You’ve seen those signs while traveling by car, “last chance for gas for next 60 miles” or “next rest stop 45 miles”. I love those warning signs simply because I have a tendency to milk that last bit of gas in the tank, assuming that a station will be close by off the next exit. But what if the next exit is 60 miles away? I don’t know about you, but personally, I’m stopping for the gas as there’s just no sense in taking chances, right?
Thinking about opportunities in markets pretty much works the same way. After all, life equals markets. At least that’s how Trader Scott and I feel. And when you see an opportunity, it’s a pretty good idea to jump on it because it may just be the last chance for a good long while. I was presented with this very thing Thursday morning so I pulled over and stopped for gas.
Remember CNET? It rallied on January 4 when it gapped up from 1.23 and rocketed to a whopping 11.90. Trader Scott mentioned in the pre-market comments in the morning that very day BTW. Hopefully, some of you listened and bought it and sold it. Regretfully, I did not trade it as I had my attention on other symbols, but since then I have been looking to make up for that lost opportunity. I found it yesterday as I got into the stock at 3.83; it had taken quite a little tumble on share offering news which is typical.
A press release was issued that the offering had been closed and the company had raised 11 million dollars so the stock started moving pre-market. I watched it hit a high of around 4.60 and I put in a limit order to sell half of my shares. It didn’t get a fill so I lowered the limit to 4.50 and got a fill.
The market opened and the stock price briefly hit a high if 4.80 before falling and continuing to fall to a low of 3.88. It’s too bad that I didn’t sell the whole position, but that’s precisely the point. We have no idea where these things are going so when there’s an opportunity to take some profits, it’s a good idea to do so. It could have opened and immediately fell. The only thing we really know about markets is that we don’t know anything. Better to have a half full tank of gas than no gas at all.