It's such a pain in the ass on this last trade as the market moved up but my stock was not performing. Waited for almost an hour before the stock started to shot up with some strength and within minutes, it simmered off again. In fact it's very difficult to trade last evening as I could not predict the movements at all but I am driven to make some $$ and so I did took 2 trades. Based on the Top 30 stocks, BBBY shot up the most as the stock was driven by short sellers covering shot which caused a spike in prices. There wasn't any company specific news but I believe it was the driven buyers' momentum which caused prices to spike together with the 5 minute chart exhibiting accumulation and re-accumulation.
The Nasdaq was very choppy last evening and it almost looked like it was going to fall but then hard an amazing reverse which caused most of the stocks to move north. Without that turnaround, I studied that daily chart for Bed Bath and you will see that the gap down was huge with buyers liquidating at the bottom where the big whales flushed out all the small time retails before conducting a short covering which caused prices to spike. From the chart, you will see that as prices collapsed lower and lower, the bars are getting shorter and tiny where it indicated that sellers are exhausted. It also had another meaning where buyers will be emerging soon and since this is a heavily shorted stock with high float of short interest, buyers would need to cover shorts or prices would explode where buyers will lose $$. With that in mind, one can take advantage of a position to increase your chance of winning in BBBY.
I mean you need some intense knowledge and skills to be able to spot those turning points before having guts to take such a good trade on a risky stock. You will also need to practice and see many such stocks to have muscle memory to be able to take such confident and convicted trades. Nevertheless, finished another great risky trade and moving on to the next stock.
Ronnard -
Market Psychologist -
A Stock Market Opportunist