So on news of SCIL's 3rd quarter earnings the stock promptly jumped about 100%. While the earnings news was good, it wasnt deserving of a double in the stock price. After my screwup with FONR the other day I made sure I did this one right, at least on the short sell. I was a little late to the game (got to put more faith in my initial gut feeling and waited a bit too long) and sold short at $6.05. After watching it bounce back up about 5 seconds after I bought it to about $6.40 I waited until it dropped down to about $5.75 and then started an uptick again. I closed out my position at $5.80 and made a few bucks ($50 to be exact, not much I know but better than losing it.)
So was it the right play to sell then, well if you look where the stock ended up for the day, at about $5 the short answer would be no, however given the volatility of the stock and the fact that it had a resistance point at about $5.75 I think it was the right thing to do. I didnt want to carry the stock into the weekend and it could just as easily have continued its flatline, instead of having the bottom drop out. If I had been smart (and monitoring the stock) once the candles started trending red again at about 3:15pm I would have sold some shares short again and closed out again just before the bell. But I didnt and so it is just wishful thinking.
lesson of the day act early on the news dont watch the action happen right in front of you.
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