Trade Recap - IBIO
On Friday, I saw a tweet from @BlinkX90 regarding IBIO:
The daily chart told me shorts were (and probably still were) interested in this stock. Moreover, IB didn't have any shares to short IBIO--proof shorts were already pilled into IBIO. Therefore, I was long biased and the news that the US Government was warning makers of IBIO's Ebola drug ZMAPP to plan for production further supported a long bias.
I pulled up the intraday chart and noticed traders had already began reacting to the news and were bidding up the stock around 2:30 pm:
I decided to break my rules and join the momentum at $2.38 because shorts were pilled into IBIO, the news was great and was already attracting buyers, $3 magnet, Ebola stocks were hot, and IBIO was also nearing a MTF breakout--which would bring further momo traders and short covers.
Then I went back into stalk mode because I saw a tweet from @BlinkX90 saying the news was indeed legit.
I re-longed half size at $2.89 and full-size at $2.77--risking to $2.55. IBIO began to retest the highs and broke-out on huge volume. However, it couldn't go much further, so I sold half my position at $3.05 because that didn't make sense to me. I did keep the rest of my position to see if things would pick up into the close.
Recap time:
Strengths:
Weaknesses:
$IBIO EXCLUSIVE-US GOVERNMENT ASKS EMERGENCY DRUG LABS TO PLAN FOR PRODUCTION OF EXPERIMENTAL EBOLA DRUG ZMAPP Reuters
— Blink (@BlinkX90) October 17, 2014
So I pulled up the daily chart and noticed IBIO had recently ran from about 70 cents to ~$2.70 in three days! Then it pulled back hard, then started a dead-cat bounce:The daily chart told me shorts were (and probably still were) interested in this stock. Moreover, IB didn't have any shares to short IBIO--proof shorts were already pilled into IBIO. Therefore, I was long biased and the news that the US Government was warning makers of IBIO's Ebola drug ZMAPP to plan for production further supported a long bias.
I pulled up the intraday chart and noticed traders had already began reacting to the news and were bidding up the stock around 2:30 pm:
I decided to break my rules and join the momentum at $2.38 because shorts were pilled into IBIO, the news was great and was already attracting buyers, $3 magnet, Ebola stocks were hot, and IBIO was also nearing a MTF breakout--which would bring further momo traders and short covers.
Long small $IBIO on news, $3 magnet, and poss short squeeze.I sold half at $2.45 because I don't like buying spikes. I also wanted to lock in some profits and then look to add shares on any dips. But IBIO kept going and wouldn't let up! So I sold 1/4 more at $2.59, and then the rest at $2.73 because I saw someone tweet that the news was bogus--and I hadn't done any DD, so I thought it was better to be safe than sorry and lock in profits into this massive spike.
— Jory (@Cambro320) October 17, 2014
Then I went back into stalk mode because I saw a tweet from @BlinkX90 saying the news was indeed legit.
Stalking $IBIO for any big wash/profit taking/emotion. I want to dip buy into the close bc gap up potential.
— Jory (@Cambro320) October 17, 2014
$IBIO EXCLUSIVE-U.S. requests production plans for Ebola drug ZMapp http://t.co/6mSfF0tUNL
— Blink (@BlinkX90) October 17, 2014
I re-longed half size at $2.89 and full-size at $2.77--risking to $2.55. IBIO began to retest the highs and broke-out on huge volume. However, it couldn't go much further, so I sold half my position at $3.05 because that didn't make sense to me. I did keep the rest of my position to see if things would pick up into the close.
Out half $IBIO 3.05, bat for singles #MRockRulez Keeping rest for lotto gap play.After that stutter-step, IBIO took off! I sold 1/4 at $3.27 and the rest at $3.40 for a solid win!
— Jory (@Cambro320) October 17, 2014
Recap time:
Strengths:
- Solid thesis (great daily chart, shorts pilled in, momo traders watching, news = long bias)
- Sold half profits into the first spike once there was topping action
- Took the rest off in pieces (batting for singles but leaving some for maximum profits)
- Exited immediately when I saw a reputable tweet about news being bogus
- Re-entered with a partial position once the news was verified but down-trendline hand't been broken
- Sold position in pieces (bat for singles again)
Weaknesses:
- Should have entered full-size after the down-trendline broke, not before
- Should have used a little bigger size because my thesis had several pieces of consistent evidence and few pieces of inconsistent evidence
Comments
Post a Comment