Over the last month or so, I have made my bullishness on STNE very clear with my multiple purchases of its call options.
My first purchase was back in early January.
Announcing the plan, I predicted the following:
“This is a relatively small tracking position for now but once the stock breaks its bearish resistance line on its PnF chart, and I expect this to happen in the next few days, and potentially as soon as this week(!), I will add to my position in a more meaningful way.”
Clearly I am not very good at predicting and should stop trying to be a prognosticator.
Instead of the bullish break I was expecting, the stock tested my patience and went down and formed another set of Os with a new 3 box reversal.
While waiting for the expected break, I actually added to my STNE position a couple of times and also wrote a post explaining Why I am Bullish on STNE…
And then it happened.
Yesterday morning, STNE finally rallied, and strongly, and within the first 10 minutes, not only did its PnF chart switch back to Xs, it also broke a triple-top and yes, it also broke through its bearish resistance line all in one fell swoop!
Better late than never, I felt vindicated and started counting my expected profits.
An exuberant friend texted me and bestowed on me a moniker that starts with a W!
And then, the bottom fell out and STNE started to tank and actually closed down for the day and all my expected profits evaporated into thin air. Whoosh!
So what happened?
Short Answer: Nothing.
Long Answer: Market Makers’ shenanigans and a forced pullback.
Almost exactly a month ago, on January 10, a very similar move played out with another one of my holdings: GCT and I wrote the following post:
UPDATE: Trade Plan for January 10, 2024.
Now look where GCT is today…
Like GCT, I expect STNE to also go back up because the buy signals, yes plural, on its PnF chart shown above are way too bullish to ignore.
Uh-Oh! But wait! Before anyone heaves a sigh of relief, remember, and as noted above, I am a lousy prognosticator! ☹️
Happy Saturday!
karim
DISCLAIMER: I am not a licensed broker or securities dealer. All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is not for the faint of heart as one’s portfolio can move up, or down 10%-50% or more during a single trading day, so trade with extreme caution. Past performance is no guarantee of future results.
Full Disclosure: I own options in the stocks of companies mentioned in my posts