OK so - long story short. I was up 11k since last Friday, these last two or three days I got destroyed messing around with these pump HOD breakouts. as of close on Friday im down to 3k-4k on the week...which translates to a 6k-7k loss. ouch. Besides the rule #1 issue, for the week I'm still up.... but its clear I need to stop trading this way. I knew it was a matter of time before I bleh up on that game of musical chairs, and it happened.  Now I'm trying to apply what I'm learning  from the material, avoid previous mistakes, and approach this from a more macro view before getting into a position.

 

CNIT

 

::Past::

1) It does have history of spiking at least some. In Nov of 2015 - it spiked twice:

First one was from .70 to a high of 1.76. Second spike came about 10 days later, price moved from 1.00 to 2.40 high in 1 week or roughly 8 days. Both spikes came with record volume.

The total move from both spikes was $0.65ish to $2.42, roughly 350-370 percent gain in 23 days(including the consolidation period in between the two spikes).

The spikes themselves ran from 4-6 days both times.

 

2) spikes mentioned in #1 had no catalyst, and appears to be pure low-float pump plays ( maybe something to do with a delisting notice in mid-late Nov 2015.)

 

:::Present:::

1) The stock has been trending upwards in the last few months, with several spikes in volume over the same period.

 

Daily chart

 

Weekly Chart

 

2 ) Earnings report is Nov 13th, so if reaction is good - the catalyst could be strong enough to push CNIT higher.

 

:: Cons :::

If my support and resistance on the weekly is accurate, there is resistance at both 1.60 ( and 1.78, top of bounce from last spike collapse) and 2.37ish.  

 

::My Plan:: 

 

Wait for earnings to release and see how price action reacts to the immediate resistance @ 1.60. Ideally, price would break above here and return and rest at prior resistance turning it into support . from there I would aim for an entry after intraday consolidation when volume returns -or- wait to see if there is EOD closing strength and try to time my entry there in anticipation for a potential gap.