WFAD #39

$RGC, $NUGT


Read the previous WFAD#38.

$RGC

Regal Entertainment Group, $RGC [NYSE]
Services | Movie Production, Theaters | USA

First idea was buy stocks of Regal Entertainment Group ($RGC). We made this recommendation in our previous WFAD issue #38 (see pic. 1).

Pic. 1. $RGC. Regal Entertainment Group (Forecast)

The result is shown on the pic 2.

Pic. 2. $RGC. Regal Entertainment Group Daily. (Results)

It’s rather interesting case, because we made a concrete recommendation on the spot right in our previous WFAD issue and it happened, that timing of that recommendation was good. H&S bottom worked very well. 
We didn’t take profit at our projected target level, because price of $RGC was rising quiet rapidly the next day after forecast. We decided to keep our stop-loss very close to the market. Market took our stop at 4-th day after we went long.

Profit from this recommendation = +2.45% in 4 days (+223.56% annually)

The lesson is =>

  1. Timing is very important for good entry.
  2. If your plan is done, but market do not show clear bearish models, you have to decide whether to take your profit, or manage stop-loss more attentively. Usually the both strategies give approximately the same results.

$NUGT

Direxion Daily Gold Miners Bull 3X ETF, $NUGT [NYSE]

Second trading idea was buying Direxion Daily Gold Miners Bull 3X ETF ($NUGT) (see pic. 3).

Pic. 3. $NUGT. Direxion Daily Gold Miners Bull 3X ETF. Daily. (Forecast)
Pic. 4. $NUGT. Direxion Daily Gold Miners Bull 3X ETF. Daily. (Results)

The idea was based on usage of technics of adding to position in the trendy movement. We have a strong uptrend. $NUGT retraced to 9.73 support level and formed bullish engulfing reversal. There was a possibility to set very short stop-loss and at the same time $NUGT still had some upside potential. 
When $NUGT made a new high (broke 11.6) it was possible to draw a simple trend line to manage our stop-loss. We moved it in break-even at that moment. A week later this trend line was broken with daily close below it. We moved our stop higher under local minimum (11.71). 21–02–2017 market took our stop-loss. The most difficult thing in this case was to move stop-loss not too fast and give this trade breathing.

Profit from this recommendation = +16.28% in 22 days (+266.4% annually)

The lesson is =>
1. Be patient and try to keep your trade active, until market shows, that it’s ready to reverse.


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