Shared by
Emilie_BOWS
Context: gapped up to new high previous day, ended up with an indecision candle but held the gap, momo name, high short interest. Today it pushed up out of the gate and stopped just under $80 which was also previous day's high.
Intraday: ORB, VWAP
- took 1st entry on the ORB setup when it broke over $80 after the short flag right on VWAP
- added when it tested VWAP and bounced quickly. I almost couldn't get in fast enough
- added one more time when it was flagging just below $83 and about to get higher
I didn't sell in the morning because I didn't see any reason to sell when the stock kept moving up. I got out after it broke out again in the afternoon and started reversing.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2017-07-14 09:50:14 | AAOI | buy | $80.100 | long |
| 2017-07-14 10:33:15 | AAOI | buy | $80.800 | long |
| 2017-07-14 11:21:29 | AAOI | buy | $82.920 | long |
| 2017-07-14 13:35:10 | AAOI | sell | $84.410 | long |
| 2017-07-14 14:38:50 | AAOI | sell | $86.080 | long |
| 2017-07-14 14:45:33 | AAOI | sell | $85.580 | 0 |
Comments
Emilie_BOWS
There were a lot of things that made the case for going long.
The short-term momentum and price action are important. Yesterday it gapped up and held the gap which could be a breakout leading to new trend. How would you feel if you hold a short and wake up to a gap to new high ? It also attempted to go over $80 yesterday. Today it confirmed that it could go over $80. Once it did that with strong momentum, many shorts would have to cover as $100 suddenly became imminent. I can imagine many bulls who were already long would start thinking about $100 and not likely to sell out. There could be new bulls getting in too. So basically both bulls and bears wanted to buy rather than sell. Did you see all the dips got bought up so fast ?
The overall market sentiment has been extremely bullish. Daily looked extended but so many extended tech stocks still went up and up recently. SPY and QQQ were strong today which helped too.
VinnyB
Thank you for your thoughts. You are right - when you combine all the factors it is easy to still make the bull case.
Are you looking to short these tech stocks like NVDA and NFLX due to their extended charts or do you think they will consolidate and then breakout?
I am thinking that perhaps a day or so of selling to take profits but earnings season is coming again so there may not be much action until after earnings are up.
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Hey,
I saw all these trades today but didn't take them due to it looking extended on the daily chart. What gave you the confidence to try the setup anyway? Momo name, high short interest, and very good fundamental catalyst?
I've learned recently how things can go further than you think (in either direction) and as long as there is a valid intraday setup it's fine to take.