It Only Takes 1 Right Trade a Day to Make your Day

WAG

Above an ideal short setup is displayed. WAG boosted HUGE from the opening as you can see, but it did lose its breath and that is where the opportunity for a short came in. A stock like this is very hard to catch in the morning, LOOK at what it did, it went almost 90 degrees UP, the bars are so long which don't really create the right environment to long unless you really know what you are doing. But once it relaxed, reached its peak and started to break down again I saw an opportunity. Key thing to remember: Always wait for confirmation of the stock getting weaker, in this case it came down from its break, relaxed for a bit, went sideways (which is a sign of weakness) and then finally it broke down. It did however react very late to the market breakdown and that is what pissed me off the most.

SRPT

The chart above of SRPT displays what NOT to do when trading. compare how clean the WAG setup is compared to the SRPT. This is just disgusting because there is no SETUP. How could I even break my rules and long at $34.00? Well, I honestly did it because 34.00 was a good support area that I thought I could long at hoping the stock would not break through, now that is a good idea, but that idea is nothing without confirmation. There was no base to prove that this stock could potentially sit at 34 for a while, do a little drama and then shoot UP. I longed the stock and it went off the cliff and did some epic V shape formation as you can see. This was a shit play, I was lucky that I did not go in heavy on this and saved myself from a massive loss.

LULU

Lululemon is just nasty, look at the graph on the left first of all. This bad boy had a massive gap down, the gap down is so massive that LULU could not even fill it today it just broke down. Initially in the morning I anticipated LULU to fill a bit of the gap and I wanted to let LULU ride up and short around 65.00 - 65.50 price level, but it showed a lot of weakness and never really went that high, so I thought whatevez lets see what it can do once its under 63.00. So I grabbed the short at 62.99 because I wanted it to print below 63.00 to confirm the price is acceptable and it has some downside potential. Well overall it was a good play but did not end up making me any money. Crazy stock, play wasn't in my plan but I am happy did not lose any money either.