News / Uncategorized
[Platinum Watchlist] Updates on 2 stocks!
[Platinum Watchlist] Updates on 2 stocks!
August 21, 2023
Good morning.
Stock futures are down again this morning as the market may be coming to the realization that the FED will most likely have to continue to raise interest rates this year. Several FED speakers have backed this up.
Downward trending markets are necessary for swing traders with regard to providing us with potential set-up.
PEP closed down yesterday 0.28% just above the upward trending 9-day SMA (current support) after wicking up to the 50-day SMA which has been resistance. The SS has showed a slight roll-over. Price action trend is down which is bearish.
ABBV gapped down to close just above the 9 & 200 day SMA which is the last line of support after wicking up above the 20. The RSI is below 50 and we have a slight roll-over of the SS. Stops should be set to reduce the potential loss.
Here is the takeaway from this week: Risk tolerance has a lot to do with swing trading. Those who are risk adverse (like me) would not have entered into these positions this week because of the CPI and PPI reports coming out even though the guideline parameters are met.
I stated this on Monday. Those with moderate risk levels would have entered the position on Monday and set stops on Tuesday above cost basis and got stopped out with a slight profit on Tuesday.
Traders with high risk tolerance would still be in the trade today, waiting for a full candle close below the 9-day SMA in the event price action finds hard support at the 9-day and reverts to an upward trend. Higher level of risk – Higher level of reward/loss.
Risk tolerance is different for each individual trader. You have to understand your risk tolerance level which is why we paper trade to gain that experience and get the feel of the market. Technical analysis is a tool that help us make trading decisions. It’s up to the trader to determine how far you want to test this tool.
This information is for educational purposes only and is not a recommendation to buy or sell a security.
Share this article:
More in Uncategorized:
Hedge funds and banks typically use multiple time frames for intraday trading
Hedge funds and banks typically use multiple time frames for intraday trading, as this allows them to gain a comprehensive...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
August 30, 2024
Nvidia Earnings Call: A Record Quarter with a Twist
Nvidia’s Q2 earnings call was a mixed bag, with the company reporting a record quarter but also revealing a drop...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 29, 2024
Nvidia Earnings: A Critical Moment for Big Tech
As we approach Nvidia’s earnings report, the tech world holds its breath. This isn’t just about one company’s performance; it’s...
![Trent Grinkmeyer in front of stock market with bull background](https://bestofusinvestors.com/uploads/2023/06/trent-e1687263019450-300x300.webp)
Trent Grinkmeyer
August 28, 2024
The Sleeping Giant: Why Intel is an Undervalued Stock
As the world’s largest semiconductor company, Intel (INTC) has long been a household name in the tech industry. However, despite...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 23, 2024
The Trillion Dollar Addiction...
The Trillion Dollar Addiction That Amazon, Google, Meta and Microsoft Will Be Selling Next Year As I discussed in my...
![Kerry Grinkmeyer in a suit standing in front of a stock chart with a bull on it](https://bestofusinvestors.com/uploads/2023/07/kerry-300x300.webp)
Kerry Grinkmeyer
August 19, 2024
What is an AI Agent? What Can It Do For You? Where Can You Get One?
As I discussed with my tribe during our recent stock talk, I’m excited to share with you the concept of...
[Platinum Watchlist] Updates on 2 stocks!
August 18, 2024