I missed all the good trades on the market panic but I live to fight another day.
Daily profit: $835.60
A new strategy of mine: playing bounces after huge panics. +$4 on two trades so far. Recent bounce plays I’ve attempted:
POSC – bought at low of .102, sold at .1075 (oops)
PDGO – Bought well at 1.44, sold half at 1.525, sold rest at 1.349. Lesson: risk is much higher the less a stock has dropped. My identification of where it would bounce using level 2 was correct, however.
Trades:
+ BOT 2,500 AMEL false Stock 1.579 USD ARCAEDGE 08:51:15 12.50
+ SLD 5,000 LEI false Stock 2.600 USD SMART 09:43:14 25.00
SLD 5,000 LEI false Stock 2.6100 USD SMART 09:43:20 25.00
BOT 5,000 LEI false Stock 2.5200 USD ISLAND 09:44:57 25.00
+ BOT 5,000 LEI false Stock 2.496 USD ISLAND 09:45:54 25.00
BOT 5,000 LEI false Stock 2.3300 USD SMART 12:51:15 25.00
+ SLD 5,000 LEI false Stock 2.360 USD ISLAND 12:51:38 25.00
10:14:05 PDGO B 1.44 1000 ETMM
10:14:05 PDGO B 1.44 1000 ETMM
10:15:35 PDGO S 1.525 1000 NITE
10:17:09 PDGO S 1.34 100 NITE
10:17:14 PDGO S 1.35 900 NITE
Disclosure: No positions in any stocks mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.
What did you see on the L2 that allowed you to predict the bounce?
Just there were a lot of market makers on the bid and very few on the offer. It also matters which market makers were where.
what market makers do you speak of?
yeah, gotta be careful with that strategy Reaper… ask buyers of ITMN at 50%, 60% and 70% drops in AH… CLRH another – NO intraday rebound.
Well of course you have to be careful. But there are crazy profits to be made: look at WAMUQ and RMIX.
do you have a scan for finding those PANIC drops, how to find
them, where they pumps you were watching? thanks
another question for your mailbag- if you know a stock is going to drop nicely, (Its a supernova pump, you dont know today or tomorrow but …)what do you watch for on an intraday chart, im always afraid to get caught too late. I would be indebted to you for an answer! is there a pattern?
another question, many of the stocks that are discussed chart badly on ameritrades Strategy desk, occasional candles and slight specks appear, terrible charts to look at and make decision,i know i have to move from ameritrade but what charting is good for these stocks,
i hate to waste time downloading and trying new chart packages! thanks