Trade Review TAT "How to Play Sympathy Plays" | Bulls on Wall Street

Trade Review TAT "How to Play Sympathy Plays"

Trade Review on TAT.  This was a swing we took on sector momo that was coming in on small oil stocks.  RAM last week had a giant pr that popped it 80% in 1 day.   In a trade like this is true often we anticipate the breakout due to the “sympathy play”  Sympathy plays are essentially  a play where  a stock in a sector has a huge run off earnings, news, etc.  Often on that 1st play traders will pile in and push up the stock.  What tends to happen is the momo in that stock will spill over into stocks in the sector as traders take profits in the original and reallocate capital into something new. Also traders who missed the 1st play are feeling the itch to get in the momentum and are hoping that they can find a stock that will do just the same.  This tends to lift many of the stocks in that sector especially if there is a similiar company with a similiar price point ie if its a 1.00 stock or 2 dollar stock.  What we saw off the RAM deal was many dead stocks come alive.  Stocks like TRGL that have been basing for 6 months finally had the push it needed to break out of its base.  Thats why we picKED $tat as it just ran up nearly 100% a month ago and has been retracing since then.  Since its a former runner we can assume that it  can catch on fire on any catalyst

Added this stock in chatroom 1.12  sold 1/2 at 1.21 and last 1/2 at 1.28.

I give myself a B+ on the trade.  It took 3 days for it to really get going which is not my style.  Ideally if im holding for 3 days i want 20-40% gains.

 

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