Trying to profit on the falling knives (oversold stocks & huge pullbacks).
Monday, December 24, 2012
Trade of the day, KITD!!!
KITD was pretty much a no brainier today. It got halted for over a week, and after it re-open sellers took control trying to unload their shares before the weekend. Now today and probably for the rest of this week, shorts are going to be covering. I then decided to take advantage of some of the short covering today and went long 5000 shares at .22, five minutes after KITD open to try and catch some of the dead cat bounce. Plus, I placed my stop at .19. Sold it at .275, ten minutes before the close because I wasn't going to hold this bag over Christmas. It was a $275 profit using just instinct and common patterns I always see on certain sequence of events. 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 stocktwits or twitter @tradermike9.