Sorry for the delay in getting this up today, forgot to press publish after re-reading.
I was watching this because it had been brought up in our morning meeting as a potential second day play. I thought the high 33.90s would be an area to watch for support for the stock, and noticed a refresher on the bid at 33.97 was coming under a lot of pressure, because of the volume I thought that a break of this level in a weak market could lead to a test of the days lows. As the refresher broke I punched in short, and a little more than a minute later exited as the JCP rebounded. I consider this my good trade for the day because not too long ago I may have ended up taking a loss on the position, waiting for the original idea to work rather than trading the tape. As it was, I was able to cover transaction costs with a little profit to show.
I have chosen CXV as my bad trade for the day because it is very illustrative of something that is hurting my trading significantly and I am striving to eliminate. I got short on a break of a stronger refresher sitting on the bid at 22.98 – as you can tell this is how I like to enter my shorts. The trade started to work right away, however as you can see from the chart I punched out on the first real misreading the situation and missing out on the lions share of the move. I need to give my trades more time and adapt my reactions to the character of the stock. When I reviewed the tape, it struck me that in a situation like this where the stock is slower moving than JCP and I am unlikely to take a loss on a sudden spike I should be more patient with the position and give the sellers time to exert themselves.
I have the tape ready from the DTG trade I mentioned yesterday, I will post it to youtube and then this blog tomorrow as I am considering doing some audio rather than typing an essay that I then have to read over.