HMNY: Following a Downtrend to A Spring

The Entry Points

Stevie Swai

Seems like all a company must to do to raise their stock price for a couple of days is to release some news with the word ‘blockchain’ in it. Kodak did this on Tuesday, January 9 which propelled the 3.53 stock to a high of 13.27 the next day. I had looked for opportunities trade it, but when I finally took a position, I scratched it at the end of the day because I feared holding it over night. It was a good call as the stock gapped down almost a dollar on open the next day and continued to fall.

The next day Helio & Matheson (HMNY) released ‘blockchain’ news and their stock shot up to 9.88. It sold off and bounced from 8.29 to 9.70. What a great trade for someone other than me because I missed it. And it bugged me that I missed it. I tried to trade it a couple of times on the way down, but decided that best thing to do would be to sit tight and wait for a spring. I wanted it to break 7.20. My mistake was not putting a limit order in for 7.20 so I got filled a bit higher and it was difficult getting filled as it started moving so quickly. I think my fill was 1500 shares at 7.32. It hit a resistance area at around 8.00 and I was tempted to sell part of the position. It broke through and I sold 3/4 of it at 8.17.

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