Stock futures appear to be in the red this morning as more earnings reports are coming out and attention turns to the next FED meeting.
The only stock left in the Paper Trade Swing Trading Portfolio is EW. I made a “Trading Guidelines” mistake and lost track of EW earnings report which came out Wednesday.
The rule is to exit positions prior to earnings and ex-dividends.
Thursday morning the stock tanked, and I had no stop limits on the downside, just sell limit on the upside. Luckily, the price recovered as it rode the market wave up.
Another one of my principles is to not place orders during the first 30 minutes after market open.
This is when we have an abundance of orders in the system and some emotional trading caused by pre-market news.
I’ve included the minute chart for EW from yesterday with the first 30 minutes of trading highlighted.
In this case, the price action was able to stabilize after the first 30 minutes and close above the cost basis. Whew! Price is now above the 9-day SAM with a resistance level of 89.32 with a slight crossover of the Stochastic.
This position is up $0.18 even after a volatile day of trading yesterday.
As it is Friday and the last trading day of April, I’m not planning to add any additional positions today. If I find something interesting, I’ll let you know.
Have a great day!
This information is provided for educational purposes only and is not a recommendation to buy or sell a stock.
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