Tags:
Big Picture
Microsoft had news on the day that it would be acquiring Activision in an all cash deal.
Technical Setup/Reading the Tape
MSFT had an opening drive that moved as high as 308 before pulling back. I was watching that level to see how it would react when it came back into it. It briefly made a new high, but there was no push higher with a flurry of green prints on heavy volume. I had a similar trade recently where that was my signal to get short risking a new high. I
Trade Management
I took about half the trade off not very far from my entry to cover all the risk. Overall I was pretty bullish on MSFT given the initial price action I'd seen and the news on the day. After the trade started working, I had the feeling that I was going to get stopped out and I took off a significant additional portion of my shares at prices that I probably should not have. I did hold small portion of my shares for lower prices.
Conclusions
I definitely know better than to doubt a trade, but in this case I did and it cost me. I definitely traded this like it wasn't going to work and I left a good chunk of potential profits on the table. I put on a full risk allotment, but didn't give it enough of a chance to work.
Execution detail:
Date/time | Symbol | Qty | Price | Position |
---|---|---|---|---|
2022-01-18 09:42:57 | MSFT | -100 | $308.035 | -100 |
2022-01-18 09:43:14 | MSFT | 50 | $307.460 | -50 |
2022-01-18 09:44:37 | MSFT | 4 | $306.890 | -46 |
2022-01-18 09:44:37 | MSFT | 1 | $306.890 | -45 |
2022-01-18 09:45:35 | MSFT | 10 | $307.295 | -35 |
2022-01-18 09:45:37 | MSFT | 10 | $307.205 | -25 |
2022-01-18 09:47:10 | MSFT | 4 | $306.800 | -21 |
2022-01-18 09:47:10 | MSFT | 1 | $306.800 | -20 |
2022-01-18 09:47:29 | MSFT | 4 | $306.480 | -16 |
2022-01-18 09:47:29 | MSFT | 1 | $306.480 | -15 |
2022-01-18 09:53:15 | MSFT | 15 | $305.825 | 0 |
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I had similar trades with RBLX, I use the QQQ and SPY to extend up and flush back. Example saw QQQ down -2.00% then pulled back -1.15% which MSFT consolidate 310, QQQ starts working back above -2.00%.