A friend of mine probably got out around August 16 or so, for the ticker $SNDK (this is a flash sale). Then on the 18th, it roughly surged to 1800+ . At the time, he was in a rush and frantically wanted to buy some U from me to top up his position. I almost got blown up with him. Luckily, he held on. The past couple of days, $SNDK dropped to around 1400+, so he should have eaten a big chunk of it. I saw him short as well, so I took a small short position too, and also ate a little 😃
But this time, even though it was a lucky win, it also exposed the huge risk of shorting extremely high-volatility products.
A few days ago, $SNDK followed the trend and probed down to around 1400 (the low touched about $1416). To a large extent, this was a concentrated liquidation of the earlier疯狂逼空行情 (manic squeeze). A large amount of long profit-taking helped drive this rapid pullback on the scale of several hundred million dollars—actually, “hundred-million-dollar” level, i.e., a very fast, big correction.
However, the price action showed quite strong buy-the-dip demand in the $1400–$1430 range. Then it quickly rebounded back above $1500 (it’s currently consolidating around $1523), which suggests that both bulls and bears have already formed an intense standoff again at this level.
In the short term, it looks like range-bound trading ($1420–$1600). After such a brutal washout—quickly turning down from the $1800 high and then quickly snapping back from $1400—short-term indicators need to repair. Over the next few days, it likely won’t immediately launch a one-way major move. Instead, it should trade in a wide range between $1450–$1580, digesting the trapped positions and profit-taking from earlier.
Resistance above and support below: The $1580–$1600 area has already flipped from an earlier support zone to a strong resistance zone. Without a fresh catalyst for huge gains, it’s difficult for it to break through decisively in one go. And $1420 is the key structural defense level; if it loses that again, there’s no ruling out a move lower to fill the gap and test around $1300–$1350.
Risk warning going forward: Stocks like $SNDK —highly concentrated, high-beta tech/storage concept names—have extremely high volatility. This time your friend got lucky: he managed to hold through the short squeeze from $1800, and then regained some money. It’s basically “operation mistakes, but luck saved the day.”
At the current level of $1500+, it’s not clear which direction will dominate. If after a few days it stabilizes and then a second rebound appears, shorting blindly against the trend with high leverage can easily get the market to educate you again. I’d suggest that after he takes some profits, he should first wait and observe—then act only once the daily timeframe shows a clear range-break signal.
#闪迪暴跌
But this time, even though it was a lucky win, it also exposed the huge risk of shorting extremely high-volatility products.
A few days ago, $SNDK followed the trend and probed down to around 1400 (the low touched about $1416). To a large extent, this was a concentrated liquidation of the earlier疯狂逼空行情 (manic squeeze). A large amount of long profit-taking helped drive this rapid pullback on the scale of several hundred million dollars—actually, “hundred-million-dollar” level, i.e., a very fast, big correction.
However, the price action showed quite strong buy-the-dip demand in the $1400–$1430 range. Then it quickly rebounded back above $1500 (it’s currently consolidating around $1523), which suggests that both bulls and bears have already formed an intense standoff again at this level.
In the short term, it looks like range-bound trading ($1420–$1600). After such a brutal washout—quickly turning down from the $1800 high and then quickly snapping back from $1400—short-term indicators need to repair. Over the next few days, it likely won’t immediately launch a one-way major move. Instead, it should trade in a wide range between $1450–$1580, digesting the trapped positions and profit-taking from earlier.
Resistance above and support below: The $1580–$1600 area has already flipped from an earlier support zone to a strong resistance zone. Without a fresh catalyst for huge gains, it’s difficult for it to break through decisively in one go. And $1420 is the key structural defense level; if it loses that again, there’s no ruling out a move lower to fill the gap and test around $1300–$1350.
Risk warning going forward: Stocks like $SNDK —highly concentrated, high-beta tech/storage concept names—have extremely high volatility. This time your friend got lucky: he managed to hold through the short squeeze from $1800, and then regained some money. It’s basically “operation mistakes, but luck saved the day.”
At the current level of $1500+, it’s not clear which direction will dominate. If after a few days it stabilizes and then a second rebound appears, shorting blindly against the trend with high leverage can easily get the market to educate you again. I’d suggest that after he takes some profits, he should first wait and observe—then act only once the daily timeframe shows a clear range-break signal.
#闪迪暴跌
