Parabolic move with legit funda reasons behind it, so needed to be patient with entry, careful with size/risk/stop and quick to take some off, as it wouldn't be easy like a normal meme stonk.
Met most criteria (but not the most important one calling for "out-sized previous day candle traded larger than avg. daily volume") for a "Blow-off Top" Setup, and it was about to open right in-front of $85=pre-COVID support pivot.
No setup (=no trade) at the open as it opened above resistance=$85 and rallied higher.
Took notice of the "killer candle" that brought price from $88 below VWAP,
Shorted filler at the pullback to VWAP, risking stop above HOD $88.01, wanting to add main size at VWAP loss and clear rejection to the penny, holding below, expecting to close the daily gap at $83.4s.
Reclaimed VWAP, put a lower high with obvious seller sitting at $87.5s,
Added main Tier the moment it crossed VWAP, risking same stop $88.01 for whole size, expecting to close the daily gap.
Bid for bulk in-front of the gap-level was hit instantly, decided to take home small trailer, despite not liking the close, stop same.
03-09-2022
Covered 50% of remaining at open as it wasn't looking like flushing towards the
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2022-03-08 11:08:53 | USO | sell | $86.510 | short |
2022-03-08 12:10:37 | USO | sell | $86.410 | short |
2022-03-08 12:17:36 | USO | buy | $83.550 | short |
2022-03-09 09:31:17 | USO | buy | $79.440 | short |
2022-03-09 09:36:47 | USO | buy | $79.820 | short |
2022-03-09 12:30:37 | USO | buy | $77.110 | 0 |
Nice trade and great detailed explanation.
Thanks guys:))
@fallofshadows
Yes, agree on the pullback, personally I was targeting a 9SMA@daily.
@rumeetdesai
Appreciate the kind words:))
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Nice trade. I kind of think we see USO roll down for a few days from here. I like your short play.