So as I mentioned; I noticed that the short set-ups I was seeing had outnumbered the longs and today we had a nasty sell-off. Not saying that I predicted anything but the weakness in the markets was showing.
That being said; all of the short ideas off watch worked. I even traded one of my watches: $AFSI for a $45 profit. I really should have closed this trade when I was up $100 but greed got the better of me although this stock was surprisingly stubborn and held up around $12 late in the afternoon even while the indexes were tanking to new lows. Either way it was an okay trade.
Besides $AFSI, I also made one other trade in $SNAP. Today was my first time trading this stock and boy is this stock volatile! It moves in very sharp bursts and likes to fake-out. So gotta be very conservative with position sizing and stops. It faked me out for a small $15 loss before tanking lower in the afternoon. Could have been big winner for my small account had I managed to hold on. Ah well you live and you learn; I'll be better prepared to trade next time.
So after commissions; I ended the day flat. No gains but I feel much better about my trading today compared to Monday and Tuesday. I was not anxious to get into positions and I did not feel like I was missing out when the markets were tanking and I wasn't short anything. I stayed patient and waited for solid intra-day setups to form. What failed me today was my trade management. So I'll be sure to work on that going forward.
With the market gapping down and selling off hard today; I anticipate either 1 of 2 scenarios will likely play out tomorrow. The first one and the one I think most likely given the recent track record of this market is that there will be a bounce in one form or other. This could play out in two ways; a big gap down right out of the gates in which case I believe a bounce day will be a shew in. Alternatively the markets might open flatish; tank hard and then reverse later in the day. The second scenario and less likely in my opinion is for the selling today to carry over into tomorrow and we have another trend down day.
In any case; I have plays that will have me prepared to take advantage of either scenario.
So if we get a bounce day tomorrow; I will be looking to play the following stocks:
$IPXL (off $15 support), $FRTA (off $10, riskier play since its a recent IPO and has less trading history so $10 is not a proven support level), $AAOI (my best bounce idea; a leading stock and it held up well today...will be watching for a possible buy off $60 support)
If on the other hand we get a follow through day; I'll be watching:
$DDD (below $22), $SNAP (below today's low), $AMD (my best short idea for tomorrow..will be watching it for a short set-up below today's low)
My sole long idea is $PULM low float former runner spiked big today and surprisingly managed to close strong unlike all of the other morning runners today. I'll be eyeing it for a red-to-green move/OPR breakout tomorrow with the recent high of $3.42 as my target. Hit and run trade only...do not marry!!!
Lets get it tomorrow...CHEERS!!!