Why I Bought Remark Holdings (MARK) on Feb. 9th at 6.14. It's all in the SETUP.
I'm a trader. I don't care that J Cap shorted the crap out of MARK. I don't care that MARK had a 'great' rebuttal. All I care about is price action. Since MARK doesn't pay a dividend, the only way I make money is by controlling where I buy and sell or where I short and cover. I can analyze this quickly to find entry and exit points by using SUPPLY & DEMAND. The very basic economic principles that never go out of style.
Yeah Yeah, I hated econ class in high school too. The more I learned about trading stocks years ago, the more I realized that I have no control over where I hope the price goes. XYZ stock had 'good' news but the stock went down? ABC stock had 'bad' news but the stock went up? What the hell is wrong with the stock market?.... After a lot of headaches, trial and error, and major studying of technical analysis once I figured out what it was, I came to the conclusion I can only trade what the market gives me. I can control when I buy and sell. Don't buy just because news is good, don't sell just because news is bad. Analyze what the traders and investors are doing by using Supply and Demand principles.
Okay, back to MARK. Is it a great company? I don't know. I don't have time to thoroughly research every detail of their last 10-K and/or 10-Q filing. Do you? Vegas.com is cool, but thats about all I know about them. What the heck is KanKan? Don't try to tell me, you're just wasting your time. Do you really know what their assets are worth? I'm not going to China anytime soon to try and figure it out.
What I do know is, a stock with the ticker symbol MARK recently traded as high as $15/share (I sold MARK at 14.95 and 14.87 from a previous swing trade) was down to around $6 after a failed consolidation pattern.
MARK Daily chart as of 2/12/18 for the past 3 months.
The bottom of the consolidation box is known as the Support level or the Demand for a stock. The top of the consolidation box is known as the Resistance level or the Supply of a stock. After the box support failed sellers took over and pushed it down towards 5.50. The low of day on Feb. 6th becomes the new support level. What happens when Supply is greater than demand? DROP! What happens when Demand is greater than Supply? POP!
I Bought MARK again on Feb. 9th at 6.14 after red sell candles slowed down and support stayed intact. As it perked back through 6 and was attempting to move from red to green on the day. I play when the odds are in my favor. Look for high probability SETUPS that are in my favor with an exit plan already in mind in case it doesn't work as planned.
The 'bounce off support' setup is just one example of many different setups I look for to find entries. I post many charts real-time on twitter daily. I will expand on other setups in future blog posts. Please feel free to ask me questions via twitter!
Full Disclosure: Long MARK 6.14 (Feb. 9th)