HYMC Trade on Mar 29, 2022 09:34 from BanalityOfEvil: Tradervue User Stock Trades.

PLAY

HYMC- multiday short squeeze

CATALYST

HYMC short squeezing in sympathy with MEME stocks (GME,AMC). AMC recently invested in the company which has generated some interest.

TRADE IDEA

Price could make a new high of day if price can hold $2.40 area on the open (yesterday’s intraday high) and could touch $5.80 area by end of the week

SETUP QUALITY
C - price is a bit extended, and the stock is fundamentally dog shit

BIG PICTURE
- HYMC has has been trending choppily over $1 for the past 2 weeks, price exploded yesterday and closed above recent resistance of $2.50.
- Price had been heavily extended in premarket, so a retracement could happen before trend continues higher
- SPY is holding over 450
- VIX is under 20 for 2 days in a row (not supportive of thesis) market may resting before picking a direction
- Float 83M – a bit high for my blood, but is getting a lot of volume
- Short % 154 – extremely higher, moving in sympathy with GME and AMC
- ATR .5

PLAN

Start accumulating position around 2.75 area (premarket support) but could drop down to test 2.50 area before moving higher.
Sell ½ around $3 area, ½ at premarket high around $3.40, and holding the remainder for a swing until target is hit or price is stopped out at 2.50 area

EXECUTIONS AND PRICE ACTION

@Open – was looking for big sell off in the opening 5 minutes, but it never came, price flagged with volume and some speeding up on the tape to break over $3 (premarket resistance and psychological resistance). Thought I may miss the move so decided to get in here full size. Price immediately capitulated seconds after entry… flushing to my original planned entry point and putting me into max risk on the trade… FAKED ME OUT HARD… IT HAPPENS… BUT THIS WAS A C SETUP AFTER ALL… ROOKIE MISTAKE
@9:56 added a tiny portion near major area, thinking this would bounce and I could exit ½ of my position around 2.80 to reduce my loss… thought a big bounce had to come based off the volume… bounce never came, AFTER 10AM MORE HUGE SELLING VOLUME POURED IN… SOMEONE BIG UNLOADING HERE
@10:06 bounce finally came but volume was a bit light… not really what I wanted to see
@10:10 started to dump my position just in case this was the last capitulation point before flushing to God knows where
@11:15 after price had consolidated over major support @$2.40 I dumped a little more, trying to manage my loss calmly before setting a stop on the remaining ¼ of my original gross size before leaving for work… stop is set, will hold this small position overnight just in case there is afterhours and premarket continuation.

Price has held yesterday’s major 2.40 support level, will hold this unless 2.40 is broken or if volume completely dies out over the next few days…this may move unpredictably moving forward and I am not willing to hold under 2.40

@day 2 premarket - stopped out

KEY TAKEAWAYS

• This was a horrible setup through and through and I am embarrassed for taking it. It would have made sense to enter between the 2.75 and 2.50 area because risk could have been managed when price capitulated.
• I pulled the trigger when $3 flagged and held on the open with volume and confirmation on the tape, however this was a poor entry because price had sold off so ferociously in premarket… the real breakout area was 3.20 or 3.44
• Trading out of FOMO on poor setups is a recipe for disaster… haven’t made this mistake in a while… size down and be pickier moving forward until VIX gets back over 20 along with continuation in SPY
• If any big players are left, be very wary about further capitulation tomorrow around $3 and $3.20
• All whales may be out as this point as today was huge opportunity for them to unload their positions, and they probably did so, as could be easily seen on the opening volume profile and price action.