Trying to profit on the falling knives (oversold stocks & huge pullbacks).
Friday, November 16, 2012
Trade of the day, DVAX!!!
I wasn't going to trade DVAX today because it looked as though I already missed the bounce for it today in the pre-market when it went from about 1.91 to 2.40. Since I kept getting stop-out on TZYM earlier today I decided to look for a good entry point for DVAX at around 10:30p.m est knowing it probably won't break today's low of 2.22 with all of this volume holding it up. Went long 2000 shares @ 2.30 when it kept testing the intraday support level of around 2.30. My first stop was at 2.19, then I moved it to 2.30 after it broke through the 2.40 price range. Figuring that there might have been a lot of shorts in this stock I decided to hold it at least 15 minutes before the market closed hoping they'll start covering, and to my surprise it looked like the shorts started covering after 3:00p.m est and then day traders who were in here started selling at 3:42p.m est. Sold when a huge shooting star candlestick pattern formed at 2.49 for a .19 point gain. If you want to see what I might be trading during market hours and interact with me during my trading days, just follow me on twitter @tradermike9.