Highlighted Trades - 06/27/2024

We saw 55 trades n 43 tickers today. Of these, 23 were long and 32 short. Let’s check them out.

Our big winner today was PKG - we made 0.56% from 1 short entry. No qualifiers here - these entry conditions are fantastic. Momentum is solid, MACD is textbook, and both TK-lines are sloping downwards. The stock is a little bit choppy, but not to the point that it’s concerning here, in my opinion. Even our exit is nearly perfect, getting out fairly close to the low of the afternoon. There’s no “but” or “however” coming - this was a great trade and I would have taken it.

Our big loser today is COO. We lost 0.28% between 2 short entries. I think our first entry looks good. The only real red flag to it is that the TK-cross is a weaker one (TK-lines are stuck together prior to the cross), but given how everything else was going in its favor, it’s understandable if you considered that red flag to have been mitigated. That said, I would have disregarded the second entry owning to its closeness to the Tenkan-Sen line. If you did this, you capped your losses to 0.13%, but overall, this one was a fairly minor loser.

Lastly, I’d like to discuss an example of a weaker TK-cross that actually works out. This was a long position we took on AJG, returning 0.51%. As mentioned, the TK-cross is fairly weak here - with an extremely shallow angle. On paper, that’s a problem, but everything else is in place for this trade. MACD is steadily increasing, and positive for the first time that afternoon. Short term momentum is also solid, hinting at a successful breakout play. The lesson here is that there are really no hard rules - every trade is unique, and must be evaluated individually. For this reason, it’s important not to consider the algorithm’s signals to be hard rules either. This is not financial advice; never take a position without doing your own due diligence and reaching your own conclusions.

That’s all I have for you tonight. As always, thank you for reading and happy trading!