TJX Trade on May 21, 2020 09:35 from spyrosz: Tradervue User Stock Trades.

About retailers:
I noticed how WMT, HD, TGT, LOW, BBY crushed earnings but got hammered when market opened.
Why??
-- All these names have run quite a bit after the March lows.
-- Investors realized those earnings numbers were as good as they could get for quite some time in the future due to the pandemic pump.
So, if I expect next earnings release to be worse than this, let's sell/or at least take profits..

---> Pattern: Retailers that had rallied off lows + good earnings = sell-off at market open.

TJX didn't have the rally the other retailers enjoyed, but reported terrible, terrible earnings:
-- EPS and revenue miss, revenue -50% Y/Y!!
-- No guidance
-- Low short float, DtC
-- 90% held by institutions

After earnings, TJX was gapping higher inside a window on the daily chart:
-- Gaped above major daily resistance at $52 which was acting as a ceiling after the March sell-off,
-- It was trading below major resistance at daily=end of window=200SMA=$55.5.

Seeing the gap-up in-front of such resistance level, on BAD earnings of a stock with very low short interest (=no short squeeze), I thought "FADE"....

Premarket plan as follows:
a) BEARISH as long as it trades/holds below the 200SMA=$55.5
b) (P) Earnings Play
c) (S) Technical reversal at R1=$55.5
Since the stock was gaping higher showing strength, the only applicable short setup in my Playbook was the Technical Reversal on the 15min chart.

Plan was to let TJX rip at the open and get close to R1, enter a filler risking wide stop above R1 just to get involved and watch it closely, enter size as the pattern begins to play out, add on further confirmation. Target was the gap fill at $52.

TJX opened strong and popped to R1=$55.5 right out of the gates.

-- Sellers showed and hit it right back down to VWAP.
Entered short Filler size, risking wide stop above $56, waiting for the Technical Reversal on the 15min to form and add more size.
-- TJX bounced from VWAP right back to R1 but had a brutal rejection that brought price below VWAP.
Added Tier 0 size, seeing the Double Top at R1 on the 1/2min charts.
-- Obvious seller on tape held it down below $54.75.
Added half-Tier when it flushed through VWAP. Even though it bounced, seller was still there unloading shares...
-- Broke below VWAP, retested it and held it as resistance. Same time 15min chart looks ready to put a bearish engulfing candle of the previous candle and 1min 9EMA crosees the 20EMA and VWAP.
Added half-Tier, risking above $54.75 seller.

Trade worked out instantly.
Covered some in-front of LOD=$53.5, all-out as it stalled at $53.3 and reversed..

(-) I should have held small piece with stop above VWAP instead of getting all-out. TJX rejected VWAP and sold-off to $52.75 before finding a bid.
(+) I really like the way I scaled in on this trade. Every add comes after price provided additional confirmation of the trade idea than when I entered before. This is how I should move forward adding size.
-- Filler position+wide stop after 1st indication of selling pressure in-front of R1.
-- Added half-Tier after the Double Top at R1.
-- Added half-Tier after obvious seller on tape at $54.75
-- Added half-Tier after loss of VWAP and failure to reclaim it, with Technical Reversal on the 15min almost formed.