PPO was a simple bounce off trendline and 20D play. This is a stock that I played mutliple times and on my core list. I would not be involved in this trade if I did not think SPY is going to rally for rest of day.
I bought 65.70 when it cleared previous day's consolidation with stop at 65, intraday target is 67, 67.75-68 and swing target is 70. r/r of 2:1 to 7:1. My plan was ride it till I change my view of SPY or PPO loses uptrend. I would not carry this overnight if I did not take some profit intraday and has cushion.
I sold 1/2 at 67.95 when it reaches my target of 68 around end of day for 2.25 (about 3.2R). I then moved the stop for remaining share to under 67. Next day, market opened weak and PPO dropped 67, I was stopped out at 66.92 at the open for +1.22 (1.7R).
thoughts #1: never had the volume on the bounce. I did not love the bounce without the volume and I did not have the right swing stop. I was the weak hand. I was too greedy when it was not an A trade to me. I still struggle on expecting swing targets to be hit when I do not want to hold through big retracements.
thoughts #2: if I intend to swing this, I would need the stop to be around breakeven or remain at 65.
- Chris
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