Do you want to catch the next market outperformer? Read this short article and you’ll know exactly what to buy and when to buy it. As market conditions align and technical indicators point to a prime buying moment, understanding when to act is crucial. This piece explores the pivotal $39 price point and its significance in the context of current market trends.
Why $39 is the Magic Number
Have you ever wondered why certain price points are like magic spells in the stock market? Well, $39 for this particular stock isn’t just a number—it’s a beacon for action. This isn’t just about psychological pricing; it’s about historical performance and a knack for attracting a flurry of activity.
And why does this matter to you? Because when a stock hits a predetermined price like $39, it’s often a signal that things are heating up. I’ve noticed this price acts like a magnet, drawing in both seasoned investors and curious newcomers. It’s not just random—it’s calculated anticipation. So, what can this number do for your portfolio? Keep reading, and you’ll find out just how $39 can transform your approach.
The Role of Technical Indicators
I use the EMA-21 and SMA-50 lines to guide my trading decisions. Why these two? Because they offer a clear, actionable look at how a stock is performing over short and medium terms. The EMA-21, being more responsive, tells me what’s hot right now. And the SMA-50? It smooths out the noise, showing a broader trend.
And when these two lines cross, especially under the right conditions, it’s like the stock market is speaking directly to us. Think of it as the market nodding its head, signaling a strong buy or sell. Curious about how this works in real-time? Don’t worry, I’ll show you how to spot these moments and make them count.
Analyzing Market Trends
Analyzing the market is like reading tea leaves, except the leaves are data points, and the tea is your investment future. I look for signs of consistency—patterns that repeat. Because once you know the rhythm, you can dance to it.
And isn’t that what we all want? To move confidently with the market’s ups and downs, turning insights into profitable decisions. How do these patterns emerge, and what should you be looking for? I’ll break it down soon, showing you how to read the signs before making your move.
Preparing to Take Position
When the market whispers, it’s time to lean in close. Setting up to take a position at $39 isn’t just about watching the number roll up. It involves preparing for several scenarios. What if the price hits and bounces back? What if it keeps climbing? Having a plan for these moments is key.
And how do you prepare? First, understand your entry and exit points. Set up alerts, know your risk tolerance, and decide in advance how much you’re willing to invest. Isn’t it better to enter the fray with a clear mind and a solid plan? Here’s how I do it, step by step.
details of the last trade
Explanations for the Drawing: The upward purple arrow shows where I bought the stock. The downward purple arrow shows where I sold it.
Green Line 21-day exponential moving average line (see EMA 21 below)
Red Line 50-day simple moving average line (see SMA 50 below)
Black Line 200-day simple moving average line (see SMA 200 below)
At the time of this writing, the price of the stock is below the red and green line. If the stock price won’t tumble and the overall market conditions recover, then the magical $39 price level where to buy is at the green line.
Opening
- Underlying: APG
- Date: 16 Apr 2024
- Underlying Price: $38.94
- Stop Loss: $36.60
- Profit Target: $46.73
- Market Outlook: Uptrend under pressure
- RS Rating: 94
- RS Line Trend (U/N/D): U
- Industry Rank (X / 197): 22
- Volume U/D Ratio: 1.6
- Institutional Ownership Trend (U/N/D): N
- Position Risk, %: 5.95
- Position Risk to NL, %: 0.32
- Potential Profit (Position), %: 19.83
- Risk to Reward Ratio: 0.30
- Position Size, %: 5.30
- Why Did I Open This Trade At That Point? (e.g., CAN SLIM, EMA 21): The price of the stock broke above EMA-21 line. The metrics were good, so I bought the stock back.
- Was It an Ideal Buy?: No. Price was not coming out of the base.
- Remarks: Sales growth was only 3%. CAN SLIM requirement is at least 20%.
Closing
- Date: 17 Apr 2024
- Price (Close): $36.89
- Market Outlook: Uptrend under pressure
- RS Rating: 93
- RS Change: -1
- Remarks: The position was stopped out. The market is under pressure and most of the stocks are falling. The latest base was 3-th but the price trend of the stock is not that old. The depths of the previous bases have been low and the bases have been frequent. As of now, I consider myself as unlucky with timing. I am planning to take the position once the price goes above the EMA-21 line and EMA-21 line is still above SMA-50 line. If conditions won’t change much this happens near the $39 price level.
Results
- What Went Well?:
- I was prepared to use STP LMT order when I opened. This means that I had done my homework and I was confident enough to open the position immediately when the price was right.
- I did well that I took the small position – portfolio loss was relatively small.
- Cause of Error / IMPROVE:
- Again, I bought the stock that wasn’t coming out of its base. That being said, there are not many of the stocks which do that due to the market conditions.
- When I bought the stock I should have set the stop-loss tighter because the market’s uptrend was under pressure.
- Lessons Learned:
- I need a system or a rule which says that how often I am allowed to trade during tough times in the market. One opening position per week maximum?
- This is what usually happens when you buy stocks at the time when the market uptrend is under pressure. That doesn’t mean that you shouldn’t try to open a new position but you need to be aware that price once that went up can go down rapidly – that’s what volatility is.
- Position ROI, %: -6.93
- Position ROI (Portfolio), %: -0.37
- Position Open Time (Trading Days): 1
- Position Open Time (Days): 1
This reorganized format provides a clear separation of the different phases of the trading activity and helps to better understand the flow and outcomes of the trade.
terms and definitions
EMA 21 Calculates the 21-period exponential moving average, highlighting short-term trends.
SMA 50 Averages the price over 50 periods, showing medium-term trends without overemphasizing recent data.
SMA 200 Averages the price over 200 periods, revealing long-term trends by treating all data equally.
Industry Rank Investor’s Business Daily’s system that ranks industries 1 to 197 based on performance. It guides us in CAN SLIM TRADING towards leading sectors.
U/D Ratio Measures stocks closing up versus down. A ratio above 1.0 indicates bullish sentiment, important in CAN SLIM TRADING.
RS Rating Ranks a stock’s performance on a 1 to 99 scale. I look for at least 85, showing strong momentum and growth potential.
RS Line Compares stock price to the market, plotted as a ratio. We seek an uptrend, indicating outperformance and strong momentum.
Volatility Measures how much a security’s price fluctuates over time. High volatility means large price changes, indicating risk and potential reward.
Institutional Ownership Trend indicates whether the stock is under accumulation or distribution by the institutions.
EPS (Earnings Per Share): A financial metric calculated by dividing a company’s net profit by the number of its outstanding shares. It indicates the amount of profit attributed to each share of stock, serving as a key indicator of a company’s profitability.
conclusion
In the dynamic landscape of stock trading, being well-informed and ready to act when the conditions are right can make the difference between a missed opportunity and a profitable investment. By keeping an eye on the key price of $39 and the critical indicators discussed, you position yourself at the forefront of potential gains. Remember, the key to successful trading is not just in knowing what to buy, but importantly, when to buy it.
