GAPPER
News
Technicals
Trade Execution
The premarket high was $28.87, just under the significant resistance of $29.00. I wanted to see if get above $29. On the first 1 min candle, it got right above $29. I bought market 50 shares, no fill. I bought market again, no fill. I checked to see if the "Cancel All" button was BOLD (it is normally BOLD when there is a current order that is waiting to be executed) so I could cancel any pending Market Buy orders. It was not BOLD. I then saw that my "Buy Ask" button was not on, so I went into my settings to fix that. Once I was done adding the "Buy Ask" button, I noticed I had gotten filled 2 orders of 50 shares each. I now had 100 shares @ $29.17. When I had initially put in the orders, this was within 10 seconds of the open, I was looking for a quick scalp on a 1min ORB, a big push up and was looking sell up and close out on the way down, if it came down, if the first 1 min candle closed, and the second 1 min candle was breaking above, I was looking to hold.
Almost immediately after I noticed my position, the stock started dumping on the next 1 min candle. I was immediately down in my position. However, considering the circumstances, I felt it was best to hold my position with a technical stop of a close below VWAP. At this point, I was unintentionally in my position and was already down, at one point close to $100.
So the second 1 min candle was a reversal bar that bounced off VWAP. Price then sells below VWAP, but pushes back up immediately and closes above VWAP convincingly. It did this again on the next candle. The long bottom tails and the push back above VWAP, indicated to me that buyers were supporting it and volume was also increasing. Price got above $29 and I sold half my position @$29.71. I was looking for a bigger push up, but if price came below $29.50 I was going to stop out. Price came back below and I stopped out @$29.35.
Review
In hind sight, considering the size of the GAP up and the short interest of 30%,because of the extreme high volatility on the first 2 mins, I think it is best to wait for the first 2 mins to close. Moving forward, I will be looking at the 2 min chart for a cleaner picture of whats going on in this highly volatile period.
Scalp Trade
I watched it and I saw the rend had reversed and was looking good for a short. The trend was definitely indicating it was going lower, so I decided to short once sellers moved under the $29.00 level. MY mindset was going to be a short to VWAP or below, and cover on the first new 1 min high. Covered with an additional 20cents. Cool Lil Scalpper!
DAILY CHART
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-01-16 06:30:39 | SIG | buy | $29.110 | long |
2020-01-16 06:30:53 | SIG | buy | $29.240 | long |
2020-01-16 06:36:45 | SIG | sell | $29.715 | long |
2020-01-16 06:37:04 | SIG | sell | $29.350 | 0 |
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