CoreWeave (CRWV) IPO breakout update
So here is an update on my CRWV position – I have trimmed the position to 2000 shares. I sold 2500 shares yesterday at a price of 54.30ish and then this morning I sold another 1000 premarket at 51. It doesn't look like it's going to be the gap and go--which was the A+ clean momentum scenario that I wanted. And I am expecting some kind of consolidation so I decided to lock in profits into a more manageable position where I can sit and not worry about the swings.
Here's a nice execution chart from yesterday from one of my accounts on it:
Core weave is a trend following/momentum play – and this is not my specialty compared to mean reversion plays. I am hoping these are easier to manage with trailing stops and you just let the stock go crazy if it wants. Sometimes mean reversion plays or support/resistance plays, you need some finesse to exit and get a good price and secure the good trade. An example of that would be my crypto short from last week. Once the market opened Monday in a hole and crypto stopped going down with btc holding 81k and ETH holding 1800--I knew this was the scenario to cover. And I should probably have covered everything given that I didn't label this an A+ trade. Instead--I covered 75% of my position and left 25% of it on. I ended up covering yesterday into strength as ETH got above 1900. This is a pretty bad exit where I just wanted to dump it and get the position out of my mind space (which didn't even work because I keep looking at it fade back to the range and raking myself over some coals about how shitty an exit that was, even if it was a partial position). The quantum short from 2 weeks ago had a similar ending for me where I nailed the fundamental tenants of the trade but I kinda screwed the pooch on the bonus money to let it run. Staying on positive psychology on a trade is a difficult challenge for me. I am an entitled perfectionist, which is a bad thing to be when there are so many outcomes that can occur in markets. Even great trades where I am up a lot, I can find my psyche souring quickly when things don't unfold the way I feel they should.
I am now down to 2000 shares. I think it's a hold for a few days and see if it's "special" and can find a squeeze leg. They wanted to price this IPO at $55 in a stronger market so even at this price, it doesn't feel out of line yet. It's possible it could pick up some short sellers who want to enter in this strength. Hard to say. If I put on my bear cap for this play, I wouldn't even touch this until at least $75.
BTW, a younger verison of me would have traded NMAX yesterday--likely on the short side. He probably would have lost a lot of money. I am retired from that game, I don't know WTF will happen there. If anything, I should understand how to buy that breakout--not short it.