SOLO
Known to the SEC as Electrameccanica Vehicles Corp.
You knew this from my last blog. I forgot, though.
And honestly, the next time it comes around, I would be damn proud if I remembered all this stuff. So I’m saying it again.
SOLO has 62 million shares outstanding, it’s got a float of about 25 million shares.
They make electronic vehicles.
They’re based in Vancouver.
They have 63 full time employees.
Right now, they have more cash than debt, but they don’t have a lot of revenue.
It’s an EV play.
EV’s are hot right now.
It ran the other day and I made a few bucks on it – played the VWAP hold.
Higher lows, above the VWAP, into the 2 PM window.
You know. Classic Bohen VWAP hold.
It was then that I learned how powerful the 2.60 level is on this stock.
The following day, I had several “aha moments” trading SOLO.
I learned about the importance of the red to green level.
I learned how to identify a triple top.
I know it’s a thing: triple tops. Double tops.
But, I have seen so many stocks break on the third or fourth attempt, that I can’t just call a stock a hopeless triple top just because it doesn’t break a certain level.
But this time, I saw how to really identify it. How to see the backside of a triple top –
How to tell when to cut losses or take profit based on this.
Especially as it relates to the red/green level.
But that’s in another blog.
Here’s how I won on SOLO today:
SOLO ran the other day. It’s in a hot market. It found support at 2 and recovered. It had a VWAP hold recovery yesterday and found resistance at 2.40. It pinned the high of day into the close, but fell back down during extended hours. It found support at the old high of day and recovered, forming an ascending triangle near resistance at 2.40.
When I was watching it this morning, at first I didn’t want to get in.
The ask was stacked and the bid was hollow. My interest was an entry at around 2.35, risking green to red at 2.33. The problem was the bid was hollow. There was a few hundred shares on the bid at green to red, but below that was 2.26 2.20 2.10… It had room to dump on me.
So I waited.
When the bid started to thicken up, bids at 2.33, 2.32, 2.31, I felt more comfortable with an entry. I tried for 2.35 but by the time my order was in, the ask was backed up above 2.40 and the bid was stacked to 2.39. So, I put my little bid in at 2.40 and got filled for the run up.
I thought 2.60 might be the top – just look at the daily chart. It was quite the delight when it broke 2.60. I wanted to be patient – like Tim Gritanni patient – but it was also not technically the breakout I was looking for, as it was still near resistance.
Take half.
I took half at the tippy top.
I didn’t know it was the tippy top at the time, of course, otherwise I would’ve been all out.
I took half to allow me time and patience with the trade.
But after the predictable pullback, SOLO failed to retake 2.60. Then it failed to retake 2.59.
My experience from the other day told me the top was in – at least as far as premarket was concerned. So, I got out.
Here’s what I did wrong:
I forgot to zoom out.
I got caught in the minute to minute of the trade.
I got caught up in every tick.
Had I zoomed out, looked at my 10 day chart, I would see a stock that was likely to hold above my entry, likely to make a second attempt at its high today.
As I type, it is dipping like mad at the bell. Still above my entry.
I forsook paytience for profit and I fear I am likely to miss a little profit as a result.
Well. I’m glad to say I got paid for this lesson, but it is definitely something that I’m working on. Still.
I guess all the greats are still working on their patience, though.
Gritanni talks about it in his videos.
Sykes talks about it in his videos.
Bohen not so much, actually….
Anyway. Happy 4th of July!
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