SOMX got halted prior to 12PM for reasons of news pending. It was also announced that the stock would re-open at 12:05PM. Normally, one does not have the luxury of being able to be ready for the spike. Like NUVA and my various AIG trades, the first 1-min spike bar held up and sustained itself. This first spike automatically broke above 4.80 (Nov 2009) and 4.88 (March 2010), alerting of a full-scale technical breakout. The secondary breakout was marked by a break from the neutral range as well as another breakout above $8.
This is another example of a trade where you either caught it or you didn't. There is no in-between. If you were fast and on the right side, congrats. If you were slow and/or on the wrong side, there are lessons to be learned from the SOMX trade. Whenever the first spike holds up and immediately breaks through the nearest major resistance, it is a long trade. If it fails to penetrate major resistance, it will fade, for a short entry. Upon breaking out, it is a signal of further momentum, giving opportunities to scale-out of the position.
Looking back this year, I noticed that I had at least one intra-day spike play once every 1-2 weeks. I do miss some of them, but you only need one of these plays to make your day, week, or month. After a huge win, it is my standard protocol to take it easy the next day (t0day) and play with only 1/2 size positions and cut down on frequency. People say that you shouldn't trade with emotions, but since we're human, emotions are inevitable. After huge wins and losses, always remember to take a break, refresh, and then get back into the game.
Some charts with levels marked below. As each target is reached, you have to pull back to a longer time frame to find the next target. It is 4AM and I need some rest. Have a good one folks.
Earlie screenshots from the day and stuf f;:
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