We have four new activations over the past week that have moved from pending to active setups.
Regarding entry prices for activations, we wanted to be clear that there is no one entry price for each trade. The activation of trades is based upon price breaking above or below the relevant trendline, but members can time their entry in accordance with their risk tolerance.
This could mean entering into the position right before the trendline breaks, intraday when price breaks the trendline, or at the close of the trading day when a trendline breaks to confirm price holds the breakout or breakdown.
As we mentioned in our prior note, stop losses depicted in Pending Setups reports are suggested levels for when pending setups become active, and could change depending on price action. This means a stop loss could be raised if price were to move higher before ultimately breaking below the trendline that makes the setup active, as long as the divergence is still in place. This is what transpired with the most recent NFLX short trade.
As always, we encourage you to provide feedback in the comments section below the article.
New Activations:
- Short NFLX
- Long MCHI
- Long MRNA
- Short XLY
Previous Activations
- Long TLT
- Long Palladium
-The break below the upward trendline on July 20 activated the short trade as NFLX had lackluster earnings results.
-Price is now within a few percentage points of hitting target 1 – any additional Q2 earnings that miss consensus in the Communication Services sector could continue to weigh on the stock as sentiment turns sour.
-Traders could look to book partial profits and lower the stop loss level if price hits target 1, given this would be relatively strong support at the bottom of the price channel.
-Recent stimulus measures vowed by the Chinese government helped MCHI breakout above the trendline and activate the long trade on July 26.
-This is one of our higher conviction trades, with price breaking above the downwards trendline and converging 200/100-DMAs at the same time.
-The long trade was activated after a break and close above the trendline on July 21.
-Price has reverted back below the trendline and 50-DMA for now, but the July 26 candle did show some promise as the stock rallied 1.5% off the intraday lows.
-XLY broke below the trendline which activated the short trade on July 20.
-Disappointing results from the top weighted stock in the sector, TSLA, was the main catalyst for XLY downside.
-A deterioration in personal income data reported this Friday (July 28) could further negatively impact the Consumer Discretionary sector.
-A move above both the 50/200-DMA and downwards trendline on a closing basis on July 19 has activated the TLT long trade.
-TLT fell back below the trendline and moving averages however, and is seeing more weakness as jobless claims data were below market expectations while Q2 GDP was stronger than expected today (July 27).
-Palladium broke above its downward trendline on July 18, activating the trade on the long side.
-Price has reversed lower in recent sessions, but price is still holding the trendline for now.
-A stronger dollar and higher yields after constructive economic data could pressure metals prices near term.
Absolutely LOVE this.
Dare to dream of the optional option option.
Time frame for how long you expect to be in the trade would help
Us choose expiration date for this of us trading options on swing recommendations.
I’d like to enter the Palladium long trade but in the US market the only thing I could find that tracks the spot price of Palladium is an ETF (PALL) currently trading at approx. US$114.63 as of July 28. The 3 year low is $111 made on July 10. I’m thinking of scaling in below $114. Today’s low was $113.50
Could you possibly look at the chart and recommend an entry price? I know you don’t provide exact entry prices but any suggestions would be helpful. TY GOT team
Also, any thoughts on Platinum?
Where can I find your price of entry when a trade moves from pending to active? I see the analysis and stop losses along with PT’s but I don’t see entry prices. TY GOT team !