WFAD #36


Read the previous WFAD#35.


TFS Financial Corp., $TFSL [NASD]
Financial | Regional — Midwest Banks | USA

The first trading idea was trading stocks of TFS Financial Corp Financial ($TFSL). We bought them (see pic. 1) and then we tried to sell these shares (see pic. 2).

Pic. 1. $TFSL TFS Financial Corp Financial. 60 min. (Forecast) | Pic. 2. $TFSL TFS Financial Corp Financial. Daily+60 min. (Forecast)

The result is shown on the pic. 3

Pic. 3. $TFSL TFS Financial Corp Financial. Daily. (Results)

The fist trading setup was bullish. There was an uptrend. 
We bought the breakout of the local high. (pic. 3 — green “buy”). 
Our target was at least breaking nearest local top @19.42. 
The initial target was reached, but we decided to hold the position and moved our stop higher — to 18.49. After that market showed some weakness. Price failed to make a new high and started to build a double top reversal pattern. 
It is a potential bearish signal, so we changed our stop for a reversal one (doubled the amount of contracts) and got ready to sell in the case, if price breaks 18.49 level down. Price did break 18.49. Our long position was reversed and we set a protective stop-loss over the local high @19.2. 
The next day was very disappointing, because price spiked up and our stop was taken by the market.

Actually, there were at least two mistakes or weak points in our trading tactics and strategy:

  1. Initial target was reached and the long idea was fully exhausted. We made a try to hold long position without a daily plan.
  2. When we sold double top, our protective stop was placed rather low (to minimize risks). Strictly saying, it should have been placed @19.39 (over the second top).

In any case, for our luck, this was a profitable trade.

Profit from this recommendation = appr. +0.61% in 73 days (+3% annually)

The lesson is =>

  1. Do not hold a position at long-term principles, if your trading plan was made for a short-term case.
  2. Place stop-loss for a double top sell setup over the 2-nd top.


Activision Blizzard, Inc., $ATVI [NASD]
Technology | Multimedia & Graphics Software | USA

The second recommendation was buying stocks of Activision Blizzard, Inc. Technology ($ATVI). (see pic. 4).

Pic. 4. $ATVI. Activision Blizzard, Inc. Technology. Daily. (Forecast)

The result is shown on the pic 5.

Pic. 5. $ATVI. Activision Blizzard, Inc. Technology. Daily. (Results)

We bought a breakout of a continuation pattern (bullish pennant) after 2-bot. bullish reversal. Stop was placed under the local low. 
When management of Activision Blizzard, Inc. published earnings, price of $ATVI gapped up +10%. The next day we closed the trade, because our target was reached and $ATVI usually makes a significant retracement after good earnings publication (see below).

Profit from this recommendation = +14.62% in 18 days (+292.4% annually)

The lesson is =>

  1. If the market makes you a gift of extraordinary profit, — just take it. 
    At least partly.