The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered.
ROVI triggered, ROVI & JEF stops tightened, SRS & PWRD added
Open Position Notes:
JEF tested the downside today with some early weakness, but the stock stabilized and finished higher by a few cents. This is still a pattern I like, but today’s relative strength to the S&P 500 is grounds for tightening my stop a bit, which I’ve done tonight. I’ll be watching for some additional selling to kick in soon now that the bear flag has confirmed.
ROVI triggered a short sale today as it undercut support, and the next stop for this one could easily be the unfilled gap from early August. With earnings coming out soon, I’ve tightened my stop tonight for this trade just to reduce risk while waiting for it to head lower. Nice start so far.
Closed Positions:
No closed positions.
Hey Jeff,
Regarding SRS, how did you determine the stop price? Seems awfully close to the trigger price.
Thanks,
Tom
Hey Tom!
With SRS, here’s my thinking… It’s a leveraged ETF, so it moves quickly on a percentage basis and that means if I give it a wide stop, I could get burned more than I’m willing to accept. A logical stop on the daily chart is probably back down to the $9 area, which is more than 10% from a $10.10 trigger. Also, I expect if this one is going to go, it’ll likely do it quickly and with some conviction.
So… what I did in order to still grab the trade if it goes and yet keep my stop at an acceptable distance is to flip over to today’s intraday chart and take note of the afternoon support where the last dip found some support. That was the $9.89 level, so I took $9.85 just beneath that as the stop for this swing trade. That may not be the most conventional approach, but for a trade I’m expecting to either go & run or not trigger, I felt it was appropriate for this situation.
Hope this helps and makes sense. If I can clarify better just let me know and I’ll be glad to!
Jeff
nice call on SRS!!! Sweeeeeet!
Jeff, I am adjusting my stop to a bit below the trigger of 10.10. I didn’t get in on the breakout, 10.06 here.
Not a bad plan at all Jim. My levels don’t have to be your levels…just use them as a starting point and adjust as needed to suit your needs. Good work!
Jeff
And btw, my timeframe may not align the same as yours either, which is just fine. By the same token, if some plays you like for quick pops, then book that profit and/or keep moving your stop aggressively.
I often think that goes without saying, but no harm in posting it as a reminder.
Jeff
Yep, I am constantly expanding and contracting chart time frames… Good looking out for us all though! Jim