WFAD #39
$RGC, $NUGT
$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).
The result is shown on the pic 2.
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 =>
- Timing is very important for good entry.
- 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).
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.
