Today we traded ACI for $200 dollar gain. I actually messed this trade up pretty bad as the gain should have been much more. Here is a look at why i entered the trade and how I screwed it up!!
I had ACI on my radar yesterday when I saw the $PCX news come out. Usually when a stock in a particular sector gets as bad of news as PCX did (bankruptcy) then the other stocks tend to follow in the demise. As you can see JRCC got hit pretty big off the pcx news. ACI was down yesterday but not much. Notice how similar all three charts look..
So I was watching ACI today, and noticed that it opened green with the gap up. JRCC faded pretty hard out of the gate, so I turned my attention back to ACI. I saw it start to show weakenss, so I shorted it as it approached the green to red move. Perfect entry. We got a quick drop and covered 1/2 our position at 6.52 from 6.72. The stock bounced shortly after we covered.. and actually bounced into the perfect re-short spot. I covered at the intraday resistance (bad move). Stock faded hard after hitting that resistance and closes down huge for the day.. just as I thought it would. Bad trade on my part. But at least we learned a lesson and made some money.
