With all of my recent involvement with Citigroup lately, I've picked up some observations about price/volume and 10/60 crosses relative to future movements.
These observations are compared against all that I know of momentum stocks, and illiquid penny stocks. First, expect these guys to tick. With so many shares moving often, no one is satisfied with sideways action. Next, sell offs and breakouts are not secure for long! This is huge. If you are sub 25k "day-trader" then you need to be at the screen watching price/vol. Take a look at how C cycles downward with progressively lower lows after 1pm. I knew my short was valid. Initially my stop was at 4.05. This stop was placed on the uptick, right after I entered and right after the 10/60 cross. I got more confident in my position as time passed but when I first entered, to guard against break out it was a great decision. I saw the resistance at 4.03. If it broke, I could have lost much more since I am short, and C had a great day just yesterday. Well after the two cycles I decided I could layback. So, when the stock brokeout past 4.05, I knew what the market was up to. C was going to end the day down. When I stock is due to be down, the best way to end the day profitable is to short. Luckily I beat the crowd in at around 12:30. So, I sat and watched while the stock cycled and sure enough, it hit BOTTOM after the best breakout of the day. A few months ago I would have cut my losses at 4.04, or maybe during the second breakout. Hell, I probably would have flipped positions and went long. These are classic mistakes. This is why fewer people make money than those that lose in the market. I hold panic buys and sells accountable.
Today was special because C was cycling. The strange part was that it was unbelievable predictable. As usual, had I more trades, perhaps I would be up more. I hope nonetheless that I would have done the o/n night hold I am currently with. My shares were shorted after noon at 3.98 and market close was a nice 3.90. If you checkout after market you can see the slide off of 3.88 to the upper 3.80's. We might be up for a gapdown tommorrow, but news will send this struggling spaceship flying if Barack decides to share his plans about TARP and additional funds that have been mentioned.
Overall, I have nice unrealized gains. C will make them up in no time since it is so liquid. Profit taking at the right moment tomorrow will be the challenge. For the first time in a while, I will be on top of general market news. It will destroy my confidence to end up red on this trade. So the real question is... should I put a buy stop at 3.96 to break even on commissions?
