The last EA bar was nasty and got me to close out half my short position to be risk prudent. I still believe the stock fundamentals are weak. The analyst call was seemed very bearish to me as the executives seemed to dodge numeric specific questions. They said something along the lines of we don't see a recession, our numbers are good etc despite a meaningful downward guidance revision. In my opinion, they lost their monopoly position their biggest product line - FIFA and I suspect this would put continued pressure on the stock. However this may take some time to play out and shorting this name until this realizes could be expensive. I will hold my residual position for a couple more weeks to see if the sell off picks up -either analysts come to their senses and mark down the stock or the market continues its sell off and the beta drags it down.
I've updated my support line (for the wyckoff distributional channel) and will seek to cover the position if it reaches the midline. This will tell me this is actually an upthrust - which it could very well be with the volume and speed it reached the support. My PT still remains to be min $80.
I've updated my support line (for the wyckoff distributional channel) and will seek to cover the position if it reaches the midline. This will tell me this is actually an upthrust - which it could very well be with the volume and speed it reached the support. My PT still remains to be min $80.
Trade closed: stop reached:
Closing out the rest of the position - sometimes you can be right for longer than you can be solvent.
Comment:
Glad I closed this position when I did - shortly after news broke that EA had a suitor to be acquired. I closed out with tiny gain (not worth it for the risk held). Sometimes its better to be lucky than good.
