9 Apr, 2019

Trade Plan of the Week 4/9/2019

I’ve been bad about updated the posts for the last few weeks. I bought 2300 shares of KPTI last week at $5.89 average and sold them in 2 separate parts for an average of $5.69.

I don’t feel like the momentum scan or the market has really been doing me any favors recently, so I’m going to try changing a couple things for this week. As the SPX gingerly approaches an all-time high, RSI is also very high. These two factors make me hesitant to go long in the market. I think that we could be due for some consolidation here, if not a small pullback. I’m going to trade a bit smaller this week while I wait on the market to do something.

My stock for this week is RH. In the chart below, you can see that it dropped in late March due to some bad news and I think that it is beat up. It has been on a nice upward trend since then. I’m also looking at a long enough chart that I can see that it is normally well behaved. Note the inflection points in the RSI that I’ve marked. All of these signaled a trad-able, upward move.

As I noted, I’m going to trade smaller this week. (probably about half of my regular position) Note that this stock is pretty volatile for a $100+ stock, so don’t let that fool you and don’t chase. I’ll be looking to buy near $107 because this is where it consolidated some during the day today (Monday). If this gaps up more than 1%, I’m probably going to move on or wait for it to come down to my level. It was up almost 4% today, and I don’t want to chase it.

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