Wow. $PULM was pretty exciting today! At market open, I wasn't really sure what it was going to do, so I simply watched... and slowly, my eyes got bigger and my jaw dropped lower. I missed the gravy train, but I wasn't too mad about it. I remembered the lessons that Tim teaches us. Don't. Chase. Spikes.
Now, today, it may have been a good idea to chase it, but today is not every day. It's better to stick to a core set of rules. If you miss out, so what? At least you didn't lose any money.
So, having been watching $PULM for a while now I wondered... If morning spikes are back on the table, does that mean that the other patterns I had been noticing were back into effect as well? I contemplated this as I watched the stock soar ever higher, and I even thought about getting in at a few places. I set up a couple limit buys but ended up setting my limit too low. After lunch, PULM kinda calms down a bit... so I waited for what I thought was a good level and I bought in. 150ish shares at $3.58. My plan was to hold onto these for the morning. I kinda let PULM out of my mind for a little bit (I was reasonably confident the price wouldn't drop much, if at all). I took care of some things at work, and when I got back around to checking the stock, it was spiking again! I knew there was some resistance a couple cents above $4, so I sold at $4 and made a nice little profit.
Another pattern that I was curious about was the end of day runup that it had done many times before... So I watched it... patiently. Slowly the spike I had sold on had receded a bit and the stock seemed to be leveling out a bit... It was bouncing around $3.70, but was $3.66ish on the low side of the bounces. I took a chance and set up another 150 share limit buy at $3.65... and I got it! I kept a close eye on the stock after that. Not too long after, I saw the prices rise again. The end of day runup was happening! I held onto the stock to market end, and even now, after hours, the stock is still 14 cents above my buy price.
I don't know about you guys, but I'm feeling pretty good about this.
Thanks for reading!
Xero
Categories
Price Action: Morning Spikes
Tickers
PULM
Also, as I was watching the price fall while setting up the order, I decided to go with a market sell to get out fast. After that and seeing the price try to move up and get smacked down and try to move up again, I decided not to do anything with it until it calmed down.
I had one potential buy point a couple minutes before 2, but once again, because I was at work, I missed out. I could have made 13cents per share, which would have been a profit of 19.50 had I bought 150 shares again. But, since I kinda felt that was my only chance, I didn't buy back in at all. Based on the price action during the day, I figured the stock would also go down at market end.
Tomorrow will be a dip buy only. My guess is there will be a tiny morning spike followed by another gradual fall. I'm thinking the price will settle around 3.50-3.75 per share. Now, that's just a guestimate and by no means should you follow this advice (per Tim Sykes), but that is my prediction.
More about the pre-market... Remember when I said that it's the people investing in a penny stock that decide it's value? What was the value set at yesterday? What did the pre-market do? Given those two things, what would you think the stock price would do following market open? These are the types of questions you need to ask yourself and the type of situations you need to learn to see.
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