Highlighted Trades - 03/27/2024
We saw 8 trades today, uniquely, all of them long positions. I wouldn’t call this highly unusual, it was bound to happen sooner or later with the pickier system, but it’s still an interesting day. These 8 trades were made across 5 tickers.
Our best performing ticker of the day was RCL, where we made 2 trades for a total of 1.72% return. And I have to say, there’s a lot to like here. The initial entry has beautiful momentum, which is still present when we take our re-entry. The cross is strong, the MACD is solid and remains so throughout the life of the trade. Overall, this one is ideal. It’s a near-perfect entry, with incredible performance. There was only 1 chance to get stopped out early, and if you did, you were met with an immediate re-entry for even more profit. No notes - excellent signalling here.
By comparison, our worst performing ticker of the day was fairly benign - losing us only 0.17%. Looking at the chart, I probably would have taken this trade. The entry signal looks solid, it just doesn’t work out. It’s unfortunate, but inevitable. Not every losing trade will have an obvious warning sign. Ironically, the signal was correct on some level. If you had taken a long position when the TK-cross hit, and held until the cross reversed, you could have turned a profit here. We also might have had a positive return if we’d taken a later re-entry opportunity, but our system doesn’t take new positions too close to the end of the day. For a “worst trade of the day”, this one really isn’t bad. The loss is minimal, and depending on how you handled your exit/re-entry strategy, there were a couple of opportunities to turn it into a winner.
I’d also like to note this position on MDT, as a fairly clean winner. The entry conditions are solid, and we hold right until close. Looking at the chart, we never even had an opportunity to get stopped out. We don’t hold positions over night with our current system, but you might have chosen to do so. Once again, no notes - this is a very clean and successful trade!
The last set of trades I’d like to discuss tonight are these 3 long positions on MS. We actually turned a slight profit on our initial entry, but both re-entries were losers, so in total, we lost about 0.07% here. That’s mostly in the black, but it’s still worth examining the re-entries. I actually quite like our first entry here. The stock had been a bit stagnant that afternoon, but there was some clear directional momentum when we got in. There are 2 reasons I don’t like either re-entry. First, the TK-lines stay roughly a constant distance from one another after the initial cross. Secondly, neither is sloped upwards. For a bullish position, both of these together form a warning of stagnation - a lack of momentum. This isn’t a major problem or anything - the loss we took here was pretty minimal - but it’s a good warning sign to look out for.
That’s all I have for you tonight. Thank you for reading, and happy trading!
