Shared by
derekrucki
Momentum trade on BBBY. I shorted a pop to 57 which proved to be a little intraday resistance and the stock was in a down trend in after hours and pre market after it announced poor earnings yesterday. I only did small size and did not add on the way down because I dont think that is a smart thing to do with a momentum play like this, you get in and out quickly it is not usually a trade to hold. Unfortunately this stock just blew through daily support without me because I got out very fast for a 78cent profit which I was happy with (of course until the stock went down nearly another two points). Kind of tough on a play like this when to decide to get out since you are just trying to ride the wave of selling as quickly as possible but I definitely should have held on longer since it just kept going straight down through support.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2012-12-20 09:36:06 | BBBY | sell | $56.960 | short |
| 2012-12-20 09:41:38 | BBBY | buy | $56.180 | 0 |
Comments
derekrucki
ckz8780
What techniques do you use to decide when these are gonna drop like this? I always miss the morning drop and catch the afternoon flushes or short the first bounce cause I never know which way they are going to go in the morning.
I use the pre market trend to determine whether I am short or long biased and watch the price action very closely to identify seller and buyers at key levels. There was a ton of green being printed on the time and sales at 57 and the ask wouldn't lift. This showed me that there was someone selling a lot of stock there so I got short infront of it.
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You totally nailed the entry on this one!