When you get an oversold downgrade (stock gets slammed too much that day), you BUY! Boot Barn Holdings ($BOOT stock) got killed -18% on a downgrade from JP Morgan today with the price target lowered from $11 to $7. The move was excessive in our opinion so we started buying around $6.51 near the intraday lows.
There was no put buying or activity in the name to support this down move. In addition, Goldman Sachs disclosed a 5.2% in $BOOT in early February and our entry point was close to where Goldman announced their stake. (Goldman Sachs is king.) The tape showed a buyer came in so we started buying it up. Sold the position 25 minutes later into strength.
This was not a big trade but one that was very simple and stress-free and thus we are making an example out of it. Skills we used in the trade: tape reading, fundamental analysis, technical analysis --> if all 3 tell us to buy, then its a perfect trading setup!
Net Profit: $3102