CAT
Daily + weekly breaking down and initial downside move happened premarket despite Ok earnings.
Here's the plan:
Get short into the spike at the open at around 79 with target being lod(76.75) .
We are protected by 79 round # , 50%fib retracement(79.13) , 50MA(79.05) & previous day low(79.15) .
Give it a 22c risk and you should be safe.
Sit back...
CAT
Daily + weekly breaking down and initial downside move happened premarket despite Ok earnings.
Here's the plan:
get short into the spike at the open at around 79 with target being lod(76.75).
We are protected by 79 round #, 50%fib retracement(79.13), 50MA(79.05) & previous day low(79.15).
Give it a 22c risk and you should be safe.
Sit back and watch...
Massive earnings beat breaks daily trend significantly.
Here's the plan:
Let the initial spike happen
When the pullback comes, get long against vwap with hod as technical target
While everyone is trying to short a stock up over 100% on day 1 , try to catch it long on a pullback with descent R/R instead.
All early shorts might get squeezed in their early attempts and help lift the stock even more.
Notice that this works particularly well on low float stocks once their whole float "rotate" inside the trading session.
Also notice that...
Remember that its easier to join the trend rather than fighting it.
To play long (with the trend in this case) on a positive news release:
make sure enough relative volume came in on the initial spike
let it pull back to vwap then buy it with high of the day as potential target only if the risk/reward makes sense (3to1 at least)
