Upward Price Movement in PCLN

$PCLN has shown strength in the past few trading days, and is looking to trade higher.

Let’s take a look at the daily chart below:

PCLN Daily - 2017-10-05

The trend of this stock is clearly up. We’ve just successfully recaptured the 100MA on strength. We’re looking for the trend to continue.

Stop will be placed below the 100MA, with enough buffer for potential noise.

Time to Go SHOPping

$SHOP has taken a hit, after Andrew Left threw a right at the stock.

Whether or not this short alert will weigh down on the stock for a while, no one knows for certain.

What we do know, as trend traders, is that the stock is now at a great location for a right in, right out trade.

Let’s take a look at the daily chart of $SHOP below:

SHOP Daily - 2017-10-04

Specifically, we have the 100MA right below us on this strong trending stock. For trend traders, this is a great location to get long.

We’ll be looking to initiate a long position (watch for our tweet) when we get closer to the 100MA, with a stop just below it.

An Opportunity in MGM

$MGM has taken a hit, due to the recent massacre in Mandalay Bay in Las Vegas.

Whether or not this news will weigh down on the stock for a while, no one knows for certain.

What we do know, as trend traders, is that the stock is now at a great location for a right in, right out trade.

Let’s take a look at the daily chart of $MGM below:

MGM Daily - 2017-10-02

Specifically, we have the 200MA right below us. For trend traders, this is a great location to get long.

We’ll be looking to initiate a long position (watch for our tweet) when we get closer to the 200MA, with a stop just below it.

Semis Sector Update

The semiconductor sector $SMH has trended like a beast for over a year now, and in all time frames, the trend continues.

Let’s take a look at the daily chart of $SMH below:

SMH Daily - 2017-10-01

Any pullback here is a buy in our books. Consider getting long individual stocks in this sector, such as $AMAT or $MU.

Disclaimer: our investment team is currently long $MU as of time of writing.

Weekend Update

The market continues to make new highs. Let’s take a look at the trend for all of the major market indices, starting with the $SPY.

SPY Daily - 2017-09-30

$SPY has continued to soar higher, maintaining its position well above all major moving averages. The trend here is clearly up.

The same story is true for the Dow Jones:

DIA Daily - 2017-09-30

Here is the Nasdaq:

QQQ Daily - 2017-09-30

One can consider joining in on the trend here via $QLD - it’s cheaper.

Finally, we have the star of the show - $IWM:

IWM Daily - 2017-09-30

$IWM has a huge breakout and continues to climb higher. One can certainly go long this ETF, or can consider getting long specific small cap stocks, such as $WTW.

Taking a look outside of the US and at China, here’s $FXI, an ETF tracking the Chinese Market

FXI Daily - 2017-09-30

Trend holds as we bounce off of the 50MA. The overall trend here is bullish as well. One can look towards specific stocks in China to get long, such as $BZUN.

Recap

Trend of Market: UP
Our Bias: Bullish

Our investment team will continue to maintain our bullish stance on the market until circumstances change. For now, we hold all positions in our portfolio, and will continue to do so until we get a sell signal.

Have a great weekend!

Exposure to China - BZUN

As the entire world participates in the bull market, one can look towards specific stocks, particularly Chinese stocks, to get long.

One particular stock that showed up on our radar is $BZUN. Please observe the chart below.

BZUN Daily - 2017-09-30

Like many other stocks, $BZUN has come back down to tag the 50MA. As trend traders, we love when opportunities such as this one present themselves. This is a great place to get long some shares to participate in the trend.

Stop can be placed just below the 50MA, at around $28.16.

More conservative traders can enter in with half position size at current prices, and another half down at the 100MA (27.78), with the stop below the 100MA, at around $23.20.

Disclaimer: our investment team is currently long $BZUN.

Watching Weight Watchers - WTW

As small caps make new highs, one can look towards individual stocks in the Russell 2000 to get long.

One of these is $WTW. Please observe the daily chart below.

WTW Daily - 2017-09-30

$WTW has come back down to tag the 50MA. This is actually quite a great location to join the trend. You know right away whether or not you’ll be right. Consider placing the stop loss just below the 50MA, at about $40.36. More aggressive traders can size up bigger and use a tighter stop loss at $41.77.

Disclaimer: our investment team is currently long $WTW.

Jumping in on ILMN

While the biotech sector picks up momentum, one can look for opportunities in specific stocks to get long.

One prime example of this is $ILMN. Please observe the chart below.

ILMN Daily - 2017-09-28

$ILMN has come back down to tag the 50MA. One can consider getting long half a piece here, first. Should the stock come down lower to tag the 100MA, the other half can be placed.

Stop loss should be placed just below the 100MA, at around $178.51. This allows for some buffer room below the major moving average to account for potential noise.

More aggressive traders can simply go in with full size, with a stop below the 50MA, around $188.18.

A Look at BBRY

$BBRY has picked up a lot of chatter recently, so let’s take a look at the chart of the stock on the daily timeframe.

BBRY Daily - 2017-09-28

Towards the beginning of the year, $BBRY managed to pierce above the 200MA and trend upwards. In August, prices came back down to tag the 200MA before bouncing higher. While we did not get long this stock at that time, the stock is still a decent candidate to get long right now, with a stop just below the 200MA.

More aggressive traders can place the stop below the 100MA - this allows them to go in with a larger position size, albeit a higher possibility of their getting stopped out should prices come back down.

Should one get long here with a conservative position size, using the 200MA as a reference, the stop would be placed at $8.01.

BLUE - Breakout to Fresh Highs

Hello traders,

As $BLUE breaks out to new highs, one may consider if it’s too late to go long. Let’s take a look at the daily chart of $BLUE below.

BLUE Daily - 2017-09-28

$BLUE has consistently held the 200MA and 100MA since last year, and we’re now seeing the stock trend above the 20MA. This is a signal of a strong upwards trend. While that can change at any moment, current signals point to getting long.

For trend traders, what matters isn’t about how much money to make. Rather, what matters is being in the trend with the right position size, according to your personal risk tolerance, in order to stay in the trend.

Conservative traders would use the 200MA as a reference point when considering where to place their stop as part of the trend trade, while more aggressive traders would use the 20MA, as placing a closer stop allows them to have a bigger position size (albeit getting stopped out earlier should the stock fall down, but maintain trend above the 200MA). Again, this choice is up to the investor, and is one we highly recommend each individual consider before taking on a position in order to be able to hold for the duration of the trend.

Always consider the amount of risk you’re willing to take in the position, before you think about potential profits. As long as you manage risk properly, you’ll be able to stay with the trend.

Disclaimer: we are currently long $BLUE, with a stop below the 200MA at $85.51 as of the time of writing.