NKLA Trade on Sep 14, 2020 10:44 from WuManChu: Tradervue User Stock Trades.

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WuManChu

 

Idea, Entry, and Risk:

*Idea: FF vs 34.40s
*Entry: 33.40s (under key level 33.50)
*Risk: 1:3, goal LOD

Catalyst and News:

Continual weak response to fraud allegations and lack of meaningful statement. Follow through on SEC investigation.

Fundamentals:

Awful, but most of these electric truck companies are while there's no actual product yet/in development.

Technicals:

Continued falling and likely fails after allegations arose. Morning rally and subsequent dropoff suggested further falling. Occurred in the morning into SSR, rallied up a bit, remained heavy around key level.

Summation:

Entered on 33.50s test and fail, expected a fall from there but took small size as to test the waters. Set risk higher in case it squeezed up, expecting many on the same page and waiting for them to get blown out, but to have at least a starter position.

Surpassed second notable level at 34.40s. Was waiting for a chance to scale, but it never came and stock showed too much strength, consolidating and breaking out several times throughout the morning after the initial drop. Hit stop at 34.80s and took a minuscule loss. Took a small risk but ultimately it didn't come to fruition.

Takeaways:

-Still much easier with smaller size, even on what feels like a more difficult trade. Entry and position did not feel forced. Stop out was okay since size was small enough to feel manageable and not fearful over.

-Make sure you still wait for backside confirmations. There's little reason to focus on frontside moves when there are plenty of other things to short in this market. See SAVA (early), NNOX (late day), and earlier day movers.

-Get used to making earlier day moves and using P/M as a guide. Spent the entire day working where I can't manage positions. I'd rather be able to keep eyes on the screen than leave to stops and be done with it.


Execution detail:

Date/time Symbol Side Price Position
2020-09-14 10:44:33 NKLA sell $33.400 short
2020-09-14 11:13:50 NKLA buy $34.600 0


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