Highlighted Trades - 04/23/2024
We saw 8 trades today (3 long, 5 short) on 4 unique tickers. Let’s check them out.
Our best trade of the day was a short on CVS, consisting of 4 total entries and returning 0.33% between them. I like the initial entry a lot; I’m less sure of the re-entries. Between our first and second entry, MACD goes from solidly negative, to slightly positive. While the MACD does swing back, it’s substantially weaker than during our initial entry. This isn’t too egregious - plays with weak MACD’s still work pretty often. But our final entry is the only one that I think I would have refused outright. The MACD differential is negative at that point, but only by the slimmest margins, and it’s following a long stretch of largely neutral MACD. This trade was a solid winner, but an experienced trader definitely could have improved it.
On the other side, our worst trade of the day was this long on PHM - losing us 0.76%. If you took this trade, I completely understand. The MACD is solid, the TK-cross is strong, and the momentum is terrific - only dying down a bit - when we enter. I will say that I wouldn’t have taken any re-entries on this, as the momentum went completely sideways after this, but our system never called any re-entries anyways. It’s unfortunate that this trade didn’t work out, but visually, I don’t see any red flags severe enough that I would have turned it down.
The last trade I want to discuss is this short on MOS. This was a very slight loser, costing us 0.02%. The momentum is great going into this position, but the Kijun-Sen line moving upwards is a red flag here. That didn’t happen until after our entry, so it wouldn’t have stopped anyone from taking the position, but it would have been a good sign to exit early - making a small profit if you did so immediately. The loss here is small enough that’s not much to worry over, but it’s worth being aware of red flags like this one, especially if you’re live trading this system.
That’s all I have for you tonight - thanks for reading, and happy trading!
