NVAX Trade on Dec 28, 2021 10:39 from JRockTrades: Tradervue User Stock Trades.

Big Picture

Market has been in an overall uptrend with SPY making a new ATH on this day.

SPY 30-Minute

NVAX has been on a roller coaster ride as continually changing covid news pushes it in one direction or another on any given day. It has been in a downtrend for the past few days. The downtrend line was broken on this day, which led to the explosive move NVAX made off the open.

NVAX 30-Minute

Technicals

VIX: 18 area
ATR: 20
RVOL: 300%

In addition NVAX had some news about being allowed to sell in India, I'm not totally sure. It was a serious dip and ripper off the open. The trading range had already exceeded 1 ATR on the day, though with news you could see it expanding that further.

Setup

I was attempting to buy NVAX off VWAP for a trend continuation long with profit targets of between 170 and 175 with the expectation that if it was going to be strong and trend to the upside, I would like to have about half my position still into the HOD. This really was an A+ setup. If this had worked it would be easy to see getting 5 to 1 or more risk to reward.

Reading the Tape

I was watching as NVAX pulled into VWAP. It wicked below and the tape stopped for a second and I took a position very near the low of that 1-minute bar. Right after my entry there was immediate buying pressure and a wick over 168. It was too quick for me to get shares off to cover risk. Unfortunately this was the most buying pressure I'd see during this trade and the tape got heavier and heavier and closer and closer to 165. The lack of buying pressure given the magnitude of the move off the open was very stark. Eventually you saw the bids at 165 get decremented and my stop got taken out. Given how much time had been spent close to 165, you figure everyone had their stop right there, so I got over 50 cents of slippage (stop was $164.91, actual exit was $164.35).

Trade Management

After my entry I did take off a few shares over 166.50 when it seemed likely that I wouldn't get anything more, but really there were few opportunities to sell at a profit. My targets were in the 170+ area, so definitely short of those areas. You could tell when it took so long to not work yet that it was very likely to get stopped out. I contemplated taking half off, but decided to stay in. Eventually I got stopped like I expected.

Conclusions

Sad it didn't work, but I took my stop out and that was that. I would take this setup if it presented again. The risk to reward was very favorable. If my entry had been closer to 165, I may have taken off half the trade when it took so long to not work.