GMCR is quickly approaching T1 on the 4 hour chart. personally, i just recently took profits on the shares purchased in last night’s AH session at 23.26. although this pattern still looks healthy, keep in mind that a good percentage of the 33% move so far today is short covering, as this is/was a very popular target for the shorts over the last year (myself included). there’s no doubt that a good percentage of those shorts that stayed too late to the party are getting squeezed out today. therefore, i am moving up the first target to current levels (23.81) and suggest taking some or all profits here if T1 was your original target.
if my near-term view on the market wasn’t so bearish, then i’d probably hold out all the way to T1 for at least 1/2 my shares, if not all. however, short squeezes in heavily shorted stocks like this, as powerful as they are, can be very fleeting, often just one-day wonders. therefore, consider taking some profits or at least trailing your stops up. yes, GMCR still has potential to as a long-term, bottoming play so nothing wrong with sitting tight if you are an investor or longer-term trader but even then, now would be a good time to at least raise stops to your average entry price, assuming that you were scaling in around the 18.00 area. the 20.70 area should also act as support with two distinct gaps so maybe a more liberal stop around the 20.50 area for longer-term traders.