OSTK Trade on Sep 13, 2019 10:32 from MarcoG: Tradervue User Stock Trades.

Company Description

Sector: Consumer Cyclical
Industry: Specialty Retail

Overstock.com, Inc. operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments. The company offers furniture; and home décor, including rugs, bedding and bath, home improvement, kitchen items, and other related products. It also operates Worldstock Fair Trade, a store that provides handcrafted products; Pet Adoptions, a free service and portal to display pets available for adoption; and Overstock Hotels, a portal that enables customers to search and book properties within its Website. In addition, the company operates Supplier Oasis, a single integration point for partners to manage their products, inventory, and sales channels, as well as obtain multi-channel fulfillment services through its distribution network; and offers businesses advertising products or services on its Website. It provides its products and services through its Internet Websites, such as overstock.com, o.co, and o.biz. Further, it focuses on the development and commercialization of financial applications of blockchain technologies. The company was formerly known as D2-Discounts Direct and changed its name to Overstock.com, Inc. in October 1999. Overstock.com

Trade Scenario

No Catalyst behind the stock. I have chosen it for the 50% short float, the move to the 52 weeks high and for an eventual long if price consolidates above that!

Trade Variables

Symbol : OSTK
Gap : 3.93%
RVOL : 6
pmVOL : <50K
avg Vol: 6M
Float: 28M
Short Float: 50%
pmPATTERN : Consolidation
Catalyst : None

Technical Levels

Support: 26
Resistance: 29
Inflection: 28.50

Trade Plan

50% short float could imply a move up and the 52 weeks level usually acts as a magnet for the price. I am aware of the fact that no real catalyst was supporting the stock!

Set-up : Up-Trend Continuation
Side : Long
Size : 60
Entry : 29.04
Takes :
Exit : 28.64

Comments

OSTK was chosen just for the technical behind it. 50% short float could imply a move up and the 52 weeks level usually acts as a magnet for the price. I am aware of the fact that no real catalyst was supporting the stock but at least the move up to the 52 weeks high occurred. My idea was correct. I had just to trade the move up to the 52 weeks high as I usually do in this kind of setups. In addition there is the fact that with no real catalyst a continuation could have been less likely to happen. Good lesson here!
I had to enter at the first retest @ 09:38 but due to the fact that it went below the pm high I have decided to don't trade it!
Even if I didn't succeed I am happy that the 52 weeks setup worked once again. When played with a fresh news catalyst can be really powerful.
One more thing is that OSTK without a catalyst was too extended to keep traders holding long positions once at 52 weeks high! Obviously investors started to take off profits causing the stock (with such low float) to drop.
Another day learning something new and constructive for me!

22/09/19
Completely wrong interpretation of the trade. I have understood it only after when writing my report but apparently not during the trading session. I will work to remove those kind of mistakes from my trading practice. Perhaps if I will trade the stock through the entire day I won't lose time trading stupidly. Such as this trade. Entered once already the stock gave a big move and dropped hard. I was not able to spot anything from the tape cause it's really incredibly difficult practice and be there always on the spot it's a hell of job!