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Mid Day Market Recap on Solar Trades in our Online Trading Room.


Mid Day Market Recap on Solar Trades in our Online Trading Room.


Great trading today everyone! This was a really fun day with a very high % of accuracy. It feels good when the market cooperates!! Congrats to everyone that locked up money today.

 

 


CELG was a fun one today! The stock was surging up this morning on news that they are buying out RCPT. Shares of RCPT were trading flat today at 228 but shares of CELG were surging up.

 

I took a short position at $135 and covered on the move down to $134. On this trade I was never down more than 10 cents from my entry. It was pretty much an instant winner. That’s what we like!

 

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We had a few great trades today on $TWTR and $ESV. This morning news came out at 11:39 that Twitter had received a $31 billion buyout offer. The article was posted on a site that closely resembled Bloomberg. CNBC reported that Twitter was in talks with bankers regarding the buyout offer, but retracted the headline a few minutes later after it was apparent that the headline was fake the the website was not associated with Bloomberg.

A Similar Event with Avon

This is almost exactly what we saw happen last month with shares of Avon. The stock spiked up suddenly on an article of a buyout and then quickly came back down as investors realized it was a fake headline. In the case of AVP (Avon), I bought shares and then the stock suddenly spiked up 10% and was halted on a circuit breaker. It appeared the stock was going to be opening significantly higher but during the halt the news was released that this was a fake story, and suddenly shares began to slip. It ended opening about flat and then dropping quickly.

Take the Short Position

Remembering this recent trade on Avon, as soon as I heard the website that posted the article was a Panamanian company and not associated with Bloomberg I shorted 1k shares with a 40-50 cent stop. I trailed my posting as shares quickly dropped from a high of 38.82 back down to 36.55. This pop and drop is the type of mid-day volatility that allows traders to profit on both sides. I locked up just under $500 within minutes of the story being released.
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Shorting $ESV off the Doji Candle

I found $ESV on our V5 reversal scanner. It was surging up with 5+ green candles in a row. On the first candle to form a doji I got short with a 10 cent stop and a 20 cent profit target. This was a simple 2:1 profit loss ratio. I covered on the move down and locked in a really solid winner. We are focusing on finding some slower moving trades that are easy for all the traders and students in our room to follow and trade. ESV was a perfect example of this type of trade. It was a relaxed reversal off the top.

 

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Opening Range Breakout trading on MBLY and Reversal Trading on MKTO