Shared by
BanalityOfEvil
2
PLAY
NEGG – short squeeze continuation
CATALYST
NEGG has the attention of traders as a short squeeze candidate. Several names have been in play this week.
TRADE IDEA
Price could continue to nearest resistance @ 3.18 from August by the end of the day
SETUP QUALITY AND VARIABLES
“B”
• short squeezes are in play this week
• short float 14%
• low float 13M shares
• trending intraday
• clean chart over 2.50, looking to fill the gap to 3.18
• would like to see short% over 20 for an “A” short squeeze ideally with some catalyst of changing fundamentals… for this reason it gets a “B”
PLAN
• get long at break and hold of 2.50, watch tape for signs of weakness, hold to target
• stop is break and hold below vwap
REASONS TO SELL
• stopped out
• large sellers wont lift
• target hit
• tape slows
EXECUTIONS AND PRICE ACTION
Got long for break of 2.50 and then got into the box
Large sellers spotted @2.75 lifted
Large sellers spotted at 2.85 lifted
Large sellers spotted at 3.10 will not lift
Sold
Stock failed
KEY TAKEAWAYS
• good tape reading
• get bigger in this trade
• I was away from desk from 10:30 to 12; there may have been an earlier entry around $2, but I was not at desk to get involved
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2023-01-13 14:15:59 | NEGG | buy | $2.620 | long |
| 2023-01-13 14:58:05 | NEGG | sell | $3.020 | long |
| 2023-01-13 15:01:09 | NEGG | sell | $2.980 | 0 |
Comments
BanalityOfEvil
Thank you Matt. Yes 100%.
On a short term trade like this in a bear market I try to sell at least 80% at/near target.
I didn't put it in the notes, but I look at volume during the breakout too for an indication that we might be topping out. I notice on a lot of low floaters that when 1 million shares print on the 1 minute chart during a breakout that price will probably capitulate back down very soon.
mattklepetka
Very interesting analysis thank you! Would you want to discuss further about these breakout trades & longing day 1's/day 2+? My Discord is matt#0968
Hey sorry did not see this. Yeah that would be cool to chat about it.
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dope trade brother, I had a question on your tape reading if you don't mind. Are you exiting based off daily resistance, big seller, and velocity of tape at the time?