Highlighted Trades - 06/18/2024
We saw 37 trades today (23 long, 14 short) across 34 unique tickers. Let’s check them out.
Our big winner today is LW - we made 0.82% on our only entry here. I think our entry here is solid, but there’s some nuance to it. First off, this is a breakout play. That’s visually obvious from the chart, and our flat Kijun-Sen like helps to confirm that. I would say this is a relatively safe bet. The MACD isn’t ideal, but it is negative; the previous time this level was tested, MACD was still in the green. Momentum is inconsistent, but also stronger than the last time the level was tested. Add that to the downward slowing Tenkan-Sen line, and you’ve got a solid enough trade here. If you weren’t sure, you could have waited until the 15:15 candle, where the level was firmly broken and the Kijun-Sen line also began to slope down. You wouldn’t have made as much profit entering there, but I think the entry conditions on that candle are more indisputable.
Our big loser is ILMN; we lost 0.44% on our entry here. Overall, I actually really like our entry here. Momentum is great, cross strong, both TK-lines sloping down, and MACD nearly textbook. Our entry candle is also a breakout, which further sells this. The only real red flag here is that the chart is a little choppy, but it’s not major. In addition, choppiness isn’t what ends up turning this trade into a loser. All things considered, it looks like we just got unlucky on this one. Unfortunate, but that’s the nature of the market. No matter how great your entry, there are no guarantees (unless you’re playing arbitrages).
The last trade I want to highlight today is this long on AES. We made 0.65% here, and it’s a good example of a trade where diverging TK-lines are a false red flag. The Kijun-Sen line spikes downwards after our entry, which could normally be a sign of rejection. However, if we look back, 26 candles before our entry is a group of mostly flat pre-market candles. For this reason, their impact on TK-lines needs to be de-emphasized. I like this trade because it helps to demonstrate something important about trading: there are few, if any, hard rules. And before determining if your signals warrant entry into a trade, it’s important to evaluate not just what they are, but why they’re like that. That extra layer of understanding changes a lot of trades - this is just one example.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
