PAPER TRADE ONLY
Sell – TDY $415.81
Most traders would have passed on this position as stated this morning. Price action fell to a level where the risk reward ratio improved, however the oscillators were weak. As we have been discussing for weeks, range bound trading trends merit the use of utilizing support and resistance levels for stop limits. Stop limit was placed at the support level and triggered as market conditions worsened for the major markets. This provided the portfolio with a 0.19% loss or $79.00.
Sell BRKB – $325.44.
BRKB sold off with the general market causing price action to drop below the 9 and 20-day SMA. The MACD and Stochastic moved below the signal lines and the RSI is now below the 50 – level. On large priced stocks such as BRKB, I set my loss stop limit at 1.5% of the cost basis which is $325.44 which was hit during today’s market sell-off. This gave a 1.5% loss to the portfolio or $495.00.
Market conditions can change quickly which is why we tighten up on the stop limits to assure we control the losses. Check out the blog education channel on the Platinum Channel for more on Market Conditions. and Range Bound Trading. I’ll put these charts on the watchlist channel. The other positions in the portfolio have yet to hit their stop limits as of this point.
This information is for educational purposes and not a recommendation to buy or sell a stock.
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