This is as per stock criteria of the book Trade Like a Stock Market Wizard
by Mark Minervini.1. The stock price is above both the 150-day (30-week) and the 200-day (40-week) moving average price lines.
2. The 150-day MA is above the 200-day MA.
3. The 200-day MA must be trending for at least 1 month.
4. The 50-day MA must be above the 150 and 200 MA.
5. The current stock is at least 25% above its 52-week low.
6. The current stock price is within at least 25% of its 52-week high.
7. The relative strength is no less than 70 and preferably in the 90.
8. Current price is trading above the 50-day moving average as the stock is coming out of a base.
9. It has built three bases and the volume is good.
17 April 2019
- I bought my initial position the stock at 47.
- Set my Stop Loss at 45.2.
- Although I think the correct buy point must be above the short term resistance at 48.05, I bought anyway as it is confirmed that the price is breaking out from its consolidation price range.
22&23 April 2019
- A bullish candle but indecisive appeared. Three candles almost closed at the same price levels--sideways.
24 April 2019
- The price gaps up a little bit. I bought my second position at 47.9.
- Raised my Stop Loss to 47.0.
- Break even at 48.2.
- The price closes at 48.
25 April 2019
- The price went all the way up to 49.5 at the closing price. I'm very optimistic of a strong follow through the f
- I'm planning to add my exposure on the next trading day.
- The volume of buyers is still available.
26 April 2019
- Resistance at 49.55.
- Most of the trading day is a standoff price at 49.
- At the end of the trading day, massive sellers came in.
- Block sale recorded.
- I sold all my position at 48.5 and move on to the next trade.
Result:
Entry1: 47.0
Stop Loss: 45.2
Entry2: 47.9
Raised Stop Loss: 47
Sold: 48.5 at a very small profit.
Takeaways
- I'm very optimistic that the price will move up even more.
- I realize that the run was pretty high already. Price is king. So be it.
- I hope this is just a small pullback, but I saw massive selling conviction. That's why I sold it.
- Fear struck me. I don't want to turn this trade into a loss so I sold it.
- In the hindsight, if this is really just a normal pullback price action then I think I'm selling it to early and not sticking to my stop loss at 47. I already raised my stop loss at 47.0, but I didn't wait for that to come and settled on a very small profit. Well, let see in the coming days what really will happen. I will post an update to see if I made a mistake of selling it too soon. And not letting the stock kick me out by hitting my stop loss. Or at the very least sold half of the position. Anyway, let's see.
- On 26 April 2019, it was the day when ALI announced that they will offer REIT. The first of its kind in the Philippines since the law was passed in 2009. It sounds to me a piece of good news for ALI, but I don't know why there was a massive selloff on the same day. Well maybe because it is a Friday so those who bought the stock at the support level took some profit for the weekend. But there was a block sell also.
Update:
4 May 2019
- If I did not exit @ 48.5 price and stuck to my stop loss @ 45.2, I'm still invested right now and not yet knock out by ALI.
- I realize that my stop loss should have been at near support @ 46.68 rather than @ 45.2.
- It seemed that I developed a style, which I felt comfortable; not holding a stock too long. Just held a stock for a day or two after purchase and not keeping it during the weekend, especially those stocks that not yet reported the 1Q2019 report. It seemed I'm okay with this style.
- ALI's RSI direction is going down now @50, the Price Volume Trend is also going to downward trend.
- I think ALI will bounce at it support @46.68. Let's see after a couple of days.
No comments:
Post a Comment