ACMR makes it an interesting week

I woke up this morning just before 9:30 so I could make a play at the market open on ACMR. I spent a good hour and a half looking at charts last night looking for a quick point play. What I liked about ACMR was purely technical. The market has been getting hit pretty hard and the stock has taken a hit as well, falling pretty far. But, the big factor here was the volume on these falling days, and to my surprise I saw only one distribution day last week on October 6th. I also like the spread there is away from the 50-day moving average. Companies will sometimes take a quick movement upwards to close that gap.

Either way, I found the chart to best fit what I was looking for and at the open I put a limit in for 250 shares at $16.90. Early on the stock took a quick upswing, and I only could get in 32 shares or some small increment at my price. This isn’t any good for me because as the stock climbed above $17 I didn’t want to cancel the rest of my order, that would be $10.99 down the drain, so I let it sit (looking back now I should have set the order to “all or none, AON” because that way I either get my whole order filled or it doesn’t fill at all). I went back to sleep (this whole process took maybe 10 minutes), and awoke at around noon to the stock all the way down at $16.60.

Now I went to sleep thinking maybe it’ll run to $18 and I’ll make $10 off the deal, but finding it down (my remaining order got filled at $16.90) wasn’t anything exciting. The question then becomes what will it do on the day, and where is the intra-day support? The intra-day support seems to be at $16.60, which as I type this (2:12pm) just got broken. A distribution day seems to be at hand, and I am puzzled to say the least. I am going to put a stop loss at $15.90, which if it hits then I will accept a loss of about $274 after costs. Watching the buying behavior though I am still bullish on the stock, and I still feel I got a 50-50 shot for the stock to climb to $18 by the end of the week (so in three trading days).

Watching and waiting is now the game, but in the end it is just another day of fun for me. I bought some October 30 puts on NDAQ for almost nothing, betting a $1,000 that the stock is over extended and will retract naturally. This trade was done in my simulator, as I have not added margin approval to my Ameritrade Apex account yet. Oil is on the rise again, hopefully this doesn’t weigh on the even market we have so far today.
Regards,