Day trade Short RBCN 18.8%

The big news today was that GTAT declared bankruptcy and fell 90% from over $10 to under a buck.  I heard the news and immediately looked to RBCN. Down .04  I shorted it @4.46 and then the really fun began. This was a total avalanche.  I covered at 3.62, which turned out to be pretty darn close to the bottom. 

Why did I cover @ $3.62?  When a stock encounters aggressive selling and then that action slows and some bids come in I find it best to close the trade. It worked. 

Entry: 4.46

Exit 3.64

18.8%  (.85 R)

Closed Positions. RBCN, YOD

I closed my remaining half on the break of 9.   The catalyst behind the sell-off was down grades to sector leader Gtat, which was down over 3.00.  I knew RBCN wouldn't be saved from the selling so I decided to save more profits.  (9 had been resistance, resistance becomes support and support was broken.  All in all a very good trade for me.  In at 7.52 out at 8.92 (on this portion of the trade.  Some profits were taken as high as 9.29.

YOD:

I finally closed my short of YOD avg $3.44  bought in  @ 2.75 (avg)  I  was only going to close 1/3 of my position, but in all honesty I just go bored with it as volatility and volume have completely dried up.    I exit with a decent  profit on the trade.

New Positions: RBCN, NQ

I added two new positions today. First RBCN at 7.52:

RBCN makes sapphire glass for semiconductors and potentially for face plates cell phones.  A competitor GTAT has a long term deal with apple, which has essentially taken all the supply.  Should the industry grow, new players would likely go to RBCN as a supplier.   It missed earnings which caused the dip.   I  like the risk to reward here has 7.50  could provide support a break of 7 and I'm out.   1R risk on the trade.

Dynamic chart:

NQ:  This one is interesting. For months NQ has been dogged by reports by Muddy Waters that the company was engaging in fraud. Today, the company issued a press release advising that the independent auditor found no evidence that the company was engaging in fraud and substantiated revenue growth.  The stock exploded upwards:

I believe that this is a type of episodic pivot event discussed by Stockbee. The volume was huge and the news could be a game changer leading to a multi-week change.  Still it is Chinese  and where there is smoke there is often fire. To that end, I felt the best way to play and manage risk was to buy the calls.  I bought August 12's for 1.85.  For options, I assume that my position will go to 0.00 and take the position size accordingly.