As forecast the market and volatility has been coiling all week and likely into next week too with the election the week after that, I exited 2 pairs trades and put on 1 new pairs trade, long $VGT vs short $FDN. Highly likely I won't enter any new trades next week and flatten the portfolio before next weekend.
Long -term investment idea for ETF AMEX:VGT on potential 2nd COVID-19 market drop.
VGT 41% profit / Long trade 194.23 -> 273.52 / TrailStop 39.65 of price amount
Profit: 41%, Risk: 20.5%, Risk ratio = 1/2
Allocation: 15% of the portfolio
All equities from our ideas was fundamentally checked and have good ratios (P/E, Debt/Equity, Sales past 5Y, Profit Margin)...
VGT has been in a nice uptrend, but its growth has been faltering, potentially meaning that it will have a quick correction at its all time high of $273. It may drop as far as $245, which would be a good buy for long term positioning.
- Yesterday's close ended with a bearish engulfing candle on a major resistance (on volume)
- I would be cautious to add any long positions at this level, expecting a pull back
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.