Highlighted Trades - 06/24/2024
Today was average volume-wise, but long-heavy. We saw 41 trades on 29 tickers today. Of these, 32 were long and only 9 short. Let’s check them out.
Our winner today is DD. We made 0.76% on our one entry here. Our entry conditions definitely could have been stronger here, but overall I think this is a solid play. This trade is a breakout play, betting on price action pushing through the $81 - $81.10 threshold. It’s tested that threshold previously during the day, but never with steadily increasing and positive MACD. I’ll be blunt here - we got lucky with this trade. The entry conditions are perfectly solid, and I’m not at all surprised this trade turned out to be a winner. But this position had no business making as much money as it did. That said, we see losing trades all the time that lost mostly because we got unlucky - so it’s not surprising that we see some winners that win big mostly out of luck.
On the other hand, our big loser today is WDC - losing 0.55% over 3 entries. I think our first position has a relatively strong set of conditions. The cross could be better, but looking at MACD and momentum, it has the makings of a winning trade. Our second entry, however, is pretty easy to spot as a loser. The momentum is much weaker, and its proximity to a recent stop-out makes it pretty unlikely that it’ll pan out before being stopped out again. Trades like that (i.e. entries right after stop-outs) aren’t inherently unwinnable, but you need pretty strong conditions outside of that to justify taking that risk. And here, the momentum and MACD just aren’t present like we’d want them to be. The third entry I would ignore simply because it follows 2 substantial losers. I think most traders would agree here, and if you indeed only took that first position, you capped your losses to a more reasonably 0.26%.
Lastly, I want to shout out our best short of the day. We made 0.39% on TXN here, and the conditions are practically textbook. The cross is strong, both TK-lines slope downwards, momentum is great, MACD on a great run - I 100% would have taken this one. We do almost get stopped out, but this system’s more forgiving stop loss ruleset prevented that, and for that reason, this one ended up being a solid winner.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
