SRNE Trade on Aug 14, 2020 09:57 from WuManChu: Tradervue User Stock Trades.

Idea, Entry, and Risk:

*Idea: Failed Follow Through vs Open
*Entry: 12.00 (1/2), 12.45 (1/4), 12.40 (1/4)
*Risk: 1:3 ($0.40 vs $1.20)

Catalyst and News:

-None, except carryover of threats of legal action vs known figureheads proclaiming short positions against the company, accusing them of price manipulation.

Fundamentals:

SRNE is known for never having pushed a product to market, poor sales and weak income.

Technicals:

Known for bursts of short squeezes given the 20-20% short float. Has seen substantial price action since the current attitude of the market brought it up from the brink of the 1-2 dollar range several months ago. Known to consolidate and flush out, even under SSR.

Summation:

Watched it fail multiple times vs the open, which was 40 cents lower than the close and finally hit under yesterday's support level. Failed from the open at 12.60, then again at 12.40, 12.20, and 12. Entered at the 12 fail at half size, expecting it to break down further. Once it hit SSR at 11.70, it slowly grinded its way back up and consolidated throughout the day, settling in a range of the 12.20s to the 12.60s.

I had strong conviction early on that it would eventually fail back down, especially with the extreme resistance at the top when it refused for several minutes at 12.57. I had added beforehand and added again at another pop into the 12.40s.

Alas, it never went anywhere and ended up squeezing to the top of the 12.40s channel again at EOD, which I took a small loss at for only 0.5R. More annoying of a trade than anything, considering how much of a pain in the ass this ticker can be and with how many other movers there were in the morning. Still, seems like most of the market was "sit on your hands and let it play" today.

Takeaways:

-Be certain that the ticker you choose has merit for movement. Despite SRNE's history of moves, it also has history of long consolidations.
-If the trade isn't going anywhere, consider, again, your edge, and whether it's worth it to spend any attention at all on it, to set the stops and leave it, or to exit and not let it be worth the bother.
-Never forget the items that should be on your checklist: Setup, Float, History, Sh.Float, Catalyst, and market Sentiment. While the setup seemed picture perfect, the Float and Sh.Float seem to be contrary to the move we were attempting.