Two leading stocks fell more than 5% in the past week, a development that means traders have been eager to book profits in strength. This follows the breakdown several weeks ago of other well-known leaders such as TSLA, SCTY and several internet-related names.
Even though the weekly booked a loss on NOK and IQNT, the Portfolio Management section booked profit on both because of my strategy of initiating trades deep into the buy zone and of exiting when EV shows a negative MF.
Below are the updated stats for both methods.
The cell in blue shows the win ratio, while the cell in pink shows the return/risk ratio.
I am very comfortable with my investment strategy of being selective with my trades.
This market is very choppy, mainly because of the Fed, which tries to "talk it down" while maintaining a high level of liquidity injections.
Today's trade ideas are already close to their respective buy zone, which means that if the 20DMF is positive, I will initiate a few long trades. I held off on the long BBG trade yesterday because the EV pattern was not positive early in the day. Later on, a catastrophic server failure at our provider rendered any new trade impossible. BBG looks more interesting today. So does NOK.
I want to stress once again that entering low and keeping tight stops is very important in the current environment.
