It's a "small cap Chinese" name so can rise or drop 10% on any session for no particular reason
And true to form in the time I bought it, it jumped sharply in the first day or two, and then has dropped sharply reversing all gains... all on no news.
I had a stop loss to dump half the position if it fell below $11.40 which happened this AM. The stock has now fallen all the way to the 50 day moving average, where it is currently resting. If it does not bounce here, I will dump the rest next week simply because it's not acting well.
I don't think there is any specific news or reason (the company sold a small subsidiary today)... as I wrote in my original piece on this stock, I doubt it was held in strong hands and when a stock full of retail traders begins to break down they will leave, especially the momo types. There need not be any change in the story.
I took about a 9% loss on the half I sold and the rest sits at a 13% loss. This is really the only losing position I am sitting on. (I was +8% on the position the day after I bought it...that's how quickly these small cap Chinese stocks can turn on you and why they are not to be used as a base for a portfolio, only as speculations) I still like the story.
p.s.an aggressive trader can buy the stock right here at support and stop out if it breaks down.
Long L&L Energy in fund; no personal position
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