February 18, 2015

CRIS Short Daytrade

I was following CRIS with a short bias for the past couple days. It went from $1.20 to $3.00 in about a month. It had about eight straight days of positive gains with no red days heading into today. Yesterday it looked like the buying volume had finally exhausted itself. Without any consolidation these runaway stocks like CRIS usually end up crashing pretty hard and fast.

The breakdown finally came this morning. I posted this trade on my Twitter. Looking at the intraday chart below you can see that $3.50 became resistance three times. Dollar marks and $.50 marks are often important technical levels on stocks under $10 a share. The $3.50 was tested and never broken this morning. As soon as I saw the stock go red on the day (negative) and the support of $3.30 from yesterday taken out I wanted to get short quick. The big sell volume was great too. Ideally I was looking for a pullback to the $3.40s to short. That was incase the trade went against me and the $3.50s were taken out. So I had a mental stop loss of $3.51. It actually came back up for a bit but I filled at $3.31 short.

I was confident and happy with this as more downside was evident from the stuff I just mentioned. CRIS continued to plunge as you see on the chart. I covered at $3.19 taking $.12 a share in gains. I took the quick gain because these biotech stocks can be quirky when it comes to holding losses. Just when you think the run is over and the stock is doomed they run again and again. It went on to a low around $3.00 and made a wild recovery into the close. I still say short bias on this one but like I was saying bio's are tricky sometimes. I won't be scalping this particular stock again soon.