2 Trades this week.

Thank you stock market for the weaker market conditions and pushing me to do some testing on short set ups. With my current schedule it's difficult to trade the morning and therefore I miss a lot of morning action. 

I am looking to short stocks that have had a multi-day run up with or without news. Looking for weaker price action following the "run" to signal stock is on its' backside. Risking off previous highs with $50 risk for every trade. Typically I'm taking positions in the afternoon to sell before EOD or swing. I am not yet comfortable swinging for more than 1 day. I will do some tracking to get a better feel. 

$YELL - Had a multi-day run that topped on 2/2/23. The peak day had a strong morning spike till 11:00 AM and slowly faded the rest of the day. The following was 1st and 2nd Red day. 3rd day there was green day with lower vol compared to peak day. Entered position near end of day with stop at $4. Following day had small gap-up and stock began to panic and sold into panic. Sold a bit early but grateful for this win. Thank you stock market for this opportunity.

$SLQT - Multi-day run on positive news regarding 2Q increased revenues and narrowed fiscal outlook (huh?) - causing spike from $0.8s to $1.5. (1) Day after positive news came out. Citigroup and RBC upgraded price targets to $1.50 and $2, respectively. This caused 3rd day for price to spike from $1.50s to $2.50s in a morning spike. Followed by hard pullback and small bounces into after hours and next day. Entered position near ROUND NUMBER $2 and close enough to previous bounce tops. Got weakness at end of the day with poor market conditions. 

 

Overall, I'm still very uncomfortable shorting and always watch position prepared for the worst. I struggle having the patience to hold for more than 1 day. I'm extremely grateful I made money in this market. I've always avoided shorting but I'm enjoying the versatility it provides as a trader.