginning of February.
No comments:
Post a Comment