Yesterday we added ACLS at 3.29 with an initial stop at 2.87. We also added CCS at 21.82 with an initial stop of 20.50. With a risk % of .50 for each trade we were able to allocate 3.92% and 8.27% of our account value towards each trade. Today we sold ASC at 11.81 and FLTX at 46.92. Both stocks were taken off for small losses which is what we strive to do when we are wrong.
We gave ASC a second opportunity to work back into the consolidation area, but on the 19th it closed near it's low. Both the blue and yellow line moved down as well, which was a clear indication to moved forward and take our loss on the trade.
FLTX was removed once the price had moved below the dotted white line. A tight stop was used because FLTX had not been able to move out of the pricing pattern and allow breathing room on the trade.
After today's market action, many of the stocks that remain in the portfolio will have slightly tighter trailing stops then what is usual. The reason being is simply to protect our current profits and keep drawdowns to a minimum if the market continues to slide. Below are a few of the open position charts. EFOI continues to consolidate last weeks gains, but still remains constructive.
The watchlist took a good hit to it today. Many of the stocks which we are watching moved the wrong direction and will most likely be removed this weekend. Tomorrow we'll have a more detailed update with a few examples of the breakdowns. Currently BEAT and RTEC appear to be the most constructive and worthy of keeping an eye on.