I really thought it was going to fail at the wick at the 15th minute mark but it was strong throughout the day. I was trading in the direction of the trade (the stock gapped down) but this quickly reversed. I wonder if this can be a tradeable bounce in the future but I don't know what the trigger was and all that. I was thinking since it failed support at the open it would continue to go down. Hmmm.
Good thing this was just a simulated trade as I'm still trying this out.
So this morning, I'm still scanning stocks that are showing some nice volume at the open with a decent opening range.
I flagged Kandi as I feel like it has been in some consolidation for a while now and then now it is showing good volume and the range is more than double the past 10-days average. I don't know what the news is but the intraday structure looks decent, formed a new high.
Let's see what happens with this. VCTR and BPMC are kind of similar to DESP in that both stocks gapped down and are showing some strength. I'm keeping these two in mind but not going long the stock until I find some pattern that I can use to trade with.
My DESP position is still under water, it could have been a good long but nope. For now I am enjoying this process of looking for "stocks in play" as I borrow it from SMB Cap. Although I don't think these guys are in play they're just showing really nice volume and volatility. Two things that I need to trade.
The only limitation that I see is that I am only "on" on the first 30 min to an hour of the trading session, and so I have to make a decision on the price discovery phase of the stock...and "hope" that it will continue in the direction I want it to. I'm still trying to understand how the "overall" market, as represented by the SPY, will fit into all of these things. Right now I don't have an opinion on the SPY because it has entered a medium term range, and I guess from here anything goes for now. So I don't know how that will help me with the trades that I'm doing now.
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