In THIS POST we spoke about the importance of “where has the stock come from?” and not chasing breakouts. Since exiting the balance of that position with a profit at 48.30, the stock continued to selloff, all the way down to 42.02 in the next six trading sessions (see chart below.)
Today we had QRVO on our watchlist. The stock broke some resistance at approx 5650 and then rallied a quick dollar. This dollar move higher saw the stock break a 2 month new high at which point I wrote in chat “breaking the high of last month is probably now time to sell , as breakout chasers do their thing.” The stock peaked the very minute I typed that in at 10:28 AM EST. and then sold off down as low as 5572 in the next 3 hours.
Once again, we are reminded of the prudence of anticipating how others may respond and the value of being ready to take advantage with our positions.