NBY

NovaBay Pharmaceuticals is a biotech that makes anti-bacterials and anti-infectants and stuff.

They are being pushed as a mask play by pennystocks.com. There’s not a lot of PR mentions of masks by the company, but if you go to their website: yes, they do – in fact – sell masks.

Their Quarterly earnings was about a month ago.

They are a 22.5 million float stock. Traded about 5 million during power hour – mostly in the last half of power hour.
Broke ten day resistance. Broke a month old resistance. And came down.

I watched the level 2 for what I thought was a reasonable amount of bidders – which coincided with a reasonable support level. 
That happened to be 1.16, which was the old breakout level.
There was something like 10,000 shares on the bid.
Something like 50,000 shares just below that.
And about 100,000 shares at 1.14.

After watching these dollar range stocks pretty consistently for the last month, I’m learning a sort of pyramid of bidders form – and this is called “bid stacking” (or “ask stacking”).

I have to wonder why bidders at the lower levels keep their offers there.
They have to see bidders piling up on top of them.
They have to know that they’re not likely to get filled at some point.

Anyway, I put in my 3 leg bracket order.
Fill me at 1.16
If I’m filled, my stop is just below the pyramid: 1.13.
My target is 1.50.

You have to put a target. That wasn’t my actual target.

I am loving these bracket orders.
You get filled and get a stop at the same time.

Have you ever got filled as a stock was dumping and it dumped through your stop loss?
Gyead.  Talk about nightmare fuel.

“I should get filled on this bounce and if that level doesn’t hold…
Ahh shit. Now I gotta get a job.”

Anyway, I was pleased with myself. As soon as I was filled, my stop was in, but the stock took me up with it. It was nice. But that breakout level at 1.23 – that multi-month, triple top res… Well, we weren’t having any luck with that. I didn’t like it and I didn’t want to hold through ANOTHER bell.

I don’t like holding through bells.
I lost a pile of money this morning – went from winning to losing – by holding through a bell.
I have a … guideline … that says:
Don’t hold through the bell.
Well. Usually that’s for the morning bell. But still, no thank you.

So I took a very small profit on NBY right before the bell.
I was apprehensive about it. Not feeling great about being a big ole sissy trader.
But, I’m looking at it now and, while it’s still above my entry, it hasn’t broken that 1.23 level.

We’ll see what happens through extended hours. Maybe it’ll be worth a look later.
I want consolidation. I want higher lows. Then I want to get in near those higher lows and risk off the highest low. Then I want it to bust through 1.23 and run like mad to 1.80. I’ll say I’ll probably take half there, but the truth is, I’d probably get out at like 1.50 on the first red candle.

Well. I’m working on it.