Good morning and welcome to the first day of trading in March!
For February, the Dow declined 4.19% and turned negative for the year, while the S&P 500 and Nasdaq Composite dropped 2.61% and 1.11%, respectively.
Even with the down trending markets, we were able to find profitable paper trades utilizing my guidelines. Now we did have a few losers, but utilizing solid risk management and stop loss orders minimized the downside potential.
CPB closed down yesterday by 1.13% just above the 9-day SMA which is the support level. The MACD is till trading above its signal line and the RSI is weakening but above the 50 level. There is a rollover of the stochastic. The chart shows a converging 9-day and 50-day SMA and at some point, something will have to give one way or the other. Price action needs to find the strength to get above the 50 while continuing to find support at the 9. If not, we will see an exit from this position.
ALGT closed up yesterday to continue its trend up using the ascending 9-day SMA for support. The MACD has yet to give us a positive crossover of the signal line at this point which has kept us out of this paper trade. We will continue to watch this stock. ‘
A new stock to watch is APD which had a full candle close above its 9-day SMA yesterday finding resistance at the 20. The MACD has just barely crossed the signal line and the RSI is below 50, so I’d like to see more strength in those oscillators prior to entering a paper trade position.
Having a well-defined trading plan and utilizing solid risk management techniques is crucial for successful swing trading. Without a plan, swing trading can become haphazard and prone to emotional decision-making, which can lead to significant losses. A trading plan provides a clear framework for identifying opportunities, setting entry and exit points, and managing risk.
Have a great day! This information is for educational purposes and is not a recommendation to buy or sell a stock.
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