Shared by:
spyrosz
On main watch for the break of the ascend. trendline established before SP500 inclusion.
It was looking weak premarket trying to hold above S1=major daily break-out level=$653. Just before the opening bell, broke below S1, and sold-off below yesterday's close=$650 towards S2=ascend. support trendline=$642.
Opened and held below yesterday's close=$650, and flushed below S2=ascend. support trendline=$642. Beautiful consolidation below S2:
-- VWAP acting as resistance holding it down
-- Three consecutive VWAP rejections + lower highs
-- Consolidation as long as it took for the 9EMA@15min chart to play catch-up with price.
got short Tier I, risking stop above S2=$642, expecting the break of LOD=$634.5 and a move to S3=$624. S4=20SMA@daily=$614 in-play as well.
Covered small at $632 once it broke LOD, wanting to cover a bit more in-front of $630s.
Did a quick bounce from $632 and....
(-) Terrible decision. I got flat the position once it reclaimed previous LOD but still below the intraday trend + VWAP. Instead of thinking "What a market gift" to reload, I am getting flat. Unacceptable..
What's the proper stop here?
a) VWAP+previous VWAP rejection is an aggressive/proactive stop to trim some, but NOT to get flat whatsoever.
b) Ultimate stop that renders whole thesis/idea invalid is reclaim S2=$642.
Of course when I realized what I've done, got back in smaller than before, just tragic, and got the move to S3=$624 and S4=20SMA@daily=$614.
Had bid to get "long" at $614.10 in-front of S2=ascend. support trendline=$614, but didn't get fill by 13c.
Execution detail:
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