Learning to Day Trade - Part 16

Shorting Failed Breakouts / Resistance

Lately the market has been really weak so shorting failed breakouts can work better than usual. Today $IMGN was getting really close to a $10.00 / $10.04 break but just couldn’t. It got really close but then rolled over. This is similar to shorting bear flags but the risk (resistance level) is much easier to notice.

I’ve marked the two short entries that could have been taken. The risk is it taking out $10.00 resistance (~10c) which is pretty low risk since most stocks were red that day and 3/4 stocks follow the market. If you’re wrong and it takes out $10.00 then you should flip to a long position and ride the breakout. You’ll lose a little on the short but make it all back plus more (hopefully) if it starts moving up.

The end result was incredible on this - from $9.90 down to $8.35.

$IMGN 1 minute candles

Even the 5m doesn’t show any strong bounces until it got close to the market close.

$IMGN 5 minute candles

$IMGN 5 minute candles / multiple days

(white line = previous close, aqua line = VWAP)



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 02/05/2018

Selecting Stocks and Analysis

If the markets continue to trend down I may try trading $TVIX. Knowing my luck I’ll be a day late and the $SPY will gap up.


$CAPR

Breakout over $2.29. It broke it during premarket so it seems strong. Lots of buyers and sellers though. Could get stuffed.

FDA grants lead drug CAP-1002 regenerative medicine advanced therapy (RMAT) designation

Float: 13.48M
Short: 11.26%

$IMGN

Watching over $10.00.

Float: 149.55M
Short: 8.08%

$CANN and $POTN

Two OTC stocks that have been bouncing lately. Watching for big panics.

Watchlist Review

Both of the OTCs were a bit choppy and didn’t have a big enough panic for me to try and buy.

$IMGN had a nice dip to $9.50 but was choppy. I waited for it to break $10.00 but it just couldn’t. If it breaks out tomorrow that should work better since having one day or more in between usually helps. I don’t like buying the break of the previous day. It feels like it’s too soon and isn’t meaningful.

$PIRS broke out on barely any volume so I didn’t buy. It went for a bit but I can’t trust it.

The market was a bit stronger this morning but I didn’t really see anything that great.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 02/02/2018

Selecting Stocks and Analysis

Yesterday was pretty bad so hopefully it does not continue.


$QNST

Nice earnings run yesterday. Over $11.00 was a perfect breakout. If I had known that I’m still not sure I would have traded it. Not seeing any overhead resistance so it could keep going. Should have some support at $12.45, $12.15, and $11.15.

Float: 39.12M
Short: 1.59%

$BSPM

Never holds its gains but it is a breakout over $4.20 if it can get there again.

Float: 1.96M
Short: 5.50%

$IMGN

On watch again for continuation. It did break the high of the previous day but only by a few cents. Potential buy if it can get over $9.56. I’d much prefer it to get down to $9.00 again for a dip buy. It’ll be the third up day if it can spike.

Float: 152.96M
Short: 7.90%

Watchlist Review

Everything was extremely weak today. I saw $SN have a huge panic and started to bounce thanks to my ToS reversal scanner. It bounced a little but not significantly so I got out before it rolled over. Some weed penny stocks bounced today but I was too slow and couldn’t get executed on them.

I watched $SN a bit longer and it rolled over more so I was right about it not bouncing and it being weak.

$SN 1/5 minute candles



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

thinkorswim - Reversal Scan

This custom scanner will look for 3 consecutive red candles in a row along with an RSI below 20. It has not yet been tested during market hours, but that’s something I plan on doing tomorrow.

It will definitely need to be tweaked and possibly a “RateOfChange” study will need to be added. At the moment it is picking up two stocks at the close but they are not even down more than 2% in 15 minutes. It should only pick up stocks that are crashing hard and down more than 5% in a short amount of time.

Simple Reversal Scan

1
close is less than open and close from 1 bars ago is less than open from 1 bars ago and close from 2 bars ago is less than open from 2 bars ago and RSI("average type" = "SIMPLE")."RSI" is less than 20

Watchlist - 02/01/2018

Selecting Stocks and Analysis

Trader Workstation now has intraday VWAP! I compared it to thinkorswim and it looks accurate.

I wrote a few custom scanners for thinkorswim that look for 5 red/green candles in a row plus an overextended RSI. This is for trading reversals, and if it ends up working I’ll write a post about it.


$AVGR

Still on watch for a possible squeeze in the morning.

Float: 30.10M
Short: 9.77%

$SKLN

Terrible long term chart. Support at $1.25 and $1.12. Resistance at $1.50 and $1.72.

Float: 5.95M
Short: 12.37%

$IMGN

Support at $9.07, $8.87, and $8.53. $8.84 is the breakout level from half a year ago.

Float: 152.96M
Short: 7.90%

$OPGN

Reverse split a few days ago.

Float: 2.02M

$LTBR

Has an ATM. I’ll see what it does but probably won’t trade it.

Float: 9.02M
Short: 7.27%

$ATOS

Still going strong. I’ll watch it for dips to buy. Should have resistance at $1.00.

Watchlist Review

Really easy dip buy opportunity on $IMGN but I didn’t take it.

$POTN had a huge panic to 0.48. I figured it would hold 0.50 or so since a lot of the time it bounces near round numbers.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 01/31/2018

Selecting Stocks and Analysis

State of the Union was yesterday night and the market sold off. There weren’t any big gainers from yesterday that looked good.

Trade Ideas has a free chatroom that I signed up for. I’m interested to see what type of stocks are alerted.


$AVGR

Reverse split. These can get pretty volatile.

Float: 30.10M
Short: 9.77%

$CMCM

Tends to have big moves. Resistance at $17.00.

Float: 12.00M
Short: 43.96%

$WATT

Insane day yesterday but it’s a bit higher priced. I traded it before and got faked out on a breakout that later worked.

Float: 16.29M
Short: 36.09%

$ATOS

Resistnace at 0.69.

$AMD

Earnings yesterday after the close. I watched it after hours and it seems like the way to play it is to wait for earnings to come out and dip buy near a whole number after a huge panic.

Float: 924.57M
Short: 19.02%

$POTN

Again, still holding up pretty well. Watching for big panics to dip buy.

Watchlist Review

$POTN had two fake outs and I couldn’t get executed on either. It seems a bit weak now.

I traded $CMCM when it broke over $17.00 but had to stop out when it started fading. I got faked out and took a loss. It could have easily been a winner. I’m not sure why my winning percentage is terrible this year. I’m not really seeing stocks making moves that are easy to hit.

$CMCM 1 minute candles

I was in the free TI chatroom most of the day. It seems pretty useful. It’s a mix of alerts - some < $1 stocks and some higher priced stocks. Basically anything that is moving and has potential.

Barrie announced that he went long on $IMGN. I didn’t follow the alert even though it’s a whole dollar break setup that I like. However, if I had seen it near the open holding the high of the previous day that entry would have been a great dip buy.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 01/30/2018

Selecting Stocks and Analysis

Not seeing a lot during premarket so the watchlist is kind of weak today.


$IMMY

Terrible long term chart. Since it’s a biotech I’m guessing it will dump at the open.

Float: 18.94M
Short: 5.13%

$ATOS

Looks to have support at 0.55 and 0.52 with resistance at 0.69.

Float: 32.1M

$POTN

Still hanging on. Watching for huge panic to dip buy.

Watchlist Review

$POTN had a nice dip but that’s all I really liked. Market seems pretty weak. $SPY sold off near the open and most of my watchlist is red. $MARK would have been a great short on the bounce but it’s so choppy and sometimes it’s hard to figure out what it’s going to do. If it can bounce back to $10 later today maybe I’ll short it.

The sell off is more than likely because of the State of the Union address tonight.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 01/29/2018

Selecting Stocks and Analysis


$AEMD

Breakout over $1.75. News doesn’t seem that important but it is up premarket slightly. Not sure about it so probably won’t trade it.

I think they screwed up the year in the PR title.

Aethlon Medical to Release Third Quarter Fiscal Year 2018 Financial Results and Host Conference Call on February 1, 2018

Float: 12.12M
Short: 10.79%

$DPW

Ran right into $2.54 resistance during premarket.

Float: 11.93M
Short: 19.01%

$NBEV

Breakout over $4.24.

Float: 14.30M
Short: 10.96%

$MYSZ

Watching over $3.00 with a target of $3.50. Not seeing any recent news.

Float: 12.97M
Short: 7.93%

$POTN

Watching for huge panics to dip buy. I need to practice dip buying OTCs and actually getting executed for once. Every single time I’ve tried to dip buy an OTC I have never gotten executed but each time I was right.

$EMHTF

Watching for a breakout or a huge panic like $POTN.

Watchlist Review

A few of my alerts went off today.

Tried dip buying $POTN at 0.72 but my limit price was too low to get filled. I almost tried again later at 0.63 but there was so much selling and huge orders on the level 2.

$AEMD broke out but I didn’t like the price action. Low volume and a wall every 5c higher.

I watched $MTBC get up to the breakout level near the open then roll over to $4.05. I patiently waited for it to grind back since $4.45 is a multiday breakout. I bought and it started struggling with $4.50 as there were some large orders there. I got out for a small loss when it started failing. It actually ended up dipping a little then breaking the high again. This one seems kind of choppy and the moves aren’t easy to catch. I’ll just leave it alone since it’s almost noon.

$MTBC 1 minute candles



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 01/26/2018

Selecting Stocks and Analysis


$FORD

Seems to be a bit choppy now but generally follows support lines pretty well. I’ll see if it can drop again to $2.75 or $2.50. Breakout over $4.45 if it really goes.

$MNKD

Monster move yesterday. It setup for an ABCD pattern in the morning but I was in $POTN and didn’t even look at $MNKD again until late in the day.

Float: 104.41M
Short: 31.12%

$ITUS

Big morning spike yesterday. Support at $6.00 / $5.90 / $5.62.

Has an ATM in the 8-K SEC filing from 12/12/2017.

Float: 12.40M
Short: 11.69%

$TEUM

Has made big moves before. Resistance at $2.52 and $3.40.

Float: 19.21M
Short: 19.47%

$POTN

I bought the breakout on this yesterday and it worked perfectly. I didn’t even think about rebuying at the breakout level after I had sold. I’ve seen that work multiple times. I’ll see if it gives a panic to dip buy.

$EMHTF

Weed stock that just announced blockchain news.

Joint venture Cannachain Technologies would leverage blockchain technology designed to achieve unprecedented seed-to-sale provenance, safety and efficiency for the legal cannabis industry

Watchlist Review

Tried dip buying $EMHTF at $6.45 but got freaked out a little and canceled the order. I was completely right about the bounce. You have to predict the bounce almost and can’t wait for it to start moving back up.

Everything else was kind of choppy. There were some nice squeezes but I ignored them after since a lot of the time they just come right back down.



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.

Watchlist - 01/25/2018

Selecting Stocks and Analysis


$LTBR

Saw this starting to move after hours. I only noticed it because of STT. I missed the news scan so I wasn’t able to take a trade on it. $3.35 is the breakout level from a few days ago. Could have some support at $3.32.

Float: 11.32M
Short: 6.88%

$ITUS

My ToS alert went off yesterday since it was approaching a breakout level. I kind of wanted to short it initially since it was probably going to fail. It broke out by a few cents and I didn’t buy. It would have been an easy 30c winner. Currently no fresh news.

Float: 12.40M
Short: 11.69%

$POTN

Close to a breakout over $0.61. I’ll still only take 100 shares if it breaks out since it’s an OTC and I don’t have any experience with actually being in an OTC stock.

$HMNY

After it broke over the resistance near $9.45 it was a great buying opportunity. I’ll have it on watch since it seems to be volatile every day.

Shelf news just came out. I would be surprised if it had any spikes today.

Float: 17.16M
Short: 28.42%

$SGYP

Watching for a break of $3.00 at the open. Bigger float so not sure how much of a breakout there will be. $2.77 is a multiday breakout but it’s above that during premarket. Not shortable in IB at the moment. Insane resistance at $2.95 on BATS/EDGE.

Float: 233.29M
Short: 32.38%

$CARA

Huge move yesterday. Should have bought the 9:45 AM consolidation period with a risk of $15.50 - could have been a $1/share winner. There are a lot of bag holders in the $20 range and it hasn’t really had multiple big green days before so I doubt it’ll keep going.

Float: 31.01M
Short: 19.16%

$RMGN

Has previously made big moves but always closes low. Could be the first green day after a lot of red.

Float: 5.46M
Short: 0.49%

Watchlist Review

Didn’t see anything I liked until my $POTN alert went off and I saw it trying to break out several times. It finally did and I bought and managed to get executed instantly (ARCAEDGE). The breakout was 0.61 and I bought at 0.615. My sell did take a couple seconds which was kind of scary (MM). I know you have to get out before the crash otherwise you’ll be stuck.

I didn’t feel as nervous in this trade. Even though I took a bigger position, I still wasn’t really afraid.

$POTN 1 minute candles



Disclaimer

I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.