Well my overnight short of CWTR worked out. However, chances are this was largely influenced by the overall tankage of the market this AM. The Correlation Calculator showed that CWTR is 72% correlated with the DOW, so as futures were down this morning, I thought things looked pretty good. However, the Market Kid did have CWTR as a possible coiling breakout, which still might happen going forward on a strong overall green market day and the stock breaks out decisively past $3.
This morning I was obviously watching CWTR closely. It gapped down as I thought it would and sank to a low of $2.76, but bounced up. I put in a limit order for half my shares and got filled at $2.80. It quickly whipsawed up to over $2.90 and sold the rest on the next dip and got out of my 800 shares at an average price of $2.83. I know in real life I might not be able to exit (or enter) a trade at these prices, so cash trading results may be way different than this. TOS Paper Money fills your orders between the bid and ask, and this stock at times had a wide spread. This was the first time I scaled in and out of an order, and it worked in this case locking in some of my profits. This was a $125 paper profit with commissions factored in.
I haven’t been ruled by fear this week, so that is great progress too. I wanted to make more trades this morning, but I wasn’t convinced by any of the set ups I was considering. I was thinking about playing some gap down bounces potentially with DDR, C and GGP, and while there ended up being small possible scalps on those, the overall market was really dropping and C and DDR both broke the $5 mark mid morning so these could of been dangerous as long plays unless your timing was perfect. Also looked at DXO as a short when it bounced back up to $2.84 but I didn’t pull the trigger. With time I will be able to shift gears more quickly as the market changes. In early January, we had swung to longs and breakouts being more lucrative. Early this week things were trading in a tight range, and this morning was a shorter’s dream.