BMEA Trade on Mar 28, 2023 08:49 from BanalityOfEvil: Tradervue User Stock Trades.

Play
premarket scalp and opening drive

Catalyst
08:00:00AM
BMEA
BIOMEA FUSION ANNOUNCES POSITIVE DATA FROM INITIAL COHORTS OF ONGOING PHASE II STUDY (COVALENT-111) OF BMF-219 IN PATIENTS WITH TYPE 2 DIABETES; 100 MG COHORT 3 DEMONSTRATED AN 89% RESPONSE RATE AND 1% MEDIAN REDUCTION IN HBA1C AT DAY 28In Cohort 3, after 4 weeks of once-daily 100 mg dosing with the investigational, oral covalent menin inhibitor, BMF-219, 89% of patients achieved a reduction in A1c, 78% of patients achieved at least a 0.5% reduction in
GLN

07:58:29AM
BMEA
BIOMEA FUSION SHARES HALTED, NEWS PENDING

Trade Idea
Premarket Scalp - jump in and ride momentum until R2S; I was late to sit down and missed best entry
Opening Drive - wait for entry, ride momentum back up to premarket high

Setup Quality
A

• Fresh news
• low float
• extreme volume
• clean daily resistance broken, price is breaking out over $22
• clean price action in premarket
• market breadth is pointing to a weak/choppy open, but this seems to be in its own world but can't be overly aggressive.

Plan
Premarket Scalp - get long and watch tape for reason to sell. stop is entry price
Opening Drive - stock is being manipulated on open by market maker bots attempting to get on the right side of the trade in an attempt to profit off eager weak handed traders. The result is spreads getting extremely wide around VWAP/premarket levels in attempt to shakeout traders. Wait for price to consolidate at/above vwap and volume to drop off a bit. Once HFT has exhausted traders, the real move may continue. Wait for shakeout period to end, and hold to premarket highs.

Reasons to Sell
Premarket Scalp - stopped out/in the money a point or more/Highest volume prints & in the money
Opening Drive - stopped out (price breaks and holds below 22/Target hit/HFT continues to manipulate

Executions and Price Action
Premarket Scalp - clean trade, should have sold more when large volume poured in, gave back some profit
Opening Drive - followed plan. Price discovery was choppy, but held over 22. Market makers eventually let price move after 9:50am when participants seemed exhausted and volume dropped off. Once makers were on the right side of the trade and had soaked up all the liquidity the spread tightened back up after a final shakeout attempt at VWAP but I did not let it scare me. Eyes were still on this and volume began to pour back in. Price hit target and went limit up.

Key Takeaways
Take profit more quickly on scalps

Good analysis of price action and patience during discovery. Stock was clearly being manipulated but you did not get pushed around. Consider getting bigger/adding once price is ready to resume momentum trend.

Multiple Timeframes

Market Breadth