SE Trade on Mar 4, 2024 09:32 from lateralus014: Tradervue User Stock Trades.

Thesis: I'm kind of neutral, but learning short just because it pulled back so hard from the premarket earnings high. Was wanting to wait for break lower + pull in, a rejection of higher levels. Also planned for a continuation higher. The way that it was trading in a range at a previous daily resistance level felt like there might be some people who just want to get out for a small win, rather than being super bullish.

EPS

Reported

0.041

Estimate

-0.059

Surprise

0.10 (169.83%)

Revenue

Reported

3.617B

Estimate

3.571B

Surprise

45.173M (1.26%)

Guidance

Setup: Short breakdown of opening range, add on lower lows.

ATR: 1.80

RVOL: 1300% open, 600% EoD

AVD: 7.73m, 1.6m traded @ 9:00a

SF: 4.3%, not indicative of a Day 1 squeeze

The Good:

This trade was profitable, and didn't give me too much grief @ the open. First entry was small risking HoD, secondary was better, still risking HoD, last entry was a breakdown of first few candles lows, really nice entry on the 2 and the 5 for entry 3.

I took profits out as they came, I did not expect such a vertical drop. I exited at a logical spot on an extreme down move + big volume candle, and I was pretty overall happy with the trade.

The Bad:

Not a super BAD thing, but the exited were not very 'reach for the stars' type of exits. Very conservative, scalper exits, and we left a lot on the table. This isn't exactly terrible, but we have been wanting to focus on - short break of lows, exit on break of highs, and we didn't do this for any exit on this trade. The 2 minute chart did show a slight retracement, on volume, so we did notice but didn't feel comfortable adding as volume was higher than we'd like to see on a retracement. That being said, after the 2 bar pop, it just got destroyed, erasing a 12% gap in 30 minutes. Last exit was great, other exits were subpar.

The Ugly:

Not much ugly here, again just very inefficent on the exit plan. Our notes showed we wanted to get short if there was a pop, failure to go higher, and a breakdown lower, especially of open price, but we didn't take big profits, and we didn't add at the break of OPEN price. We actually took our first exit at the OPEN price, just due to nerves I guess. Nothing truly ugly, just lessons to learn from here.

Where I can improve in the future in a another similar setup:

I can improve by exiting based on price action, not predetermined exits. I believe we noted as it was breaking down, with 25% of the position left, we should wait for a break of prior 5 minute bar highs to get flat, and we still exited early. So lesson being - hold on until there is a reason2sell, and be clear on it. If we aren't crystal clear, we are going to take exits that we maybe regret later.

Repeatable (Y/N):

Yes. very repeatable.

Small pop off the open, followed by 5-10 minutes of indecision, breakdown off VWAP, and then breakdown of OPEN + low of the day. Leftover buyers at the open might provide support, is our thinking, in this case they got ran over, and exited breakeven/small loss. Long traders in the opening range are exiting at the break of lows, so this works in our favour, and is a spot to get more short if anything.

Very repeatable, review later.