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Cklamb

 

MRK

May 26, 2020 11:08


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VWAP Support Play Momentum Hold

MRK
Statistics
Total gain/loss: $13.80 Largest gain: $7.50 (show)
Average daily gain/loss: $13.80 Largest loss: $0.00
Average daily volume: 220 Average per-share gain/loss: $0.13
Average winning trade: $6.90 Average trade gain/loss: $6.90
Average losing trade: n/a Trade P&L standard deviation: $0.85
Total number of trades: 2 Profit factor: n/a
Number of winning trades: 2 (100.0%) Average hold time (winning trades): 5 minutes
Number of losing trades: 0 Average hold time (losing trades): 0
Max consecutive wins: 2 (show) Max consecutive losses: 0
Average position MFE: $9.71 Average position MAE: $-1.88

Intraday Fundamentals
• 07:50 AM EDT, 05/26/2020 (MT Newswires) -- Merck & Co. (MRK) rose more than 3% on Tuesday after announcing collaborative efforts to develop potential vaccine and treatment for COVID-19.
• The pharmaceutical company is working with the nonprofit research organization International AIDS Vaccine Initiative (IAVI) to develop a COVID-19 vaccine candidate. The vaccine candidate is in preclinical development stages with clinical studies expected to start later this year.
• Merck also signed an agreement with the Biomedical Advanced Research and Development Authority to provide initial funding for the collaboration.
• Meanwhile, Merck is working with biotechnology firm Ridgeback Biotherapeutics to develop EIDD-2801, an investigational treatment for COVID-19 patients. Clinical evaluation for the drug candidate has been initiated following the results of phase 1 studies, which showed that the antiviral compound is well-tolerated.
• Under this collaboration, Merck will gain exclusive worldwide rights to develop and commercialize the drug candidate and related molecules. Ridgeback Bio will receive an undisclosed upfront payment, specified milestones and a share of the net proceeds of the drug.
• As of Tuesday, more than 5.5 million COVID-19 cases have been recorded globally with 346,632 deaths, according to data from Johns Hopkins University.
Technicals
ADV 13.57m RVOL .44 ATR 1.97 BETA .51 Short .75% Inst Own 77.4%
Daily

Hourly

Intra

Trading Strategy
• Look for shorts at 81if it can come into the PM high
• Two days of selling along with some other Pharma names, look for a gap continuation at the open
o If this pulls into 78.60ish and starts to move higher take the trade at 79 on the LoD and look for a run to 80
o If this starts to hold 80, move the stop into the opening print and hold to 81.
• Sell 81 on any first attempt to break for a scalp back into 80.50, short any other attempt to that attempts to break and falls short
• Long or short the move back into the opening range
• VWAP tests and Momentum plays of the SMA
Reading the Tape
I read a lot of action on this as it tested VWAP heading into 9am mst
Trade Management

Trade Notes
I was watching this out of the gate. When it sold off into the level where the breakout started in the morning, I took the first sign of strength and in on a stall just below that. I held through a spike down to 77.20 before it caught wind. I took the add off and then parceled out the next two sets at .63 and .72 after it rejected .80. I think this was a poor add here as it was to large and not near a quarter are stall.
I started watching this again as it came back into 77.80 after rejecting 78. I held to see what the action was if it finished the move back into VWAP @77.65. I watched it hold a bit at 77.77 and again around .75. I was set up to take something on a 10/20. But, I hesitated as it actually hit .65 . It stalled as I watched the action play out around .75 (like earlier just in reverse). I had set up for 7/15 after it broke .75. I got filled at .80 on 7 cents risk looking for 15 or just under 78.I started watching this again as it came back into 77.80 after rejecting 78. I held to see what the action was if it finished the move back into VWAP @77.65. I watched it hold a bit at 77.77 and again around .75. I was set up to take something on a 10/20. But, I hesitated as it actually hit .65 . It stalled as I watched the action play out around .75 (like earlier just in reverse). I had set up for 7/15 after it broke .75. I got filled at .80 on 7 cents risk looking for 15 or just under 78.


Execution detail:

Date/time Symbol Side Price Position
2020-05-26 11:08:21 MRK buy $77.800 long
2020-05-26 11:15:07 MRK sell $77.950 long
2020-05-26 11:15:07 MRK sell $77.950 0


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