As the old saying goes, “It’s better to be lucky than Good” at times. That’s what I’ll go with on my latest swing trade in JRCC. In fact I didn’t even realize I had made the trade until I received my trade confirmation from ThinkorSwim. Though I don’t plan on making this type of trading a habit, I won’t complain about profiting off somebody else’s lack of discipline. I can only explain it with one or two theories. 1) A large institution was forced to liquidate their position in rapid order to cover some sort of leveraged position and maintain it’s margin requirements, or 2) there was a colluded “Bear Raid” that went bad, as big institutional buyers stepped in, instead of piling onto the selling and blowing through stop limits.
Whatever the case, I’ll take it, even though it wasn’t the textbook ‘pullback to support and then relief rally’ that I often try to take advantage of in my swing trades. Here’s a chart to show the action from last Friday which was only two days after posting the JRCC trade to the Shareplanner Swing-Trades List.
No matter the case, I am going to lock in profits on any selloff as I believe in general that the market is due for a correction after this 50% + run off the March lows. Hence the stop has been raised to 16.93 which is just below the support shown throughout today.