+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.