Well, it’s been a slow start to the trading week so far. I was hoping to write more about swing trades, as I mentioned last week. But the market simply isn’t cooperating on the long side! So rather than force things I’m happy to sit tight and wait for calmer waters (or clearer skies, pick your favourite metaphor!)
In the meantime, I should also let you know I stopped out of HUBS yesterday for a full loss. As you’ll recall from the original post, here’s the original chart that tempted me into this trade:
But unfortunately, things never really got going here. It wasn’t just HUBS though. The whole market has pretty much just flopped around. And because of my poor entry, I ended up taking a full (1R) loss. As you can see below, the stock dropped yesterday and hit my stop.
Now to be fair, there isn’t a ton of technical damage. And if I was using a longer-term trend following system I’d probably still be in this one. But the goal with these trades is quick turnover of the account. So I’m taking the L rather than sticking around.
Plus, with President Trump slapping a fresh round of tariffs on Mexico this evening and futures plunging, it doesn’t look like there’ll be much opportunity just yet for my style of breakout swing trading. For starters, I’d like to see SPY pull out of this short-term downdraft…
Now I guess the silver lining is, corrections and pullbacks are a normal part of the market. They can sow the seeds for the next leg higher by reigning in extended stocks to eventually create better risk/reward setups.
But, we’re still a little ways off from that, in my humble opinion…