CGC Trade on Dec 9, 2019 09:54 from Marius: Tradervue User Stock Trades.

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Marius

 

SPY opening the week back in the uptrend with resistance at ATH's. FOMC is this week so will be watching for anything that is unexpected that would impact the markets.

I was watching a couple names in the pre-market and noticed many biotech names and the sector with a lot of buying and news catalysts. Had plans for some trades here. Then I noticed specific company news on CGC with the anticipated announcement of a CEO in place. I don't think this is fully priced in looking at the price action on the technicals. And with that, this is a favorable timing for this release.

What stood out to me was the amount of volume with the news catalyst at the open. It had done its daily average within the first 30 minutes. I had missed an entry at the open and was looking to get in with the strong buying at the opening drive. I moved into full size (mid-term to longer-term time frame swing) after the initial lower time frame consolidation at the open.

CGC had done over 100% of the daily average volume before the first hour of trading. The tape was showing large prints on the buying side and large refreshed bids. I did't see any notable selling on the tape.

Noting that on the mid-term chart that there was consolidation around 19. The current price action has this breaking into the upside. I noticed an experienced trader on the desk building a position last week. Looked to be a tactical area to control risk for a longer-term move.

Looking to see if there will be weekly trend change follow through here with the fundamental news catalysts, multiple time frame technicals, and possibly market psychology positioning.

RVOL - 5.66 (AM session)
AVOL - 6.65M
ATR - 1.28
Short Float - 19.21%
Shs Flt - 218.51M
Market Cap - 6.50B
Inst Own - 10.69%

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Trade Management + Review

Key levels low and high were tested at the open. The key here was that the low was tested twice which points more to the downside for at least the shorter-term. I found this price action unusual with this name heading down to support, holding, breaking key resistance, unable to hold, heading back down to support, then failing. At this point I've exited my position with some profit.

When price was trading around the resistance I did notice a very large seller on the tape at 43k shares at the offer. I saw the offer get hit initially at the open before heading back up and thought that this would show buyer strength keeping in mind price levels are still more important.

My reason to exit is that buying was dissipating and the sellers were showing shorter-term signs of taking control at and below 21.

Grading myself here executing the trade as a B-. I was able to stick to parameters and able to adapt to the data the best I can as it was developing. My open P/L was the most I've seen it fluctuate do the the size of the position and volatility. I'm objective here to be grading the process here more than the P/L as I'm developing the skills for the future.

Noting that I should consider scaling out large positions to decrease risk exposure and preserve profit. Also other experienced traders were still swinging their positions from yesterday and last week. They are managing other trades and have developed advanced skills so there are other strategies that I'm not accounting for.

Also noting that I need to use pre-entered orders on the new platform on the levels. Actually my order had been pre-filled but all I needed to do was confirm. Having an automatic order set at the level would have my order executed much faster than I could have possibly.

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Execution detail:

Date/time Symbol Side Price Position
2019-12-09 09:54:00 CGC buy $20.580 long
2019-12-10 09:38:17 CGC sell $20.790 0


Comments

Gravatar cfo9
2019-12-23 12:29:14
 

I love the work, keep it up homie

2020-01-05 20:41:14
 

Will do !

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