KMX Trade on Sep 29, 2022 09:30 from AriTradingSim: Tradervue User Stock Trades.

BIG PICTURE
Solid day of buying yesterday as the overall picture indicated might happen. Closed near the high erasing the last three days of selling.

Today new economic figures has the market gapping down in the bottom third of yesterday’s range. Over the past month Health Care seems to be the strongest which is news to me because I figured it was Energy, but that’s near the bottom.

Key levels to watch for today is the 368 level to see if we can consolidate above that. Pre-market we are showing some resistance there. Support in the pre-market is at 365 but I don’t have a lot of confidence there, the real buy zone is 362-363. Be wary of chop. Some people are going to see this as a bottom while there are definitely sellers present.

INTRADAY FUNDAMENTALS
Gapping down 14% on 34% Volume on earnings. Key takeaway is that sales were reported worse than expected. Now trading below it's 52 week low.

LONG TERM TECHNICALS
Gapping well into the new 52 week low so nothing recent. 70 is the breakout and support level on the monthly chart from back in May 2020. This will be my main target.

INTRADAY TECHNICALS
R: 75 76 78
S: 72 70 68

READING THE TAPE
Entry: Buying on the open into the 76 level that had a seller in the pre-market. Sellers first showed up stacked at 75 and the stock made it through, when it hit 76 also on strong volume but couldn't breach, then started to head into the other direction I entered into the stock.

Exit: I did not use the tape for my exit. Price hit my target.

MANAGING THE TRADE
I was watching the 76 level ahead of time so when I saw the stock try to move into it twice on heavy volume (from the open), I started my entries. I had a strong bearish bias due to the fact that the stock was now at new 52 week lows and the past three days of heavy buying were all underwater. Usually for this setup I want to see it retrace the entire up move, but because SSR was on I did not want to get caught chasing the pricing downward and not getting filled. Instead my first entry was when it came into 76 and had a very wide stop off of 77.50 - 78. When I saw the rejection at 76 I entered again risking the entire trade now off of 76. Another reason I had more confidence in doing this instead of waiting was because I was also involved in an Opening Drive Short on the SPY. While I wasn't watching it I could see it on my P&L side getting greener and greener so I knew that there was heavy selling going on in the market while this hand't caught on yet. We broke the small uptrend from the pre-market and when we pulled into the support area around 71.25 I took off half. I was already up 3R on the trade so I locked in 1.5 - no matter what happened on this I still would have been green 0.5R. I patiently held into the 70 level which was my target and I exited the trade. I would have taken more off and held for a bounce or continuation but I can't today. I have too much to do at work so I had to call it an early day.

TRADE REVIEW
Great trade. I was well prepared and I couldn't have had better execution.
What could I have done better?: Possibly tried to add when it went red on the day and broke the uptrend from the pre-market. With how it was trading I don't know if I would have gotten a fill but I definitely could have tried.