When I entered CDL on the first occasion, it was for a quick hit-and-run play as CDL has the range for swing trade. It had been making a counter trend rally for 4 days and all 4 bars closed near their respective highs. I entered in the closing hour on the 4th bar. When it continue to make high on the next day, I thought I was wrong. How often do you get a 5-day rally for an index stock? Lucky it closed with tails on either ends, telling me it was showing some signs of weakness. However, it continue to make high on the 6th day, only that this time it closed just off low, with an inverted long tail. Another sign that some pullback is due. Meanwhile the regional markets were rebounding strongly following the strong US markets, and the STI even managed to clear a minor resistance point. Not exactly that weak! My instinct was telling me I have to take the profits if avail. I queued @ $9.11 and the order was filled at the opening minutes on 13 Feb.
Sort of regret my decision to close as the STI make another high on 13 Feb, but closed off high. Was it telling me that it was not so strong? That its throwback is finishing soon? Anyway, decided to queue @ $9.25 to short again on 14 Feb and that order was filled soon in the opening hour. Towards the last hour, decided to close the trade as CDL had very low vol for that day. In fact, the volume for 14 Feb was the lowest in 2 weeks. Where are the big boys for this stock? Hence, I exited this CDL trade again.
Profits on both occasions. But not exactly proud of it. Feeling jittery. My hunch is telling me about being short squeezed. Perhaps one last wave of upwave to squeeze the shortists and then trap the retailers to come in?
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