Hey everyone. Just a blog post that I'm writing on $MNKD. Self rant but I'd like to share with people who understand what I am talking about.

 

First off, the 1 day and 1 year chart:

 

Two days ago, I noticed that $MNKD had a break past $1.85 multi-month resistance up to $2, then came back down to the $1.85, meaning it was a solid support. I was in another trade so I didn't dip buy it two days ago, and yesterday it went up even higher to $2.25 before coming back down. Looking at the 1 year chart, I noticed that it had 8 green days in a row and failed to break out past $2.25 which was near a mutli-month resistance. My thesis was that it would be really hard to break out again due to over-extension and failure to break yesterday and therefore was due for a reversal, and today would be the day that it reversed, and if it were to drop then it would get to a low at the $1.85 resistance 2 days ago.

 

My trade? Short 1600 shares at $2.00 off consolidation, cover 1600 shares $1.99 after the first low ($1.95) was retested and bounced. :O :O :O :O :O :O :O :O 

 

One thing I really struggle with is patience. I shorted consolidation after the first panic to $1.95 and before the stock retested the $1.95 level, and covered when the stock couldn't break it. Had I been patient I could've had a nice solid win, not due to profit but due to the fact that my plan was literally spot-on. The volume was at least a million shares, probably more, by the time I shorted but I was worried that there wasn't any kind of rapid movement going on like I had hoped, totally overlooking the float at 99.4 million shares. The move down to $1.85 was a gradual decline then drop, and I was hoping for more of a death drop, so I lost my patience and covered.

 

Lesson learned: respect plan and if it is going in my favor, stick with it!!!!! (unless things go opposite of what I planned for). Although I was "late" by shorting at $2.00 when the stock was in the $2.20 range pre-market, I would have still had good gains if I was patient and paid more careful attention to the stock's slow downtrending action. It sucks to have a solid plan play out perfectly and I missed out because of my impatience, but I can only learn from this and trust my instincts more from now on. On the plus side, my confidence in analyzing a stock's movement and predicting what can happen next has increased tremendously. When I see another perfect setup, long or short, I'll consider taking a bigger position if the signs are right.

 

I hope others got in shorting $MNKD for gains! If you did, congratulations. :) Thanks for looking at this blog post.