Strategy Description: This is the same as yesterday, but it is so important to grasp the importance of when to the pay breakouts/breakdowns versus look for the low risk entry into trend. Majority of the time you should look for low risk retracement to get in. However, situations where you might not are (1) During the open on high volume, (2) Fresh news catalyst plus volume, (3) Paying is close enough to the risk spot so it doesn't matter, (4) The close, (5) Bigger picture plus intraday setup where the bigger picture potential outweighs taking bigger risk.
However, these situations don't occurs very often (say 30% of the time).
In this case, GENE is float rotating with enormous volume, the most so far on the open. After an opening drive it is holding near the highs, and above yesterday high. So thesis becomes to get long, however, should you miss the dips within the flag it is fine to pay the breakout.
Technical Analysis: It is incredibly important that it is holding above yesterdays high, plus record volume.
Reading the Tape: This one should be very obvious on the tape given the volume. However, I wasn't watching it so I can't comment, but as a general jist you should see the speed and velocity of volume, which increases as it breaks out of the flag.
All down wicks should be aggressively bid back up.
Trade Management: It is incredibly important to sell this position into strength, the reason being is that it is a chase (albeit a safer chase than in other scenarios). Cover risk at 2R-5R and then look to read the tape to get the final exit.
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