Hi Everyone, I hope you had a great day 🙂
Today was a very difficult day for trading. It started strong with the PCE data showing improvement.
PCE data showed the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 3.9% on an annual basis for August, the first time in over two years it had fallen below 4%. The Fed tracks the PCE price indexes for its 2% inflation target.
Yesterday the Nasdaq closed just above 13188 resistance line as you can see on the chart below. You can also notice on the lower pannel of the chart that the lower lows started to decrease and the advance decline stocks on the Nasdaq were improving. I didn’t trade for the last month and was wainting for this kind of improvement before testing the water.
Following this information I decided to buy 3 stock based on the daily list I prepared the day before. 3 Stocks showing relative stregth in the last weeks compared to the S&P. The first stock I bought was META. This stock had a really strong advance earlier this year and like you can see on the chart below is holding its gain pretty well even with the recent weak market recently. This one tries to break its sma50.
The second stock I bought is VRT. This stock also had a strong uptrend YTD and holding on pretty well. This one is trading close to its SMA50. Currently forming a flat base on the weekly as you can see on the chart below.
3rd stock was CAMT this one formed a high tight flag and broke thru it yesterday. I decided to buy on this morning follow thru. Look at the recent volumes on this one.
Unfortunatly the market was not too cooperative today and the strong start faded along the day.
The 3 stock I bought holded on pretty well but ended in the red in my portfolio on all of them. The worst performer was CAMT probably a false brake out well managed by the algos :-).
Personaly I’m not satisfied with my trading today,
1- I should improve my position sizing strategy
2- Also improve the placement of my stop loss
3- Lastely enter more gradually.
Hope this is helpful, trading is hard and we will always make mistakes here and there. But the important is to take notes about these mistakes and try to improve from them.
On this I wish you a great week-end.
Please note that this is my trading journal that I use to improve as a trader and trying to become the best trader I can become. I share this journal hoping it can help people. I’m not a financial advisor and all the content of this site is not financial advice.