FSR trade delivered a textbook move of 50% in 3 days, the trades we love to take. Honestly, I could not take this trade but I always make it a point to learn from trades I missed. Why I missed in the first place. Let’s review FSR
Here’s what happened?
Feb 12, 2021: Morgan Stanley came out with a report stating that they find Fisker FSR as one of the most compelling EV stocks. The stock did pop ie made a gap up opening [Point 1]. They put a price target of $27. I ignored the stock because I did not find the reason compelling enough plus I was biased towards other EV players. In six days, the stock gave up all the gains and closed the gap [Point 2]. My gut instincts turned out to be right….nope wrong 🙁
On Feb 24 came the real news – Fisker FSR and Foxconn announced a partnership to work on an Electric Vehicle project and this news put the wings to the stock and in 3 days, the stock has rallied 50%.
What’s the moral of the story?
When things are going well for the stock, then be inclined to believe in the story than be dismissive about it. I wish I would have taken this trade. Better luck next time.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
I was happy booking profits yesterday at 24.45… It was tempting to buy back at 21 inbuilt stayed in discipline and skipped it looking at the redness in portfolio.