Highlighted Trades - 06/06/2024
We saw 39 trades today (26 long, 13 short) on 28 unique tickers. Let’s check them out.
Our biggest winner of the day was CI, where we made 0.48% in a single entry. I think the entry conditions here are pretty strong, albeit imperfect, but by the time a few candles have passed, the position gets much stronger. On entry, the MACD and momentum are great, but the cross is relatively weak, with neither line taking a hard slope upwards to mitigate that. In the next 10 minutes, both TK-lines start to climb steadily, making the position much more attractive. Overall, I would have at least given that first entry some strong consideration. The cross isn’t ideal, but the momentum is terrific, and with a steadily increasing MACD backing it up, there are some real positives here. Even if you decided to wait a few candles to see how the cross played out, you still had an opportunity to turn a profit with a later entry. It could definitely be better, but there weren’t really any opportunities to lose money here.
Our best short of the day was on LYV, where we made 0.25%. The problem I have with this trade is the flat Kijun-Sen line at our time of entry. That’s not a deal-breaker, but it’s a red flag. In this case, it’s like that because of the level set during open, just below $93.00. If you took this trade, you were either planning to get out around that price, or betting on a breakout. Given the insanely constant momentum going into this one, the breakout play was an understandable strategy. But we can see the momentum dying down as we approach that level. For this reason, I would have been looking to get out just below that $93 threshold. If you did, you made some extra profit here, but since we actually got out at $93.04, the improvement wasn’t anything crazy. This was a solid win here, but one that could have been better with some experience and strategy.
Our biggest loser for today was A - we lost 0.66% across 3 entries. This trade is really just unfortunate. There are some red flags with our initial entry (primarily the flat Kijun-Sen line, the inconsistent momentum, and the long wicks), but regardless: our system took it. If our first entry was questionable, our second one was even worse. The momentum is even less consistent, Kijun-Sen barely moving, testing a level that just got rejected, MACD more inconsistent - just a litany of red flags. If you took the first entry, I think it’s a questionable move, but still understandable. Both re-entries, however, were pretty obviously bad trades when we look at the chart. On paper, our conditions are hit, but overall this one is a great example for why it’s important to do your own due diligence while trading. Plenty of trades check out from a numerical perspective, but are obvious losers when a human sees a chart.
That’s all I have for you tonight - thank you for reading and happy trading!
