Got destroyed on EFOI

Yesterday before the close I bought EFOI and TROX before the bell. Here are the circumstances under which i bought them:

  1. I was feeling nervous because of OCLR gapdown, pulling money out of citi to put into stocks.
  2. I hadn’t meditated in 3 days
  3. I was in a state of aversion to the feelings i was feeling and the dread i was feeling about not being able to perform in bed (later dispelled :D)
  4. I was rushed to buy because i only had 10 minutes before the closing bell and didn’t do perhaps all the research and thought process i should have before buying.
  5. Stock details:
  6. EFOI was in a beautiful looking pattern at first glance. big runup with 8 days of tight closes above the 200 day, well above the 50 day, and right at the rising 10 day.
  7. It was also a pocket pivot day when i saw it. HOWEVER, THE CANDLE WAS GREEN BUT CLOSED BELOW THE HALFWAY POINT OF THE RANGE!
  8. ALSO, THE LAST 8 TIGHT CANDLES WERE WEDGING UP EVER SO SLIGHTLY.
  9. I also didn’t check when the earnings date was, it was the next morning.
  10. I should have also taken clues from the after hours activity where price sold down to 12.25 from 13.20 closing price.
  11. I read the earnings transcript from november and the company seemed to be growing at a stellar pace. I thought it was a home run. Turns out, the expectations were too high and earnings missed by 26% on military budget making standstill which has since resolved but will show up more in the next two quarters. OUCH!
  12. Was down to 9.50 when i checked prebell. closing now at 7.75
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s