Bought in at $2.87 then followed up with another buy at $2.97. I thought it would make another run like you said but it sold off after the breakout. Again another terrible close on a stock. We can't hold gains here. Closes in the bottom half of the trading range on strong volume. Monday should be interesting if we can get back above $3 and breakout above the $3.09 level.
Tell me about it..
Just the nature of the beast in this game..charts are littered with pullbacks that force exits right before the expected and profitable move.
So, although we can't explain the past or predict the future, we can be prepared for the present.
We accomplish this by preparing for a variety of scenarios when the markets are open.
1) CNDO opens 30% Higher: Should only happen ;-). If so, what are you prepared to do?..and when? You should be prepared(have orders in place) to lock in profits by the time it opens at 8AM..We like to give it a minute or two to see if it just takes off..If not, and it pulls back slightly, we'll usually stick some in their at the prior Pre-Market High..This is not an exact science..Our view is 20-30% usually is a nice place to take 1/2 profits..if not more(your call)
2) Opens higher but below Friday's high: We'll give it a moment or two and if it doesn't break the $3.20 high we'll take some profits.
The same can be said if it opens right below $3.10..we'd consider taking profits here too. The thought being that we can probably get back in if it should later in the day ;-)
3) It opens unchanged to a little bit lower: This one is tricky..As you observantly noticed, it closed in the bottom half of the range on decent volume. So, you absolutely have to protect yourself from a tanking. This one broke out above $2.80 so that's the area of interest on the down side. That being said, the interesting thing is they usually run patterns like this down to support to trigger stops, then buy them up and take out the prior days high..I sense that this is exactly what might happen.
I hope this explanation helps and appreciate your questions.
ST yes it does. One other thing will you take ideas from me that I am looking at? For example, I bought DVAX on Friday afternoon it broke out above $2 and closed (in the upper half of the range :). Looks like a move to $2.4 is likely now. TIA,
Write something about yourself. No need to be fancy, just an overview.