Trades of the Week: Jan 29 – Feb two, 2018
So this was pretty an exciting week. It began out as death by a thousand cuts for me. Properly, it wasn’t pretty that undesirable, just a tiny choppy. But Friday was my finest day of 2018 thanks to my willingness to go quick.
I was holding PETS from final week. That rolled more than and stopped me out for a complete 1R loss on Wednesday. I also attempted extended trades in DLB, PRGS and MSCC… all of which ended up involving a 1R loss and break-even. I got quite aggressive with my trailing stops on Wednesday for the reason that it was feeling Incorrect to be extended.
A single extended setup that worked for me this week was AMTD. I liked its action on the Friday, the 26th — it created a (surprise) Calm Soon after Storm as nicely as a 1,two,three Pullback. I sold it yesterday close to the higher of Jan 23rd, which was my initial target. In a stronger marketplace I would have just moved my cease up a bit to lock in a tiny profit but offered how the marketplace was acting I decided to take the money and run. The 1.7R achieve helped to offset some of the losses from the trades listed above.
Time for Some Discretionary Trades…
I’d been feeling nervous about the marketplace all this year. I *seriously* wanted to be quick but I wasn’t gonna attempt as well challenging to fight the tape. But I’d been maintaining some prime shorting candidates on my watchlists just in case items began to turn. So right here are some trades which turned my week from red to green (black?).
I’ve described XNET ahead of. It is 1 of my favored Bitcoin / Cryptocurrency plays. Or possibly I ought to say anti-plays, given that all I’ve ever accomplished is quick it. Note the break of and failed retest of the 50-day moving typical on the everyday chart. It also had a good set of bearish alerts final Friday: Non-ADX 1,two,three,four Bearish, Shooting Star Candlestick and 50 DMA Resistance.
The 50 DMA failure combined with the attractive slide in Bitcoin this week created me go back to this nicely. I shorted it just following 3pm on the 31st. Here’s the 30 minute chart:
It was stubborn for a couple of hours, going into Thursday morning but it subsequently fell nicely. I covered in early afternoon Friday for about a 1.5R achieve.
A further 1 of my go-to Bitcoin (anti) proxies is LFIN. I’ve in fact traded this 1 each extended and quick in the previous. I want I’d entered this on on Wednesday in order to capture the gap down on Thursday. I attempted to quick in pre-marketplace Thursday but I had no luck receiving filled. So I waited till shortly following noon and sold it at $37. I covered this the similar time I covered XNET for a further 2R achieve.
When I was feeling seriously bearish late Thursday, I decided to purchase some VXX, which is a bet that the VIX will rise — which means a marketplace selloff will raise worry levels. VXX and XIV are permanent mmebers of 1 of my watchlists. So I am constantly seeing their charts and signals. I knew from my watchlist that VXX was heating up and when I checked it yesterday I saw that it was bouncing off its 50-day moving typical. I wanted some much more quick exposure, so I purchased some. It rallied 13.five% nowadays and I sold it for about a 1.9R achieve. (A single of the challenges with VXX is it really is so volatile that it really is challenging to get a tight cease and, thereby, get a huge position.)
The final 1 was AAPL. A further 1 which I constantly hold an eye on. It reported earnings final evening and, of course, was “In Play” this morning. I saw that it got a couple of analyst downgrades this morning but was nonetheless hanging challenging in the pre-marketplace. I figured it woudn’t be capable to make it back above that old assistance/resistance line & shorted it at $167.95 at eight:22 this morning. I am nonetheless holding it with a 1.4R achieve.
I will be maintaining a close eye on AAPL Monday to see how it handles the 200-day moving typical, which is just a couple of points away.
So what was hunting like a quite blah week turned out to be quite excellent thanks to my willingness to modify my bias from extended to quick and take some swings. Although I attempt to stick with trading the setups I uncover by way of the internet site, in some cases I just have to have to get in touch with some audibles, and trade primarily based off of what the marketplace is telling me to do by way of all the charts I track. That paid off this week.