Highlighted Trades - 07/01/2024
We’re starting July off with a pretty active day - 51 trades, compared to our usual average of about 40. Only 4 of these were long - the other 47 were all short positions, and they covered 43 tickers in total. Let’s check them out.
Our big winner today was ISRG. We made 1.24% off of our 1 position here. Momentum and MACD are both solid on our entry. The cross is a strong one here, with a very large angle between the Tenkan-Sen and Kijun-Sen line as well, which is nice to see. I definitely would have taken this entry. It’s not overtly excellent, but there are no major red flags in play here. I also think the exit is really agreeable here. While theoretically you could have made more bu getting out on the 12:00 candle, there was nothing to indicate that. If I were holding this one, I also probably would have jumped ship on the first big green candle we saw. Overall, this is a really nice trade. It could be better, but given the circumstances, I’m happy with this one.
Our big loser today, DXCM, lost only 0.67%. Unfortunate to say, but I would have taken this trade. The only real red flags are the flat Kijun-Sen which hints at testing a level, and as expected, the support level established during the opening stretch. If you took this position, you were betting on a break-out play through that level we saw on the 9:35 candle. Momentum isn’t perfect, it’s pretty inconsistent, but its very directional. The price action would eventually break through that level, but not until after first bouncing off of it, through both TK-lines. You would have made a great profit here if you ignored the stop signals, and just held until the TK-cross reverted, but that’s a high risk strategy, and there were no major signs to indicate that move. It’s unfortunate that this trade didn’t work out, but that’s just the nature of markets. No matter how good your entry, sometimes you just lose.
Lastly, I’d like to examine one of our long positions. We made a modest 0.37% off of this long on MS. The entry here isn’t bad, but it’s pretty questionable. For one thing, the Kijun-Sen line sloped downwards right before our entry. This isn’t necessarily a red flag - on this case it just indicates that we’re getting further from the high of day we saw earlier - but it’s not ideal. Additionally, the MACD is positive and increasing, but it’s pretty weak, especially when compared to the magnitudes we saw earlier that day. The strong momentum helps to mitigate this, but I won’t say for certain that I would have taken this trade. It worked out great, and it’s entry conditions are okay, but there are enough red flags here that if you didn’t want this one, I think it’s very understandable. I want to remind everyone that this isn’t financial advice. We would never advise you to take a trade without first doing your due diligence and reaching your own conclusions.
That’s all I have for you tonight. As always, thank you for reading and happy trading!
