I came in very bullish this morning on Sodastream International Limited (SODA). The setup is there, and the chart is screaming long. It displayed incredible relative strength on Friday, finishing up 0.71 cents on a day that the market was down almost 200 points. So here I am long a little pre-market. I added at the open and was up about 80 cents in my position.
The question I kept asking myself is, “is this where it rips, or should I take some off”? As of this writing, I should have sold most of it over $41. I wound up going from up 1500 in the trade to down 700 by the time it hit new lows. Was that the right trade? Maybe, maybe not.
It was one of the few times I had very strong conviction in a trade. There was even a little pick up in volume on it. Alas, SODA is a fast and volatile stock and it went from its high’s to its low’s in basically two 5-minute bars. I did not get hurt too bad on the trade and as I write this I am still holding it. I truly think that we should get a move above all time highs of $43.88 today or tomorrow. Time will tell on this one.
I also was a believer in Puda Coal, Inc. (PUDA) this morning considering the strength in the coal sector off of the Massey Energy Company (MEE) buyout. PUDA hasn’t moved all day. So currently I am sitting here with two whiffs in my first two attempts. But one thing I do realize is that its only the 3rd inning. Just because I struck out twice so far doesn’t mean I wont be able to come up with a few big hits in my next few at-bats.
If SODA doesn’t work the first time, come up again when the set-up is better and swing away. Same with PUDA. It’s early, the stock is not really doing anything. THAT DOES NOT MEAN THE TRADE IS OVER. It’s the trader who has the best stick-to-it-iveness that wins the game. If these stocks work, you can bet I will be in them. Just because I am currently 0-for-2 on my plays doesn’t mean I can’t finish the day 2-for-4! Good luck trading the rest of the day.
*DISCLOSURE: Long SODA
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