JKS Trade on Oct 21, 2020 09:37 from spyrosz: Tradervue User Stock Trades.

Initially I thought I nailed this. 2nd look, not so much. 3rd look, I blew it.

Let's review:
Stock on a tear from $20 to $91 on solar energy hype.
Yesterday's candle and volume, and today's premarket action were key for spotting today's "Blow-off Top" trade.
- Went parabolic yesterday, getting biggest extention from 9SMA@daily
- HUGE green candle yesterday that traded much larger volume than the previous days, and the largest volume on an up-day. Stock closed at HOD.
- Post-/Pre-market gapped higher, put a premarket high=$90.8 before reversing hard below yesterday's close.

1/3 of Trade
I really liked how it "double topped" and moved away from highs premarket, so I put offers close to R1=premarket high=$90.8, in order to catch the opening pop towards that level, risking tight stop approx. 1% of price above R1.

Plan was to "short" the opening pop risking vs R1=premarket highs, add through the break of VWAP and break-down of S1=premarket low=$85, cover at S2=$82 and S3=$77.

It's amazing how well JKS followed my premarket plan.
Popped to R1=premarket high=$90.8 at the open, got filled in one of my offers, risking above R1, I was quick to hit the bid twice and add size as it rolled over and broke through VWAP, tightening stop to R1, expecting to clear S1=$85 and opening print.

Broke through S1 and opening print like a rock, covered small in-front of S2=$82,
reloaded back as it got brutally rejected in its attempt to bounce from S2, tape remained super-heavy with lots of red in TS, bringing stop above S1=$85.

Covered at S2=$77, all-out when it failed to break S2 and move lower at 11:30am.

(+) Great thesis, great price/tape reading, awesome executions.
(-) But that was only 1/3 of the overall trade. I nailed the difficult portion of the trade, and completely left the easy $$$$ to be made on the table.

Per my notes on the "Blow-off" setup:
1. Stock opens below a resistance level (if stock is at ATHs, then this level is the premarket high)
2. Fails to break above the resistance level at the open, and quickly moves lower away from price --> Tier 0 risking HOD
3. Stock must lose VWAP & start trading below it w/o being able to break and hold above it. Stock must hold clearly below VWAP!!!No leaks above it (see ROKU, RAD, BYND, TLRY, AAL)
--> Enter Tier II risking above VWAP (be aggressive)!!

2/3 of Trade
JKS squeezed back to S2=$82 & VWAP, and even tough it tried multiple times to reclaim the level and m. average it failed. It held below VWAP w/o getting a single close above it.
When it moved away from price,

• short the f@ck out, risking tight stop above S2 & VWAP
• breaks S3=$77, continues creeping lower, takes out LOD=$76
• add momo tiers, risking tight stop above S2 $78-79 zone
• cover bulk on the flush to $72
• sit tight

(-) Never added back even though I saw the rejection of VWAP and the quick move away from price. Unacceptable.
(-) Never added back even though I saw JKS taking out S2=LOD showing weakness. Unacceptable.

3/3 of Trade
This is a Trade2Hold. Be patient and don't scale out quickly unless there is a reason to take profit. Remember, there is a high chance for a gap-down the next day...
Reasons2exit:
ex. stock reclaims VWAP and starts holding above it.
ex. Makes a significant higher low.
ex. breaks above a significant lower high.

(-) I completely missed the big picture here. I had the best entries, and covered all size at S3=$77. Stock closed at $69, and next day sold-off all the way to $61. That's about -$16 from best cover.

---> That should have been a trade that made your monthly PnL. Deserved 100% focus, time, and risk allocation. Short-sighted, didn't even realized what I have missed, only after the close.