Wednesday, November 7, 2012

Trade of the day, VVUS!!!

 So I was pretty much hell-bent on catching a Dead Cat Bounce on VVUS today. The market was selling off  everything in all sectors today and VVUS wasn't immune to the sell-off either. I didn't want to fight the markets, but VVUS had a high short interest and it was getting close to a support level around 10 from late February this year. Its' probability of bouncing today seem like about 90% if the market wasn't selling off so much. I went long first at 10.85 on a 1000 shares after a reversal hammer formed, but got stopped out almost 2 hours later. Right when I was going to just forget about this stock after my .11 point loss, it formed another reversal hammer 10 minutes later. So not even looking at the volume on that hammer and the market sell-off, I just decided to jump into 1000 shares on the next 5-minute bar at 10.75 and placed a stop at .03 points below today's lows of 10.60. I left my home right after that and decided to go out and eat for lunch not caring if my stop got hit or not, but when I came back a 2:00p.m I was very excited it finally started to trend up a bit. After it broke through 11.15 I was going to sell it on the next 5-minute bar that closes lower than it opened. Sold the stock at 11.18 for a .43 point gain. Calculations {(.43-.11)*1000= still gain a$320 profit} when the market/DOW closed down over 300 points today.
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.

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