Wednesday, July 27, 2011

Sometimes, things get wacky

Since the most recent theme has been VLB setups, here's an example of a trade in SBRA that looked like it was working, then failed miserably.  Yes, that spike on the chart is real, it's not a bad tick.  Out of nowhere, there was 200k volume on a 2 minute bar, when the average was around 10k.

This order caused the price to spike up $0.60+ (4%+), but then it came back down to earth in a matter of seconds as if nothing happened.  Blink, and you could have missed it.  Who knows, it could be all the algos, competing against one another. 
SBRA - 2 minute 2011-07-27

This was more like a C+ setup, since it only had VWAP as resistance.  But I took it for practice knowing the odds weren't as good.  My stop was above the high of 15.20, and I'm fortunate that my fill was 15.30.  I'd hate to be the person who got their buy order filled at the top tick of 15.83!

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