Trade Review - $PROK 7/9/25

Category of Trade - Day 2 Gap Up Context - ProKidney Corp. ($PROK) gapped up %100 on July 8th on news that they had achieved positive phase -2 data for a kidney disease trial. They had sold $7.9M via their ATM (at-the-market offering) as of March 2025. According to the company they expected their cash to last until mid 2027, but seemed likely they would take of advantage of this gap/liquidity to raise more money via ATM or do an offering.

Daily Chart:

Intraday Chart:

How I traded it:

I started short in premarket, added on the opening breakdown but it held so I had to cut it. Re-entered on the premarket high fbo, which also held so had to cut it again. Finally started topping out and I got the signals to short it full size. I scaled out as it started selling off towards the previous hod which is a target I like to use for this setup. I shorted the bounce after it bottomed at 4.50 looking for continuation lower. Lessons Learned:

There was one unneccesary cut after the first stop out. I reacted too quickly to price action without any confirmation, thinking it was going to fail right after I initially stopped out. MM's do this intentionally to fool you. Only other thing I would change with this trade it my initial covers on the winning trade. If i'm going to take some off at the intraday lod pivot (in case of double bottom), I need to be putting those shares back on if the thesis hasn't changed or price hasn't moved back up to a level invalidating the overall setup.