As per my trading plan from the weekend, I had $PCRX and $XRM as top watchers coming into today. For some strange reason I can't get the audio on my price alerts with my new brokerage platform working. So by the time I realized that $PCRX was breaking the $30.00 pivot and then attempted to enter my order, the stock exploded some 50 - 60 cents with out me! Since I don't chase entries; I just let it pass and watched it rip to near $32.50 before succumbing to an ugly reversal.
I also had $NFLX on my watches but as it had gapped above my planned $229 entry; I figured I'd take a shot at it if it dipped and held at that level. After about 15 mins of trading, it appeared to do just that and so I put a bid in at $229 which got filled. The stock ticked higher momentarily then with in minutes I was stopped out at $225 for a small loss but a loss none the less! I probably shouldn't have taken this trade considering how big the gap in the indices was.
So I decided to sit back and observe for a while. By midday I had concluded that the markets would likely fill the morning gap and close red on the day and tweeted this hypothesis as well. In line with this thinking; I got short $SCTY via purchasing June $45.00 puts when the stock was around $48.00ish. It proceeded to drop 3 points but closed off its lows as did the over all markets.
So now I'm holding this is as my only open position. Should $SCTY reverse tomorrow and proceed to break today's high of $52.50; I will get out of my position and take the loss. However, should it dip down to last Thursday's low around $40.00ish I may look to take profits depending on the tone of the markets. If the markets sell off hard tomorrow with $SCTY slicing through the $40.00 level then I'll be looking to take profits around the 20 day moving average around the $35.00 - $36.00 area.
On a separate note, I've not seen many set ups I like for tomorrow. In fact there's only one I like: $AEGR. It has all the ingredients I like to see in a long set up including high short float and a powerful catalyst. However, considering the ugly reversals in $PCRX, $NFLX and several other leading stocks today; I'm not confident in taking new swing long positions. However, I may look to add more short exposure depending on how the markets and leading stocks I'm watching evolve tomorrow.