Highlighted Trades - 04/30/2024
Today was relatively active. We saw 19 trades (3 long, 16 short) on 11 tickers. Let’s check them out.
Our most profitable trade today was a short on AMAT, with 1 re-entry. Between them, we made 0.81%. I don’t think I would have taken that re-entry (MACD is much weaker then, and had briefly been positive), but the conditions are fairly strong on our initial entry point. The main way we could have improved this trade was ignoring that first stop-out, but given conditions at the time, that would have been a fairly risky and counter-intuitive move. Regardless, if you took this trade, you almost definitely had a solid win from it.
Our worst trade of the day was this short on BXP, losing us 0.44% across 2 entries. On paper, the entry conditions are solid for both of these. There’s some argument to ignore the second entry, since the price is already testing a support level established during open, in addition to a relatively flat Kijun-Sen line, but neither of these reasons are particularly prominent in the chart view. The momentum is also significantly more sideways during our re-entry, which is another red flag for it. Overall, I would have taken that first entry, but the second is more questionable. It’s fairly understandable if you did take it, but there were a few solid reasons going against it.
The last trade I want to highlight tonight is this pair of shorts on EFX, as an example of a great re-entry. We made 0.81% here in total, with all of that profit coming from our second entry. This trade is actually a bit counter-intuitive, since the momentum is significantly weaker at the moment of our second entry, when compared to our first. The MACD is a bit stronger during our re-entry, but it’s still pretty weak overall. The trade worked out great, and on a technical level, all of our signs are present, but there are some solid red flags that make the re-entry hard to ignore. If nothing else, this trade serves as a point that no red flag is a hard rule. If the signs are present, and price action is there, any time can be the right time to get in.
That’s all I have for you tonight. Thank you for reading, and happy trading!
