It’s all gone a bit quiet on the trading front I’m afraid. With having various other commitments I’m just not managing to find the time to look for potential trades and I don’t want to rush into anything as this has gotten me into trouble in the past.
My position in paragon has rallied by around 4 points today. Not what I want considering I’m on the short side. The ADX is still just above 25. If it falls below this level or if the any of the MA turn upwards then I will exit the trade as the reason for the trade will have gone away. Shanks and premier foods have both gone up a bit today. Shanks will have been open for 8 weeks on Friday. IF it fails to move into 2R by then end of the tenth week then I will exit the trade and look for other opportunities. Ten weeks is the length of time set out in the momentum divergence strategy for the trade to come good. If it fails to come good then I shall look for another trade.
Premier foods is also a momentum divergence buy, it’s only in it’s second week so this has another eight weeks to come good. Luminar is the same although it has been open for four weeks.
At the moment I am quite happy to let my existing positions play out. How I said if the ADX on paragon moves below 25 I shall exit the trade and look for something else.
I have placed one new order for tomorrow. This is Dominos Pizza. The stock is clearly up trending and has just pulled back for three days. Therefore I have set a buy order for the high of today with a stop set at the low of today. There is every chance the order will not trigger but we’ll see what happens tomorrow.
That’s all from me for today.
Until next time
“May the markets be with you”
Spread Betting Beginner