WFAD #19
$GPS & $HZNP
These trading ideas were generated by #crowd DreamTeam Investments platform based on principles of #Prediction_Markets. Also, they were approved by Dorofeev Mikhail, head of the analytical department at DTI, PhD, associated professor of finance and prices department in Plekhanov Russian University of Economics.
$GPS
The Gap Inc. ($GPS)
Services | Apparel Stores | USA
The first trading idea is buying stocks of The Gap Inc. ($GPS) (see pic. 1).
The result is shown on the pic. 2
It was one of the luckiest trades of this month. To tell the truth, it’s quite difficult to work with trend-following system, when indexes move in narrow trade range and market volatility is extremely low.
This case is a windfall. One day after, the deal price of $GPS suddenly skyrocketed right from the premarket. At 16:30, when the US markets opened, trading of $GPS started with a breakaway gap up and its price rose by more than 20% after that.
Profit from this recommendation = appr. +20.47% in 7 days (+1 052.7% annually).
The lesson is =>
- Interesting ideas could be found via technical analysis methodology even if the market is in phase of horizontal trend and volatility is low (SnP 500 is moving in range of 75 points for about 3 months).
$HZNP
Horizon Pharma plc. ($HZNP)
Healthcare | Drugs — Generic | Ireland
The second recommendation is long of Horizon Pharma plc ($HZNP) stocks. You can see trading plan on pic. 3.
The result is shown on the pic 4.
We found a good buying opportunity, when $HZNP broke local downtrend line (the blue one on the pic. 4). In the beginning, this idea was a mixture of trading according to initial plan with very good R/R ratio. But unfortunately we made a try to catch a corrective movement and in spite the trade was at the break-even in the end of the first trading day, the next day brought us a surprise. Market opened in a strong bearish manner with breakaway gap down and break-even position generated a loss.
Loss from this recommendation = appr. -4.06% in 2 days (-730.8% annually).
The lesson is =>
Avoid counter trend trading of stocks, if you keep the position overnight.
