Today was great because I exercised last night, completed a ton of real life work this morning, paper traded in the afternoon into the close, and then got a couple hours of home projects done. It was nice life balance for a change and I got the chance to check out the PM market action. I wasn’t indecisive either, but was cautious as I wasn’t very familiar with the way things look in the afternoon. It wasn’t clear if there was going to be a EOD rally or swoon.

I did enter one position at 3:57pm. CWTR had gained over 11% on the day, hitting a key resistance level in the $3 range. It had failed to maintain this on three other times in the last week, and had also gapped down a bunch of times in the same period as well. So I shorted 800 shares of CWTR at $3.03. At the time, I did not run Johnny Vento’s Gap Stat Calculator. This showed that over the last 105 days (I believe), when the stock gained at least 10%, on the day after, on five occasions it gapped up, and three occasions it gapped down. So this stock tends to be a gapper upper when it rises this much in one day. The other problem is that when a stock hits a resistance level for the third or more time, it often breaks through it. We will see – the stock dropped $.04 to close @ $2.99 for a unrealized profit of $36 so far. In afterhours it traded as low as $2.92 and closed at the same price as market hours, so it looks like its heading down.