I came in today long Clinical Data, Inc. (CLDA) based on takeover chatter. The futures were gapped down 16 handles. It’s funny. I finally get involved with a buyout that ACTUALLY HAPPENS and wouldn’t you know it? It’s a take under. A TAKEUNDER!!!
So I was down a little over 1300 on that position and all I could really do was laugh. I mean, what are the odds? Reports had it going off at $45-60. So that set my morning off to a negative tone. The market has been opened for about two hours right now, and I have yet to make a really decent trade.
Fonar Corporation (FONR) has been a decent long all morning off of earnings, but I have really overtraded it. Molycorp, Inc. (MCP) got an upgrade this morning and it was really strong out of the gate. But since it hit high’s of $47.88 in early trading it has done nothing but come in since. So currently, halfway through the day I am down about $1500. I have to really look for a decent trade setup this afternoon.
There are many different avenues I could take. I can look at Netflix, Inc. (NFLX) short on bounces. It keeps getting to about $228-229 and falling. So I will look to get short on any bounce into the $227-228 area with stops around $229.40. Keep the size small and so far this trade would have paid off nice a few times.
I can also look at MCP one of two ways: long off the low of $46.11 with stops on a break of that level, or short through the lows. That seems to be where I will focus my afternoon. I’m also looking at Ecommerce China DangDang (DANG) on the short side through $25. If it breaks there I think it has a shot to see IPO lows of $22.57.
Today’s trading lesson is simple. I mentally took myself out of the game on the “takeunder” of CLDA. You can’t do that. I am down today, yes, but only because of that position. I need to get my head clear and know that there are trades to make. I will let you know if I am able to get green today. Good luck trading the rest of the day.
*DISCLOSURE: Long FONR; Short DANG
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