Wednesday Update: Potpourri


Trading System

Of the 25 May and June expirations six have been stopped out at -75%, nine have reached +35% and 10 remain open between those two thresholds. 

Ten is about the most I want to have open at any one time so as to make the system as easy to manage as possible. An exception would be a particularly attractive set-up and/or risk:reward trade. Therefore, if you see a trade in the next few days, even with 10 open trades it will have an excellent probability of success. As each of those 10 open trades get closed out (hopefully at +35% for better) expect new trades as per our normal trading signals. 

The returns shown in the table below reflect the 35/75 profit-taking/stop trade management system. This is a huge improvement over the earlier strategy of taking 100% gains without using stops. Those gains did not compensate for the losses. It is clear that we have fixed that with the 35/75 strategy.


GBTC, the bitcoin "ETF," is a special situation trade from April 3rd at $6.19. At that time we placed a $3.75 stop on the trade. Move the stop up to $5.00 which is just below the Fibonacci retracement level of $5.12. 


Veracyte was recommended as part of the "Buy & Hold" biotechnology thesis. Although not an in-and-out trading vehicle, I would be remiss not to mention today's intermediate term Buy Signal. Initial target is above $30. 


STANDARD SERVICE TRADES (Including closed 35/75 trades)