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SMCI sell-off continues amid disappointing guidance. Are you bullish or bearish?
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cnkj joined discussion · Oct 31 01:49

Short squeeze likely in the next few days. Short volume up nearly 1000% yesterday. Possibly tight window to exit.

1. Yesterday was the highest short volume recorded in months, even far exceeding the past 2 attacks.
2. The price is trading far below the lower BOLL band, with RSI at extremely oversold areas.
3. Net capital of XL and L orders shown higher inflow than outflow, suggesting institutions were scooping up the liquidity generated.
A nice movement up will cause shorts to cover and trigger a nice steep shortsqueeze into the 38-40 zone but lasting probably only minutes.
What should you do?
1. Set a trailing stop that starts below 28 at the opening bell. A hit below $28 (Jan’24 support) will help to cut losses. A squeeze up will help liquidate positions.
2. If you are able to stomach the lower lows, set gradual targets to liquidate portions of your position. $38 price point should be a nice spot to adjust your position size.
Note:
This is my personal view of what I observed. Not financial advise or any sort.
I’m in at $33, looking for a -5 / +10 risk to ratio play.
Godspeed, traders!
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  • Money Thrill : Indeed, may be possible but difficult to know future? Only bright spot... we don't know what caused the audit to be stopped. This has happened several times at Ernst & Young in recent years. I'll take a quick look at premarket and opening. Sell with loss or buy at 32 for DCA . But if i sell with loss i came break even because i selled some shares at 1130 dollars who i buyed at 440 ?
    Still, I find it extremely unfortunate that this is happening, but we don't know what is happening behind the scenes ? [undefined][undefined]

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  • cnkj OP Money Thrill : I added in heavy on premarket -6%. Let’s hope for the best.

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cnkj
I’ll like a glass of wine, some crayons and a typewriter
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