.....you probably shouldn't trade stocks. At Friday's close, the RSI was in the mid-80s after a parabolic pps rise. Without any news to support the move, and the "Cooperman Effect" dissipating, investors were looking for an excuse to sell. (And shorts were more comfortable near $7 than they were a week ago.) The excuse came today in the form of a sizeable drop in oil and NG prices on a generally weak market.
I am bullish on SD but sold my shares last week. I plan to buy back below $6.45 which represents a 50% retracement of the move over the last two weeks. I will be back to a full position before Q3 ER
The "Cooperman Effect" was a reason to buy. Most small time investors, you probably included, follow their favorite Hedge Fund mgrs. which helped the RSI rise to 80. When the RSI goes to 30 is when you want to sell. Only shorties sell when the RSI reaches 80, not investors.
BTW, NG went down again today and future use of NG is down because of good weather.
The last time the RSI was at 30 was April of this year. That's when I began to buy with a purchase of 4,000 shares at $4.61 on April 18. I have always wondered whom to thank for selling me those shares. So a big THANK YOU to you for over $8,000 in profits. FYI a RSI below 30 is typically called "oversold"; above 70 is called "overbought".
You day traders who trade on technical data amaze me, I hope you do well "jacking" in and out of stocks, it just never worked for me. I am sticking around for earnings and right now I am feeling they will justify a higher valuation. I might collapse my position in the 7s, on a spike, giving myself more time (next quarter) to get back in. Trading in a 10-day window carries too big of risk of getting whip-sawed.
Everybody on the Planet wants to BUY SD below,.. $6.45 !
I could use a couple more thousand shares myself,.. BUT,.. NOT,.. going to "happen" !
Only 11,.. "Trading Days",.. to "blowout" earnings !