Stock Screen and Position updates 23rd April 2021

Well what a rotten weak it has been, a draw down of nearly 10% of the account, totaling a loss of -£88.88. It looks like there has been some clear profit taking across the board, and I have been caught on the wrong side of these. After reviewing the closed positions, there are a few points that stand out.

Pullbacks have been slow and painful, leaving me holding out for hope and eventually taking out my stops. Timing on entry has been poor on a couple of trades, LSE: QQ. and LSE: VLX come to mind. I have entered impatiently on the second day of a breakout, knowing full well these can pullback for longer.

But I am still here, its hard to admit I have just crystalized 5 losses in a row, but one thing is for sure, I am still trading and risk management has kept me in the game….for now.

Onto the screens, I have started to spread these out a little bit and might start publish the findings over the week, mainly because my strategy doesn’t require me to watch each stock every second of the day, I can allow a decent amount of time for a trade to play out.

LSE: COST

LSE: COST
LSE: COST

This one came up on Monday. There are a lot of repeat patterns playing out at the minute, very wide price candles with high volume, and not many of them are easy to interpret. This one has shown a clear rejection in price. Also if you look at the average volume (the red line) since the middle of march till now, it has been very slightly decreasing. With a rising trend that doesn’t seem to be a strong sign.

I have no idea how long the uptrend could last, but I am betting this last price rejection could hold, there is a high chance I could get stopped out here as it tries to retest the 70’s

I may put an order in for a small ‘feeler’ position for now.

Order placed short @ 66 – Stop @ 70.94 – Position size £5 per point.

LSE: RWS

LSE: RWS
LSE: RWS

I actually missed the previous uptrend here, I picked it out but either didn’t put the position on or it missed its entry, which was a pity. I want to have another crack at this one now, there looks to be some rotation in the stock around the 700 level. The price has looks weak, as the volume has now increased around this this price.

Order placed short @ 695 – Stop placed @ 722.2 – Position size £1.2 per point.

LSE: SYNT

LSE: SYNT
LSE: SYNT

Similar setup to LSE: RWS prices are looking a little bit toppy, with consistant high volume coming in and the price not breaking out, suggesting this could roll over. A huge bump up in volume could push it through, I am not convinced by that happening however.

Would expect this to come back down to the 450 area.

Order placed short @ 506 – Stop at 517.8 – Position size £ 2.5 per point

Now the dreary position updates.

LSE: VLX

LSE: VLX
LSE: VLX

This one is a great example why I try not to buy on new highs which look like they could breakout. Look at the high volume big down candle making a new high then completely reversing. The market makers must absolutely know who wants to shift their stock, opens high, the bigger players start unloading to all of the speculative momentum traders trapping them in the process, at a very favorable price of course.

I have kept tabs on this one from the fundemental side, and its in quite a good space make electric cables and componants, with a foot in the electric car market. Long term could probably do quite well.

I did make a classic error with this one, as I move my stop down to prevent my self from a lower spike down.

Loss -£49

LSE: PPS

LSE: PPS
LSE: PPS

Really got drawn into this one with the 3 separate days of high volume coming in. It wasn’t to be, as the stock just slowly sunk away below what I thought could be a solid support level. Crystalizing a loss of -£31.38.

LSE: ENQ

LSE: ENQ
LSE: ENQ

You could call this ‘catching a falling knife strategy’ highly risky but it does sometimes work with great results. I am not sure I would have done anything different here, the entry was a little poor, just didn’t follow through with increasing volume.

Loss of -£33.86

LSE: QQ.

LSE: QQ.
LSE: QQ.

Time

will tell if I had my stop in the right place here, the breakout was very clear. The stock is volatile though and could consolidate a little while longer yet. Stop was hit, ill move on, I dont have a reason to get back into this at the minute.

Loss -£33.40.

So within a space of a week I have gone from net long to net short, if this is just a small blip, there is a good chance I will get caught out again lol. I have to remain disciplined and trade what I see, not what I think. Stock Trading is never easy.

Author: Sean
Part time private investor/trader.

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