CLSK Trade on Feb 10, 2022 09:38 from BanalityOfEvil: Tradervue User Stock Trades.

CLSK – Intraday Bitcoin Sympathy T2H

Trade Idea
• Bitcoin sympathy play and market bounce play with recent news catalyst
• Quality - A

Big Picture
• SPY 450 support – major technical level being tested in late PM, anticipating market bounce after PM selloff
• BTC dropping sharply 8:30am to 9am testing short term daily support @ 43,200
• VIX @ 23
• Low Float 30M shares
• 9xRVOL
• Premarket gap holding, and moving in sympathy with BTC during PM
• Recycled news yesterday that CLSK increased its holdings of crypto in Q1, it narrowly missed its EPS and Sales estimates, released yesterday. I saw this as neutral but was bullish on its crypto involvement.
• Being heavily tied to crypto, a sympathetic bounce was anticipated on the open. IF BTC bounces with conviction, then CLSK could bounce with it up to daily support @10.50
• CLSK’s ties to crypto, crypto acting bullish this week, made me long biased on the symbol
• CLSK levels 8.30 - 9 - 10.50
• BTC levels 43,600 – 44,900

Plan
• Wait for BTC to show signs of a bounce after the opening bell
• Get long on break of premarket high, add on 1st pullback
• Take some profit quickly, selling 1/3rds, to remove initial risk
• Watch BTC and CLSK for signs of weakness, sell into strength
• Hold 25% to target or until R2S
• Max Size 450
• Risk .25ct
• PT 10.50

Executions
• Did not buy opening print. Waited for BTC to hold 43600 before considering an entry into CLSK. Could have gotten long @ 8.60, but volume seemed weak and I did not trust completely.
• @ 9:37 – ENTRY - Premarket high/pivot is broken, making a new high, BTC showing strength with engulfing candle of past 10 candles on the 1min BTC/USD chart.
• @9:38 went to T2, knowing that this may pull back before it went higher, I was ok with this. Did not add to full size
• @ 9:34 CLSK pulled back to VWAP and I doubled my position, going to max size. BTC was moving higher still, and this would allow me to improve my price average for a move higher.
• Stop is 8.75
• CLSK pulled back to give VWAP a stress test, price dipped below stop for split second, but the tape showed buyers stepping in, so I held
• HOD was reclaimed quickly with 2 1min bars and volume expansion
• Volume did not pick up as much as I thought it would, although at this point BTC was screaming higher
• This showed me that CLSK was going to lag BTC substantially in its movement
• @10am started taking profits in 1/3rd as stock climbed.
• @10:36 was out of 75%, since I did not like the volume profile, and one of my daily goals was to take majority of profits quickly, as I have been giving a little too much back.
• @11:42 – ALL OUT - some capitulation-volume began to show itself. Being so close to target and looking to lock in my profit, I sold the final 25%
• @12:20 CLSK capitulated and moved lower after briefly flirting with 10.50

Key Takeaways

• Could have been a little quicker with my entry (buying support @ 8.50 in the opening minutes) but given the volume profile and the overall risk in market at that moment I decided to wait for further confirmation. Under more bullish market conditions an entry closer to the opening bell would have been justifiable, although it is indeed a higher risk entry.

If there was a stronger positive news catalyst on this it could have been an A++ setup