So there have been MANY times I've gotten in early on one of these reverse split trades where it's dipped some more and I start out negative.  Obviously we'd all like to get in a trade and it immediately start off green.  The reason I've done well at these is because I've been able to have some patience to hold through those dips, mostly based off the stats I have between the relationship of the risk profile, the float, short interest, and the market cap.  Hot sectors as well.  And I can't remember how many times I've said "it hasn't given me a reason to get out yet," so I stay in and usually add to my position at another low point (usually if it backtracks 10-13%..sometimes 20%...and I've been able to count on a bounce to save my ass and at least get out for breakeven...which sucks in its own way, but at least I don't lose money.

 

Today...AREB gave me a reason to get out.  I got in at a pre-calculated "buy zone"...under it actually, at $12.50.  I liked that key level for a bounce back up to $15.  but it dipped some more...and I bought some more - at the 10% dip mark.  But then....it dipped some more....and more...I waited and bought some more between $7.20 - $8.40.  I actually had a good average in the 9s, which would have gotten me out for breakeven on a 30% bounce.  And last night in afterhours was promising when it bounced up to $8.40.  And then....

 

I woke up and it was right back down to $7.  And had to cut it.  It had broke that line that I gave myself...but just barely.  And then after I got out, they announced they had done an offering, which tanked it way down to the $5s.  SO...that hasn't happened often to me.  Matter of fact, I can remember all the tickers that have given me a good wallop, which is why I never trade 'em anymore: RNAZ, WHLR, BINI (was MULN), and now AREB.  Dirty, dirty companies.  I understand the game of diluting so they can make money and survive, but it definitely stings when they do it when the stock is already at lows...but, that's why I get in at lows and not buy at breakouts, cause that can kill an account.

 

Was a bit deflated yesterday and definitely today...but it's just part of the process.  That one trade did NOT wipe out all my gains from last week, but I've had a shitty start to this week, and it wasn't my only loss.  But it only set me back by a week of gains, so whatever...losses happen, and it's part of the process...I'm taking the time to look at what went wrong and if there's been a dynamic change in reverse splits - or was this just a one off.  Pretty sure it was a one off, so I'm gonna just keep plugging away and stay in tune with the market the best I can.  My other loss was just stupid...Fidelity changed their mobile platform and I had a good size (for me) on call options on $C yesterday - did a market order out at the tip top of $100 on the commons...went back to work proud of my $500+ gain.  Except when I checked my phone at lunch, I was still in it.  Turns out, the new Fidelity platform doesn't automatically default to "sell to close" anymore when you click on your equity...it was defaulted to "Buy to Open" and I wound up doubling my position at the very top.  Was hopeful it would try for a double top, but cut it this morning when it could break the HOD.  Shit happens.

 

BIO TECHs were all the rage today, which is hopeful, because these reverse split trash stocks are almost always bio techs.  Sooooo many hopeful little fuckers.  BIAF from last week's watchlist took off tonight in AH...almost 100%.

 

Crypto/digital currency is still hot.  RR put robotics back on the roadmap.  Semiconductors still the rage.  Tonight ATON took off like a bat out of hell...finance/FINTECH sector there.  So there's sectors going.  

 

Here's what I'm watching or am in:

 

CETX - Internet of Things / AR-VR / AI.  MICROFLOAT, an ok probability to bounce 30-50% from a bottom.  Last month signed a letter of intent for acquisitions in Robotics and aerospace.  They haven't pumped at all since the split, which makes this even more enticing the closer they get to the 10-day mark.  Might take a position again if it can crack that $5 level and touch down to $4.75 for a double bottom bounce.  I like this one alot.  Unlike that fucktard AREB.  BUT, it is a MICROfloat which can be dangerous, so small positions only - they need to dilute to get their float up to 500K.  Hopefully they pump first.

 

LVO - Live Streaming / Games.  Ultra low float, higher risk, but good bottom bounces.  Glad I cut this earlier; It's making a triple bottom now, and it may break that $4 area wiping out people's stop losses...I'd watch that $3.95 area for a potential bounce though...that's the bottom of downtrend line from Sept 5 to now.

 

GGR - Taiwan Smart Batteries for EV.  Low risk, but a higher float than I like.  Hot sector though....I would watch this one for a bounce around the $5.50 area.  If it breaks $5.40 cut and wait for $5.

 

New Ticker tomorrow:

 

NCL: 3D Printed Flooring.  About as exciting as Party Balloons.  High float and an unknown risk profile.  The only thing interesting to me about this one is that its close tonight was $1 exactly (split adjusted for tomorrow).  Reverse splits need to close at $1.00 for the next 10 days or else they risk being delisted.  If it opens lower than $1.00, there's a good chance "they'll buy it up" to $1.00.  Hopefully it dips to like 0.80 or 0.85 cents, because that's recoverable.  I just don't like that float AT ALL.  Risky, but might be worth a shot if it's still under $1.00 at noon.

 

Side note: I've had a position in PTEN for months...it's an oil/gas ticker.  The last few days has been a very bullish move.  Then reading about the ports all being log jammed because of the government shut-down had me thinking that this may affect oil tankers bringing in our supply...so domestic oil drillers - like PTEN - could benefit by ramping up production (and because OPEC reported a lower production than expected); low supply and high demand equals higher oil/gas prices.  The shut down will still be at least a week.  HUSA is an old time favorite domestic oil driller that's still a low float, past reverse split, good risk profile, and has a history of supernovas.  I took a position tonight and will be risking the $6.00 level.  Totally speculative, but I like the thesis.

 

OK...Let's get that cash!!