Going into next week with much of the same positions with a few new additions that I will add below. I believe our short in $WLL and $SWHC are beginning to materialize. The Jury is still out on $DAR and $SPXU. Considering the price targets of bailing have not been hit, one must stay the course. Understanding though that we are close to hitting our targets to get out for a loss.
The new additions to this week's watchlist is dedicated to the small cap market space. They tend to have very volatile swings in both directions and one should be extremely cautious w/ position sizing and monies allocated if they intend to play this space.
In the space of a month, this stock has gone from around $2 to north of $7. That's quite a run in such a short period of time. Again, large increases on this kind of scale is unsustainable. Waiting for the fall. Ideal entry price is $7. If I put on a position now; I would play it with the understanding that this can potentially hit $7 and a little more.
Another runner, except this one went from $2 to $10 in two days. FYI, pharmaceuticals companies are known for these types of whiplash moves. On my short list and I think the r/r (Risk/Reward) is skewed in the shorts' favor. With the caveat being that this is a pharmaceutical company that was acquired by billionaire investor Steven Cohen. Which means you can wake-up to the unexpected. When I short pharmaceutical companies; I do so with the understanding that I can wake-up to a blackswan event and because of that, my position needs to placed in a manner that shows I understand this. Ideal entry is mid 9s.
All you need to know is $1-$5 in about 2-3 weeks. An increase of 400% isn't normal in 2 weeks. It takes most healthy companies decades to achieve this. This means I am waiting for it to begin its fall from grace. $5 is ideal short entry.
WLL (1%) BTU +60% SWHC (4%) DAR (2%) SPXU (4%) Only one winner but our watchlist still teased out ahead by double digits. Why? I will explain more about this and losses in tomorrow's blog. Make sure to check it out.
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