Highlighted Trades - 06/17/2024
We had a relatively quiet day - only 26 trades (20 long, 6 short) across 21 unique tickers. Let’s check them out.
Our big winner today is KMX. We made 0.99% here, between 2 entries. Our first entry is pretty textbook, but entering the second takes a little more finesse. The second entry is a bet on a breakout, which can be risky, but given the slope on both TK-lines, the magnitude of the green candles, and the steadily increasing MACD, I would have taken this play. It took a skilled trader to make maximum return here, but if you took that first entry, you didn’t really have an opportunity to lose money here.
Our biggest loser was comparatively benign; we lost 0.25% on HSY. I don’t have any major problem with our initial entry. The cross is a little weak, which makes it questionable to entry on a green candle questionable, but given how close price action was to the Tenkan-Sen line, this was a low risk move. The second and third entries, to me, are difficult to justify. The main reasons for this are the rapid exit/entry patterns, and being way too close to the Tenkan-Sen like, to the point that our candle actively intersects it during our second entry. This is a pretty useful distinction to make. Our first entry candle is close, but not right on the top of the line, making for a low risk play. Our second and third entry are much closer; it’s obvious that they’re going to be stopped out almost immediately.
The last trade I want to highlight tonight is this long on COST, which returned 0.87%. Contrary to our last trade, the candles are relatively far from the Tenkan-Sen line during our entry. This means there’s a greater ability to lose here, so I’d normally look for especially strong signals to offset that risk. And in this chart, the momentum accomplishes just that. The bullish momentum is strong enough here that, not only does the extra risk become acceptable, but it becomes perfectly reasonable to bet on the breakout play here. Combine that with MACD steadily increasing over the last 8 candles, and you’ve got a recipe for a real winner here.
That’s all I have for you tonight. As always, thanks for reading and happy trading!
