A couple of things to discuss this evening. One was a left over from the Round up.
I had indicated that there was a warning on the SSO chart, so let’s take a look at it.
You will see in the chart above a vertical line at position 1. That is there to demonstrate that while we have a high in price (I allow 60 days to go by before classifying something as a “new high”), we don’t have a new high in the ROC in the lower pane.
This has always been a warning for me that all was not well. That doesn’t mean that the ROC can’t go back to its proper relationship with the price, but in the meantime I add a trend line to the chart. If that trend line is crossed i.e. a candle closes below it, I tighten my stop to just below the low of that candle.
Now, onto a stop-out.
You will note a high at position 1 of $63.20. Our trailing stop which was set at $3.94 under the market price has climbed up with the price. That high anchored the stop at $59.26.
When the price fell back to the low at position 2, we were stopped out at $59.26.
This is how that looks:
$61.57 (purchase price) – $59.26 (stop out price) = $2.31 loss per share.
200 shares X $2.31 = a loss of – ($462)
The portfolio gets updated to reflect the loss: $138,066.90
That’s it for today. If you have any questions or comments, they are most welcome at: email@example.com.