First off, please note that I am a swing trader. When I enter a position I am looking to hold anywhere from 1 day to 3 months depending on the momentum, but the average is around 7 market days for my hold time. Here are some quick bullet points on why I like this stock for this week:
-This sector (food and beverage) as a whole looks coiled and ready to go -The weekly chart on COT is also looking strong in an upward trend and it is pulled back to the moving average. -The price is beginning to move higher out of a squeeze which can make for some explosive moves higher
We believe in trading with the overall trend and the sector strength at our backs. This stock is a perfect example of a high probability setup that we are looking for! Lets see what happens this week!
Trade active
⋅
Good first day in this trade. We will continue to ride this upward momentum and hope for continuation higher. This is setting up as a nice high probability setup for movement higher. With this market it seems like everything is a high probability setup!
Remember that anything can happen no matter how good the setup looks to your system. We will continue to trade what we see and as of right now, our system is telling us higher!
Comment
⋅
This trade is actually very similar to our trade in PHM. Even though this had a small down day we still show some momentum to the upside. We will continue to be patient and hopefully we can catch a pop higher. Tomorrow will be an interesting day in this trade as well!
Best of luck!
Comment
⋅
This is not the type of action we were expecting in this trade to say the least! However, we will not shy away from possible losers when we have them (that's part of the game). Right now this is now on the border of giving us a sell signal if it crosses the moving average with volume at this point. Right now you can see that the price closed right on that moving average so tomorrow will be make or break it day for this trade!
We will update tomorrow!
Comment
⋅
This is playing out to prove why you need to have patience within your trading system. When a lot of people might have sold this trade, we hung on because we still did not receive sell signals and today we got a great bounce higher that is putting us in the green on this trade with the possibility for a great move higher.
Will update after the market closes on this trade of the week!
Comment
⋅
Patience is the key sometimes. Now we went from possibly selling our position in this stock, to now looking like we might catch a strong move higher as we hoped for when entering this trade. We will see what tomorrow brings for this position!
Best Of Luck!
Comment
⋅
Our Trade Idea of The Week had another green day today. It was a small day, but again we will remain patient as the weekly chart is coiled up and looks strong at this point. We still are in our whole position here going into next week. New trade Idea of the week for next week will be coming out soon!
Hey bdouth49. I just ran my first screener yesterday. And out of the 20 stocks I chose there were several (16 out of 20) that had a green day and look like good setups including COT. The others that look promising with similar set-ups are SQ, CB, and MMC. What do you think about those?
StrengthTrading
⋅
@mrshy2u, Hey there, I have looked at all of those 3 stocks as well. All three are good setups for me, but here are my thoughts on each:
SQ - This has really already fired after today and i like it to continue higher and possibly to new highs. If you look at the daily chart and use a 21 day EMA (which is what I use) it makes one of my favorite moves in which the price moves below the EMA, then above the EMA, then comes back to test the EMA and bounces off of it.
CB - Is another good setup as a squeeze looks to be firing to the upside right now. It's also in one of my favorite sectors right now with insurance!
MMC - Is in that same sector as CB (Insurance). I really like this setup as well. It is in a squeeze currently and could fire out of it if it moves higher tomorrow.
I like to trade setups similar to these 3 and also look at trend strengths on multiple timeframes as well as sector strengths. I'm not in any of these right now but they look pretty promising!
i hope this helps!
mrshy2u
⋅
@bdouth49, that is really helpful. Glad to know that I am on the right track! Thanks so much!
mrshy2u
⋅
@bdouth49 hey, one final question. Here you placed a stop loss at 16.23. Did you do that so that you could have a little wiggle room away from those earlier 16.30 lows (and thus would get stopped out too soon at 16.30)?
mrshy2u
⋅
@bdouth49, how about that CB out of the gate today?! Wooohooo! 150 CALL shot up 1.38 in minutes.
@bdouth49, you called it! the sector is strong. TRV!!!!
StrengthTrading
⋅
@mrshy2u, You're catching a nice one in that CB. Good work! Now work on managing that the trade to some gains.
mrshy2u
⋅
@StrengthTrading, Your patience and discipline with this COT trade is teaching me a lot. I think that I have learned more from following your posts over the past week than I have in two years of studying.
StrengthTrading
⋅
@mrshy2u, I'm glad I could help in some way. This could very well turn out to be a losing trade but we will play it out through our system until we see sell signals. We try not to react based on emotions as much as we can. Tomorrow will most likely tell us if this will be a successful trade or if we will have to sell it. Just remember that a lot of people are not patient enough when they get into a trade and they get out too early only to see their stock do exactly what they envisioned it doing. I'm not saying that will happen here but I have seen it many times before!