Highlighted Trades - 03/26/2024

We saw 14 trades today - 5 long and 9 short - across 10 unique tickers.

Our biggest winner of the day is MTCH, where we made 0.6% on a long position. This was 1 entry and exit, with no re-entries. This is another one of those positions that has red flags, but mostly only on paper. The Kijun-Sen line is flat going in, but with strong bullish momentum and the stock approaching new highs for the day at our time of entry, a human trader can easily recognize that as negligible. The TK-cross also inverts itself shortly after our entry, but by the time there was any sign of exit, the cross had resumed and was fairly strong. Even though, on the surface, this trade might have looked questionable, I’m confident that a skilled trader would have recognized that our usual red flags didn’t hold here. Even if you’d waited until the Kijun-Sen line had started moving and the cross had become stronger, there was still money to be made here.

Our biggest loser of the day was a series of shorts on BLDR, losing us a total of 0.37%. The initial entry looks fairly enticing, but by the time any of our re-entries came up, the MACD had become much weaker. It was fluctuating heavily, and while it was technically negative at our moments of re-entry, the magnitude was much smaller than on our initial move. It’s difficult to evaluate algorithmically, but visually, it’s a clear sign of sideways price action and a lack of momentum.

The last trade I want to highlight is our best short of the day - on TER. We made 0.32% here, with no re-entries. This is a solid trade for many of the same reasons our biggest winner of the day (the long on MTCH) was a solid trade. Even though the return wasn’t as high, I like the entry on ere better - the cross is much more pronounced, and strong right away.

That’s all I have for you tonight. Thank you for reading - and happy trading!