Not All Trades Are Equal…

Hey Market Pilot,

In times like these, when the market is all over the place and heavily based on the current headlines, not all trades are worth the risk. In fact, most trades are probably not worth it until either a very clear setup is present, or a better direction is established. 

Here are a few examples (pictured below) of what keeps me on guard about getting into some trades despite the possible setup. And I say possible because as you will see, some of them just oscillate along the bottom. Others actually have solid moves, but in this environment, it can be difficult to know which ones will work and which will not.

Here is Stratasys (SSYS, pictured above). There was an initial move that setup fairly well on the hourly chart with the Moxie Indicator™ price trigger (green arrows). But the daily was not ready, and therefore you needed to know the context of the trade and exit on the way up since price was likely to pull back on the daily.

Futu Holdings (FUTU, pictured above) is an example of a stock that has stopped going down, but also hasn’t gotten any traction to the upside. How do you know that a stock is only going to chop? You don’t.

Some Bitcoin miners are double bottoming. Here is HIVE Blockchain Technologies (HIVE, pitured above) which looks constructive with the double bottom and the Moxie Indicator™ “trampoline move” on the hourly. The setup is there, but will it actually be fruitful? We won’t know until it happens, so you will need to decide if you want to take the chance or not.

Bloom Energy (BE, pictured above) has had a large move from its lows. Probably because it’s alternative energy-related and that might be of interest with all the oil risk with the Russia conflict. If you could handle the pullback, it has been worth it, but how do you make sure the pullback doesn’t turn into a failed long? You don’t… until it does.

This is my longwinded way of telling you that though there are opportunities to be had, the market is still a dangerous place to be trading right now. Check your setups (twice) and make sure you adjust your risk accordingly!

Your Profit Pilot, TG


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