JIVE opened at 5.21, popped to 5.31, and then spent pretty much the rest of the day fighting between 5.18 and 5.19 until it closed the trading session at 5.17. The end of the day saw a little panic-selling, but there is a LOT of resistance at 5.19.
Today saw a higher high and a higher low, and the Holiday may have had as much to do with the panic selling in the last few minutes before the bell. Someone placed a 5.24 bet after hours, undoubtedly hoping it might spur more enthusiasm come Monday.
JIVE
Open Close High Low
Monday: 5.20 5.13 5.27 5.11
Tuesday: 5.09 5.13 5.25 5.04
Wednesday: 5.11 5.19 5.21 5.05
Thursday: 5.21 5.17 5.31 5.16
If I were trading this with real money I would be looking for the exit come Monday morning. The reasoning for this is the principle of "Up-or-Out."
When trading stocks, if a stock doesn't behave as expected, then we get out. Our efforts are designed to capture a reasonably close time for a breakout and a miss on the breakout means it is more likely to fall and hurt our assets. Frankly, I prefer to NOT have my assets hurting.
LESSONS LEARNED:
1) When Starting the week, don't just buy the opening price, watch for a drop and for support to come in, that's the point to strike. I could have comfortably entered the paper trade on Monday or even Tuesday at 5.10 or 5.11 and made a few dollars on the trade in the end, even considering the trade fees.
2) Set a trailing stop so that if the trade goes wrong, then you don't lose your assets in it. Try to trade stocks that are of high enough quality that your broker will allow a trailing stop. E*Trade will not let traders set stops (hard or trailing) for stocks on the OTC market. Only exchange-traded securities (e.g. NYSE, NASDAQ) can have stop orders.
So, next week we'll look for some new opportunities. I'm eyeing MCP and TC for now, but I'll publish a Sunday post with my watch list for next week. My updates will be shorter in the future. and my weekly roundups will start to include weekly data of past watch-list stocks because I want to evaluate the value of looking at weekly and monthly charts for their MACD, accumulation and other indicators.
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