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Jan 18, 2022 09:42

Shares traded: 200
Closed Gross P&L: $97.28


Breaking News Double Top Mean Reversion

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.


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


2022-01-19 04:31:26

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%.

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