12/28/16 Recap

+1284 today on GALE and KATE.  It has been a good start to my week so far.

GALE was my morning play.  I shorted into the para with 3.60 o/u as my risk level.  3.60 turned out to be the exact top.  I covered into the pull below VWAP.  My mistake here was locking in my full position when I did.  I let my P&L influence this decision.  It looked like it was going to reclaim the VWAP so I covered the rest.  I did not want to risk having to cover the other half at break even if it bounced to my average.  I wanted all the gains!  I should have been looking to add back on a pop, not cover it all.  I point this out because this is one area I am trying to work on.  Locking in some then looking for places to add for further downside when I am positive on a trade.  At the very least I should have held on to 1/4.  These types of morning low float gap and para’s are my bread and butter shorts.  They usually die or find a price to hover at all day after failing and breaking below vwap.  I know that, and I still did not hold a piece.

KATE was another good play.  I went in short with 18.40’s range as my risk based on the daily chart.  I was not looking for a homerun breakdown of the intraday chart on this short.  It was just too strong imo.  Not the same type of play like GALE where I would look for it to really break down.  What I wanted was a pull toward VWAP.  I wanted to cover the first 1/2 in the 17.50’s and the rest near VWAP.  However, once it looked to base in the low 17.60’s I took 1/2 off.  It really started to hold so I took the rest.  I was really happy with how patient I stayed on this before getting in the trade.  I resisted the temptation to short on the test of HOD.  I wanted higher and figured it had a good chance of breaking the high.  Sure enough it did break those highs.  All in all, I am happy with this play.

 

 

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