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. Click post title to view print-friendly link.
CBL triggered, PCL & CBL stops raised, GGC & CAG added
Open Position Notes:
TMK continued higher today, participating in the market strength while making a new high in the process. That’s encouraging to see, but volume was very light along with today’s advance, which is worth noting. This stock has been able to rally previously on light volume, but I’ll be watching it closely for any need to make an adjustment in my current plan.
PCL made a new high today on heavy volume, but the stock finished well off its best levels of the day. This hints at some hesitation on the breakout, but for now it’s holding above prior resistance, so I’ll give it another day or two to get back on the move. I’ve tightened my stop tonight just in case this one happens to fail.
CBL triggered a buy today as it broke out from its large bull pennant pattern. Price surged higher and ended the day near highs, which is just what I like to see on a breakout day. Volume increased, but could have been stronger. All in all, this is a nice initial move, so I’ll be watching for follow through toward my target tomorrow. I’ve also adjusted my stop to just below intraday support from today’s session.
Closed Positions:
No closed positions.
Do you use actual stops or just monitor it?
Hi Gary,
Welcome to the Hideout!
I use actual stops, that way if I happen to step away from the PC I know my trade is taken care of. Others here may do it differently, and if so, feel free to weigh in. As for me though, I like the freedom of having a stop in place just in case the move is swift or happens when I am not watching.
Does it increase the chances that a market maker will take it out?
It should not increase the chances of being taken out, although many will claim it does. The fact is that a stop order is not displayed in the order book, so the location of the stop order is of greater importance than leaving a stop loss order in place.
Thanks Jeff. I did put in the stop order.
What does “so the location of the stop order is of greater importance than leaving a stop loss order in place.” mean?
What I mean is that it’s not the actual stop order being generated that will raise the odds of getting taken out, but the price level you choose for your stop. Market makers understand that at obvious levels they can nudge prices through and trigger some stops. So my point was based on the price level being an important decision, not whether you place your order ahead of time. Hope this helps to clarify!