No really sure if this is a true e=pennant or if it's just going flat like last summer (highlighted)
Kinda surprised it finished flat on a day the market tanked, not sure if that's bullish or just part of the whipsaw.
Indicators all flatlined as well.
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I think the reason why this didn't tank is because it didn't participate in the BS rally last week.
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Looks like it's going to break downwards from the pennant, I don't recommend going long until next week.
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I've traded PCAR enough that I'm pretty sure today was a fake reversal. Bearish for tomorrow.
I don't trade PCAR options much, but if you do, check out the comments section.
Also, PCAR for whatever reason has a tendency to follow through on the previous day. Note how it went green on a day the market gapped down and red on a green market day, lol. Usually only lasts 15 minutes or less, but something to watch.
You didn't buy a bunch in Pre and dump right at open did ya? 🤣 Because it looks like someone did.
hungry_hippo
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@BoomerMo, no I bought yesterday afternoon and dumped right after open. I didn't expect Europe to tank. Made a couple hundred, that's all.
For future reference (this is true with other stocks, especially low volume stocks) you need to watch the bid and ask at open and let the bid catch up. There have been days where there's a significant spread between bid and ask for 5 minutes, on low volume stocks I've seen the spread stay big for 30 minutes, especially after earnings. Today the bid went up quick, sold about 30 sec after open.
BoomerMo
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@hungry_hippo, Oh, that's interesting stuff! What are you meaning with "big spread"? Are you talking about the difference in bid/ask price or the difference in volume between askers and bidders? And by how much? 4 cents, 10 cents? More? I've seen difference in volume on ask/bid by thousands one moment, and dozens the next, so I'm guessing you're not actually talking about volume differences?
hungry_hippo
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@BoomerMo, yes, difference between bid and ask. For PCAR options, it can be bigger than $1 at open because they're monthly, that is why I said watch. You have to do a limit sell, and hope someone buys it. On up days you can get lucky (I have, lol), but on down days you're almost guaranteed to take a loss. Even right now, after the market stabilized the spread is .15 cents which means PCAR has to move 30 cents or so just to cover the spread. So I rarely trade PCAR options unless it's one of those days where it tanks $2 with a gap.
For short term and day trading options, you want to pick options where the spread is small and you can just sell at the bid. Remember.... Easy Money.
Also, you can see why I like to trade PCAR in my retirement account, I made 100k mistake yesterday afternoon, if I had bought SPY I would have lost $500 on the gap alone. PCAR bailed me out and I came out with a gain anyways. So not really a "mistake" but I could've done without the overnight heartburn.
When I guess the wrong way on the market, the stock bails me but more often than not. That double gap in March though, that one caught me by surprise.
hungry_hippo
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@BoomerMo, don't go long on PCAR until next week. This reminds me of last May or July...
@BoomerMo, one other thing.... take a look at PCAR options tomorrow at open, and you'll see that the spread between bid and ask stays big for 15 minutes. That's why I don't like to trade PCAR options, on a day like today you take a loss from the spread. You can't bail out of options on open. A lot of stocks are like that, even heavily traded ones like SQ. Same with PDD. Stuff like XLF and GM have small spreads even at open, those are the ones I tend to trade.
Also, remember how I keep saying how I trust PCAR more than the indices? Indices gap down, PCAR fills gaps more often than not, so I got to keep yesterday's (small) profit, lol.