Ohhh... That's what I'd call a trader humbling market slap in the face right after opening PCLN calls to hedge the PCLN equity short position because of a small, tight triangle yesterday and positive intraday divergences. PCLN itself being down is not surprising, it was the only of 7 positions in the trading portfolio that was left open as a short, the rest were long exposure, but the hedge, wow, what a slap, that woke me up.
In any case, I'm not run off so easily on a.m. trade, it's up to the charts from here so I'll just watch and wait for instructions.
The triangle yesterday and the volume as stops are hit below that triangle.
A closer look, stops right at the apex and under the lows of the price pattern.
Of course this is why PCLN was left as the only trading short, because it's in trouble, but a pop >$1200 seemed/seems likely.
The 2 min chart is still holding up so I'll watch this for any deterioration as well as the 5 min below.
5 min.
Other than that, there's nothing but bad news for PCLN so if I'm short an equity position there, I stay in place and be patient, as far as the hedging calls, well, we'll see, I never take retail raking, a.m. trade too seriously.
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