PLX Trade on Apr 4, 2022 08:25 from BanalityOfEvil: Tradervue User Stock Trades.

PLAY

PLX – PREMARKET SCALP WITH OPENING DRIVE

CATALYST

FRESH NEWS
6:50:00AM
PLX
PROTALIX BIOTHERAPEUTICS AND CHIESI GLOBAL RARE DISEASES ANNOUNCE TOPLINE RESULTS FROM THE 24-MONTH PHASE III BALANCE CLINICAL TRIAL OF PRX-102 FOR THE TREATMENT OF FABRY DISEASE

Plus positive earnings and sales reports from Thursday March 31st

TRADE IDEA

PLX could touch $2 on the open

SETUP QUALITY

B – some resistance on the daily around 1.80 and news is not A1

BIG PICTURE

• Overall markets have been bullish, small caps have offered long opportunities in early trading and on the open since March
• Fresh news
• Float 44M
• Extreme RVOL over 100x in premarket
• ATR 0.8
• SPY over 450
• VIX over 20
• Chart is beaten down and if volume pours in, $2 could be within target

PLAN

Scale into 2000 shares max in premarket around $1.50 area. Sell 80% into strength around 1st target 1.80 area, and hold a runner for a move to $2. If price holds $2 into the close, then hold a small position overnight for possible multiple day move up to $3

REASONS TO SELL

• Algo presence is heavy and tape will not move with volume
• Price breaks and holds below premarket support area @$1.40
• Targets are reached

EXECUTIONS AND PRICE ACTION

@8:20 – 8:40 scaled into 1700 shares as price consolidated around 1.50, algo presence is heavy in premarket. This could be messy on the open. If price holds in 1.40-1.50 channel into the open, then reduce to 500 shares.
@OPEN – price has held up through premarket. Huge volume pours in but price cannot move, some topping tails coming in, algos printing wildly on the tape. Will take 80% profit on 1st sign of strength, I no longer like the trade.
@9:32 took profit on majority of position as algos allow price to lift slightly to touch 1.70
@9:48 took another portion off as price tests 1.80 (1ST TARGET CAPTURED). Need to leave for work in a few minutes. Stop set @1.55 price avg on small runner.
@3.15 stopped out, made my way back to the desk after work and cut runner manually. Not interested in holding this overnight. Will close below opening price.

KEY TAKEAWAYS

• Good job getting a good price
• Good job being aware of algo manipulation
• Good job selecting targets
• Good job managing risk
• Consider implementing OCO orders if I need to leave for work so I can capture 2nd target if I am not at desk
• Monitor current small cap gapper performance to attempt an identification of algo manipulated price trends to assess whether I should plan on holding more size for longer into the open. If gappers with algo presence are trending higher majority of the time, then consider holding size for longer.
• Continue to cut majority of size after the open to avoid whale liquidation volatility in names like this

Premarket Prep

Symbol

SPY

VIX