Swing Trade Idea in PHM!

We really like to keep our charts simple and momentum in price action is the most important thing to us. One of my favorite setups is a squeeze because it allows me to get into a stock or option before the large move has been made. This is obviously really nice when you trade with options because of the greeks and implied volatility starts working for you. Here is some brief bullet points on why we like this setup:

- This stock has consolidated back to the 21 day moving average after a very bullish move.

- The price is in a squeeze and is starting to fire out of that squeeze to the upside

- There was good volume on the move higher today

My strategy is based on swing trading stocks and options. My hold time averages around 8 days, but can go as long as 3 months depending on momentum and price action. Please make sure to have an exit strategy in place at all times no matter how good a setup looks...anything can happen!

Comment:

Not the best first day in this trade, but we are still in this move as sometimes you have to be patient. You can see that even on a down day today that there was still some momentum to the upside. It will be interesting to see what tomorrow brings in this one!

Best of luck to All!

Comment:

This trade is also not producing the best action, but we are still being patient in this move. We got into this trade early trying to catch all of a large pop to the upside. That pop higher has yet to show itself in this trade but we hope to see that take place in the next couple of days.

We will update this trade tomorrow!

Trade closed manually:

Just wanted to update this trade. We decided to exit this at $34.41. Our momentum indicator showed some strong movement downward and the price cleared the bottom of yesterday's candle so we decided to exit with a small loss, which looks like was a good move because it has failed even harder! Sometimes it is just important to minimize losses than always expecting to catch wins.

Best of luck to all!