BBBY Trade on Jan 10, 2020 09:31 from Defy: Tradervue User Stock Trades.

This was day two of that bath and beyond earnings play. Yesterday they were down significantly but had a small rally in the clothes. My piece is going into this trade was that I would nail it on the gap up in the morning and ride it back down to the 13.60’s then start to cover my position making sure to keep a core if it went red.

Position started off well I hit it right around $14 rode it down to the 13.80’s. Felt I was too biased and when I seen it start to reverse instead of at least taking off half the position I was confident that this could potentially test highs but would end up ultimately failing. Ended up ripping through highs where I covered the position wasn’t patient enough with the second try where I got in just above $14. I liked the look of The volume and felt the consolidation was showing weakness but once we had the engulfing candle just before 11 AM and then the doGi on the next dip I knew it wasn’t going my way. Had to cut the position for a loss.

Decided to leave it alone and come back later once volume started to wash out. Tried it again when I seen weakness. Actually got a pretty solid fill before 1 PM right into the drop. But due to my bias I stayed too long and ended up having to cover flat.

Gave it one more go just before catch three. Was really convinced this was a short but that I was early. Ended up covering right into the spike up. Wasn’t interested in holding this overnight because I felt confident there could be a gap up.

Takeaways

I had the right idea initially, I wish I would’ve covered into my first position then I would’ve had at least a cushion to work from. I’m usually pretty good at switching bias but this stock in particular with the earnings they had I just didn’t feel it is a long.

Going forward if I am biased to One Direction and I do see the reversal pattern on the one minute but I let my buyers carry me to early in the day. Truthfully looking back on this it looks as though it’s overnight shorts covering with shorts trying to do exactly what I am doing also. And then you have long piggybacking on this price action once it confirms a reversal hence why we seen a short squeeze for the rest of the day. I do believe my evaluation of the earnings and company in general is correct but I have to remember that price action always needs to be considered and with the market were in right now it’s primed for a stock like this to squeeze out shorts