{"id":1637,"date":"2009-08-01T22:54:32","date_gmt":"2009-08-02T02:54:32","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1637"},"modified":"2013-05-18T19:21:17","modified_gmt":"2013-05-18T23:21:17","slug":"every-cover-is-a-bad-cover-syna","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/every-cover-is-a-bad-cover-syna","title":{"rendered":"Every Cover is a Bad Cover: SYNA"},"content":{"rendered":"

Back in the day I used to think that every sale was a bad sale. \u00a0Inevitably internet stocks would somehow find their way higher. \u00a0And then came subprime. \u00a0Followed by its evil twin the near recent collapse of our banking system. \u00a0And during this historic trading period at times every cover was a bad cover. \u00a0And yesterday I battled a case of deja vu in SYNA. \u00a0Let’s discuss.<\/p>\n

Alexander is a trusted contributor to all things good at SMB, for instance this blog. \u00a0And as a result he sits right next to me so that I can easily direct him to start our next important project. \u00a0If this were a comic book, I would be Batman, and Alex would be Robin (except if you asked him he would be Batman and I would be Alfred, but that is whole nother discussion). \u00a0 And yesterday after the close Robin turned to me and said, “Bella (Batman?) why didn’t you short SYNA into the upmoves instead of hitting the new low?” \u00a0Great question.<\/p>\n

“First Alex, you are fired!” \u00a0Ok not really. \u00a0Yesterday in SYNA I crushed it on the open. \u00a0It was weak. \u00a0I was short. \u00a0All was good with my trading world. \u00a0Later, I gave back a little letting some dopey algorithm take my money. \u00a0And then made some money catching a quick upmove to regain my rightful place as master of SYNA this Friday.<\/p>\n

Then I took a break and did all the things a partner has to do that most traders never want to know about and would never be interested in doing. \u00a0But then it was 2:15PM and time to leave Gotham Partner Land and return to my oasis, trading.<\/p>\n

SYNA had trouble trading above 25.75 during the midday. \u00a0I know this because GMan told me and I can read a chart. \u00a0SYNA had not traded below 25 during the midday. \u00a0And there was SYNA heading down to its intraday support level of 25. \u00a0But it looked weak. \u00a0Near 25 SYNA was not bouncing off this level the way that it had previously intraday. \u00a0The upmoves after the downmoves were smaller. \u00a0The tape showed no signals that this 25 intraday support level would hold.<\/p>\n

And it didn’t. \u00a0And I started a long term short into the close at 25. \u00a0And this trade worked. \u00a0But then there is Alex’s question. \u00a0I kept adding to my position by hitting the new lows in SYNA. \u00a0And this didn’t work. \u00a0SYNA would\u00a0trickle down 3c after making a new low, I would cover and then it would trade higher 15c. \u00a0Hence Alex’s question, “Bella why didn’t you just short the upmove?”<\/p>\n

1) I should have.<\/p>\n

2) I didn’t want to miss an explosive downmove so I kept hitting the new low. \u00a0SYNA was again broken intraday below 25 so I was expecting a panic downmove. \u00a0It never came. \u00a0But sometimes a controlled downmove can become an explosive downmove. \u00a0So I kept at it. \u00a0But again this just was not working.<\/p>\n

3) There was something about the downmove that gave me pause to short the upmove. \u00a0When the downmove is so controlled, after the stock is broken from 25, I wonder if there is a buyer waiting to squeeze me back to the whole. \u00a0 And you will see this often. \u00a0If the downmove is controlled the stock may pop quickly near the Close to the previous support level. \u00a0 So I couldn’t get myself to short the upmove.<\/p>\n

4) I should have.<\/p>\n

I will watch my tape of SYNA today at the office. \u00a0 I did catch a point downmove on my core lot which I did not cover until just before 24. \u00a0So that was a chop. \u00a0But I could have traded<\/a> this downmove better. \u00a0And today I will watch my tape, in between safeguarding the trading world from the evil algorithmic programs and villainous institutional market players, to figure out how. Make sense Robin?<\/p>\n

Enjoy your weekend. Don’t forget to follow us on Twitter!<\/a><\/p>\n

\"SYNA<\/p>\n","protected":false},"excerpt":{"rendered":"

Back in the day I used to think that every sale was a bad sale. \u00a0Inevitably internet stocks would somehow find their way higher. \u00a0And then came subprime. \u00a0Followed by its evil twin the near recent collapse of our banking system. \u00a0And during this historic trading period at times every cover was a bad cover. \u00a0And yesterday I battled a … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":1640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[],"class_list":["post-1637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs"],"yoast_head":"\nEvery Cover is a Bad Cover: SYNA | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/every-cover-is-a-bad-cover-syna\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Every Cover is a Bad Cover: SYNA | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Back in the day I used to think that every sale was a bad sale. \u00a0Inevitably internet stocks would somehow find their way higher. \u00a0And then came subprime. \u00a0Followed by its evil twin the near recent collapse of our banking system. \u00a0And during this historic trading period at times every cover was a bad cover. \u00a0And yesterday I battled a ... 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