PLANET FITNESS STOCK | Stock Analysis And Trade Executions


hey welcome to taking trades this is your first time stopping in my name is Jimmy and this is a channel dedicated to day trading so today’s the 27th of February 2019 and I’m green again today so I’m really excited about that I took a short position on Planet Fitness today and it was a gap fade strategy so I want to show that to you today and kind of talk about why I entered where I did and why I exited ultimately where I did so I hope you all had a great day today I hope your green let me know what you traded if you have any questions let me know if you like the video give me that thumbs up and if you’re new to the channel hit that subscribe button let’s jump into it okay here we are ticker symbol P Ln T planet fitness so what you can see on this what caught my attention this morning was that Planet Fitness was gapping up and so what a gap up is is just a difference between the closing price of the previous day so this is the line demarcating the 26th on this side we’re in the 27th so if the closing price which is here is different so if you see a higher opening price then you do the previous day’s closing price that creates this gap and gaps act like vacuums anytime there’s a gap price action seems to get sort of sucked back towards it at some point not always immediately but at some point most gaps will will fill and close and when I say fill I just mean if it opened here then from this point to this point is where it would have to fill from the open to yesterday’s clothes so this action doing this today this is filling and ultimately at some point not gonna happen today it doesn’t look like but it will eventually likely close all the way to here and officially close the entire gap so with that being said I was watching this this morning and I’ll show you was kind of looking at some of the news that was coming out this morning and it was saying here at 5:25 a.m. that Planet Fitness stock price target was raised to $60 from 55 by Wedbush and there was just some other news they had a strong quarter for report they then later in the day it’s talking about more about the price target being moved to 60 so they had some good news going this morning which was sort of a catalyst and that in combination with this gap up sort of made this this stock in play it made me pay attention to it so what I was watching for here now that you can see the gap I’m gonna go ahead and put the pre market activity back on so this is the premium this is the after hours of pre market hours so I was watching this chart and I was just saying okay now that we’ve gapped up I’m kind of looking for support and resistance levels in the area so what I did was I said okay you know we’ve got the high pre-market high right there and then also it seems like this candle touched this area this candle sort of touched the area this candle so it’s kind of roughly if I you know maybe kind of said right here that’s sort of an interesting area because one two three and then eventually four and five you know multiple candles have touched it so my logic going into this was I want to look for a gap fade possibility meaning that I wanted to short this stock and have it drift and fade back to the bottom of the gap to close the gap but I wanted to be careful with my entry and I said okay if the stock pushes up in between these two lines 61 52 and 60 169 and then gets rejected and moves away from it then I’ll go ahead and and take an entry there and place my stop above the high a day and then let it just sort of work through the day and and do its thing so that’s exactly what I did and I’m gonna go ahead and show my trades now so what I did was you can see that right away we opened up pushed right through so I was just watching thinking okay maybe we are gonna go higher and breakout but then it got rejected right back down so this nice tall wick here is showing some selling pressure then we got this red candle here red candle here we pushed all the way down then we pushed up and had kind of a pullback retest so once we pulled back and then went lower I decided to get short at sixty dollars and 61 cents which was right in here right in here and from there what I did was I just put my stop above the high a day and the reason I could afford to take on that big of a risk was because I only went with 50 shares so the nice thing I like about trading gaps is that I can set a small share size with a good reliable stop not just an arbitrary you know ten cents or fifteen cents but literally above the high a day because it’s such a small position size so fifty shares that I was wanting to let kind of work throughout the day to try to close the gap now I realized that it’s tough to get a full gap to close all the time so my goal was to maybe try to get halfway halfway I would take profits just because you can see the range here you know would be a few dollars per share so I’d be very happy with that so I got in at sixty sixty one and then I just put an order in basically a bracket order where it included a stop and a target limit order to sell so if my position if it would have gone against me and ripped up they would have stopped me out and if it would have ripped down without me knowing and punched through where I wanted to take profits it would have acted me activated an order and sold for me so I sort of left it alone I went on to another stock I was looking at some other options and then it continued down and I kept setting alerts I like to you know during this price action here I set in a below the low of this candle I just set it right here and then went about my business and I’d get my alert it would trigger and I’d come back to and say oh okay it broke through and then I’d set another alert down lower and I just keep following it and checking in on the stock throughout the morning so you can see we got to about 10:05 a.m. and it’s sort of bottom dried here like it just sort of stalled a little bit we had some nice big bearish moves little pull backs bearish moves and then we kind of thinned out here and sort of slowed down so I said okay I’m gonna go ahead and just take 25 shares off there so at 58 57 I took 25 shares covered and then we rolled over again and then we started to push back up and I had actually moved my stop I was moving it down here at this swing low I moved it then here to this swing low then I moved into this swing low here and ultimately we got these two bullish candles that came ripping up and stopped me out and I was done at 50 and 88 with my final 25 shares so and you can see it didn’t go any further didn’t go lower so yeah I could have taken profit here you know that would have been a better exit but you know I you know hindsight I know I didn’t know that at the time and these were pretty bullish candles so I just didn’t want to risk working back up after I’d already had multiple points moving in my direction so really great morning ended up this trade closed it out at $94 29 cents profit I play I pay three dollars and 50 cents per order so cost me seven dollars plus the 350 so it cost me $10.50 to fully execute this trade so about 84 bucks ish right in that area of profit today on this trade so thanks for stopping in hit that subscribe button give me the thumbs up if you liked it and please let me know what you traded I’m curious to hear what strategies you’re using I’d be also curious to know if you use a gap strategy and if so how is it similar to mine or how is it different than mine I’d be very curious to know that so anyway have a great day and I’ll check in again tomorrow thanks

9 Replies to “PLANET FITNESS STOCK | Stock Analysis And Trade Executions”

  1. Hi Jimmy, love your channel!! Is shorting kind of risky? I have Think or Swim platform just starting to use options made 140 bucks on Visa probably beginners luck though oh not real money I’m papertrading so imaginary!! 😎

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