Learn To Trade
And Become Profitable.

Join the thousands of other traders and start trading successfully with my proven trading strategies and free resources.

Good example of using stop-loss orders for protecting profits on my current trade of Flex Ltd (FLEX)

Which happens to be a Contract Manufacturer in the technology sector, with a market cap of $8.8B

I was really drawn to this stock when it pulled back following the sharp spike higher in January. Not to mention the volume has been tremendious of late, and buyers are seriously interested in this play. With extreme bullish market conditions, this stock has simply climbed higher the entire way. With this kind of strategy it is unnecessary to dive into the world of options and start using protective put or call strategies. 

stop loss orders flex swing trading

Technical Analysis:

  • The S&P 500 (SPX) took a breather yesterday when it decided to sell-off ever so slightly. 
  • The 5-day, 10-day and 20-day moving averages on SPX are converging and offered an excellent support level for the bulls to bounce off of yesterday. Watch that level of support, again today. 
  • Light Sweet Crude Oil Futures (/CL) still range bound and could go either direction at this point. However it is trying to string together a 3-day winning streak. 
  • Volume on SPDRs S&P 500 (SPY) barely fell yesterday, but did so for a third straight day, and the readout was also below recent averages. 
  • Bull flag on the SPY/SPX charts that I would expect for the bulls to eventually push through. 
  • A good rally today will put the Dow Jones Industrial Average (DJIA) past the 20,000 mark and put the meaningless story to bed. 
  • CBOE Market Volatility Index (VIX) got slammed for a third straight day. Support hovering around the 11.25 area. Potential for a bounce here. 
  • Nasdaq (QQQ) bucked the trend yesterday of the other indices with a rally of its own. It is poised for new all-time highs yet again. 
  • The "January Effect" which many believe is a barometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year. 

Technical Analysis:

  • A much cleaner trading session for the bulls, as the market opened and rallied higher on the day, leaving little doubt as to who was in control during the session. 
  • Biotechs saw a solid push higher yesterday which provided the market with a solid floor to work from. 
  • Nasdaq (COMPQX) looked re-energized yesterday and poised to retest its all-time highs from last week. Year end price action in this index was very concerning. 
  • The 5-day moving average on the S&P 500 (SPX) was recaptured yesterday by the bulls and puts the index right back at all-time highs again. 
  • Volume on SPDRs S&P 500 (SPY) dropped off yesterday and has declined for a second straight day. Yesterday's reading was also below average. 
  • FOMC Minutes released yesterday had no meaningful impact on the market. 
  • CBOE Market Volatility Index (VIX) has continued its hard reversal yesterday, dropping another 7.3% down to 11.85. 
  • Strong recovery out of United States Oil Fund (USO) yesterday as price popped back above the 20-day moving average and looks more range bound over the last month. Play the range for now. 
  • Expect some short-term resistance all the way up to 2278 on SPX today. 
  • Despite the rough start to the Santa Rally last week, it still managed to finish the relatively bullish period, with 2 points of total gains on SPX. 
  • The "January Effect" which many believe is a barometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year. 

Technical Analysis:

  • Volatile trading session to start the year with the initial gap up being all but squandered before the end of day rally restored much of the day's morning gains. 
  • This was the first time S&P 500 (SPX) has traded higher during the "Santa Rally". Today will be the last day of this  rally - so far the return has been negative for the market. 
  • Expect some short-term resistance between 2259 and 2272 on SPX today. 
  • Clearly the market has lost some of the enthusiasm that it portrayed the couple of months following Donald Trump's election victory. Careful with continuing to add new trades to the portfolio here. 
  • Volume has increased on SPDRs S&P 500 (SPY) over the past two trading sessions and returned to average levels. Much more liquidity than what we saw during the days before and after Christmas. 
  • Bullish kicker on SPX yesterday, where following a selloff, the bulls gap above the previous day's opening price and closes higher. 
  • The 5-day and 20-day moving average were recaptured yesterday. 
  • SPX on the weekly chart is putting together a nice bullish flag. 
  • The "January Effect" which many believe is a barometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year. 
  • CBOE Market Volatility Index (VIX) snapped its six-day winning streak with a sizable -8.5% sell-off down to 12.85. 
  • Light Sweet Crude Oil Futures (/CL) experienced a massive sell-off yesterday after gapping higher for the year and forming a bearish engulfing candle pattern. Lots of caution is warranted here on the oil trade. 

Technical Analysis:

  • A dour way to end 2016 on a 3-day losing streak for the S&P 500 (SPX).  
  • The last three times, the month of January has finished lower. It has yet to do so four straight months. But as we have seen plenty of times before, the market has no problem doing something for the first time. 
  • The "January Effect" which many believe is a baraometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year. 
  • Volume on SPDRs S&P 500 (SPY) on Friday held strong with a surprising, above average performance and well above recent averages - more than double the day prior. 
  • SPX broke the 20-day moving average and is now trading in the lower half of the daily bands. 
  • Look for rising support on SPX coming off of the August highs, as depicted in the chart below. 
  • CBOE Market Volatility Index (VIX) is spiked for a fifth straight day and by another 5%, to close just above 14. 
  • Light Sweet Crude Oil Futures (/CL) is looking for a strong start to the year, by gapping up more than 2% higher and continuing the end of year rally from 2016. 
  • Nasdaq and tech as a whole continues to feel the brunt of the recent sell off. 
  • Many of the very bullish sectors and industries that surged following the Trump election, have been the ones exhibiting the most weakness of late (i.e. banks, industrials, etc).
  • The market is looking at a gap higher to start the new year, which would represent Day 4 of what is historically know as the Santa Rally period. 

Technical Analysis:

  • A sell-off yesterday that was hardly a sell-off for the S&P 500 (SPX). Price fell by 0.66 points or 0.03%. Essentially it was a day of sideways price action. 
  • SPX found support right at the 20-day moving average yesterday by forming an indecisive doji candle just above it. 
  • Volume fell off some yesterday on SPDRs S&P 500 (SPY) but that is expected with year end upon us. I expect more of the same today. 
  • CBOE Market Volatility Index (VIX) rose for a fifth straight day. The best winning streak since the late October run. Still, the VIX is trading at 13.37 with a 3.2% rally yesterday. 
  • Barring a major rally by the Dow Jones Industrial Average (DJIA) it will have to wait until next year to cross the irrelevant 20,000 market. Volume has also pealed off quite dramatically on the index compared to where it was following the election. 
  • Nasdaq (COMPQ) also found support at the 20-day moving average yesterday. 
  • SPX is trading right at the lower end of a recent trading range, and should the market sell-off today, would break below that and confirm a short-term topping pattern. 
  • Light Sweet Crude Oil Futures (/CL) showing some weakness heading into the open, though its current trend-line is well intact. 
  • Day 3 of the Santa Rally is upon us, with nothing to show for it as the market has sold off during the first two days. 
  • I have thoroughly enjoyed trading with you all this year, and look forward to an epic 2017 filled with many new trading opportunities and adventures. This particular year of trading had so many shock events and the craziness was through the roof. But we survived and profited from those events. I can't wait to see what next year holds for us! 

Technical Analysis:

  • The S&P 500 (SPX) jump started the Santa Rally with a hard sell-off yesterday that sent equities reeling nearly 1% and to the lower end of the short-term trading range. 
  • Price broke the 5-day and 10-day moving averages and threatens to test the 20-day moving average today. This is the strongest sell-off seen since the rally began during election week. 
  • SPX needs to hold 2248. Dow Jones Industrial Average (DJIA) has yet to break through the non-important 20,000 level. 
  • Volume increased yesterday by 50% yesterday on SPDRs S&P 500 (SPY) but still well below recent averages and should remain below average through the end of the year. 
  • CBOE Market Volatility Index (VIX) saw one of its biggest increases of late by jumping 8% without any late day sell-offs (a rarity). The August support level continues to hold strong. 
  • Big sell-off on the T2108 (% of stocks trading above their 40-day moving average) that raises concerns about the market being able to continue this rally as the number of stocks tradidng above the MA dropped significantly from 72% down to 65%. 
  • Light Sweet Crude Oil Futures (/CL) trying to rebound today. The trend-line in oil is far better than what is out there on the indices. 

Technical Analysis:

  • Yesterday marked the twelfth consecutive day in which S&P 500 (SPX) was stuck in a sideways trading range of 29 points. 
  • Today is the beginning of the 5-day trading even traditionally known as the Santa Rally, which encompasses the last three trading sessions of the year and first two trading sessions of the new year. 
  • Last year's Santa Rally was a disaster for the market. It was down three out of five days and literally jump-started a sizable market sell-off. So don't take these Santa Rally's for granted. 
  • CBOE Market Volatility Index (VIX) rose for a third straight day and off of key support dating back to the August lows of this year. 
  • Slight uptick in volume yesterday on SPDRs S&P 500 (SPY), considering that Monday had the lowest volume day of the year, that isn't necessarily an achievement to brag about. And yes, it was still well below recent averages, and will continue to be so through the rest of this week. 
  • SPX recaptured the 5-day and 10-day moving averages. 
  • Once again, the Dow Jones Industrial Average (DJIA) was shown the hand and kept from achieving 20,000. Every time this happens, it makes me laugh, as the pundits on TV and the blogosphere keep making such a big deal about a meaningless level that really doesn't represent anything but a big round number. 
  • Light Sweet Crude Oil Futures (/CL) still marching higher in an attempt to rally into the year-end and for a fourth consecutive day. It has a solid trend-line in place off of the November lows. 
  • There is very little news left to be reported before year end. Expect continued light trading and limited price action. 
  • Nasdaq (COMPQX) remains strong as it continues to form new all-time highs. Yesterday it attempted to breakout of the short-term consolidation range. 
  • For now the market remains very bullish and shows little to no indication it desires to pullback in the near term. Trying to front-run a market top at this juncture is a very futile exercise and should be avoided. Wait for the market to show signs of cracking via price action before getting net short on this market. 
  • So far the market is basically ignoring the rate increase entirely. There has be no impact so far. Last year, the selling picked up considerably right at the end of the year when the traditional Santa Claus rally typically kicks off.

Technical Analysis:

  • For the past eleven trading sessions, the S&P 500 (SPX) has traded in a sideways trading range. 
  • This isn't unusual for this time of the year as the volume dries up and the big players on Wall Street head to the Hamptons and neglect the market. 
  • Tomorrow will formally start the Santa Rally, which is the last three days of the year and first two days of the next trading year. Last year though, this time frame was a disaster for the market. 
  • The day after Christmas (the 26th) has historically been the most likely day to trade higher out of the entire calendar year. That was yesterday and the market was closed yesterday, but I think those statistics apply to the next trading sessions following Christmas, rather than the 26th specifically. 
  • Traders still anxiously await for Dow Jones Industrial Average (DJIA) 20,000. It is really a meaningless achievement for the market and shouldn't be seen as anything of significance.
  • SPDRs S&P 500 (SPY) had its lowest volume day of the year on Friday - even less than the half day of trading following Thanksgiving, just over a month ago.
  • Some lower-highs forming on the 30-minute chart of SPX, but no definitive lower-lows. Trading sideways at this point. 
  • Light Sweet Oil Futures (/CL) remains in a long-term bullish pattern as it exhibits a solid inverse head and shoulders pattern over the last 15 months.
  • For now the market remains very bullish and shows little to no indication it desires to pullback in the near term. Trying to front-run a market top at this juncture is a very futile exercise and should be avoided. Wait for the market to show signs of cracking via price action before getting net short on this market. 
  • So far the market is basically ignoring the rate increase entirely. There has be no impact so far. Last year, the selling picked up considerably right at the end of the year when the traditional Santa Claus rally typically kicks off.

Technical Analysis:

  • Quiet day yesterday for the stock market as the S&P 500 (SPX) pulled back a meager 5 points. 
  • Volume on SPDRs S&P 500 (SPY) was dropped significantly from the previous day's reading and was well below recent averages. You can expect even lighter volume today and tomorrow as more traders leave for the Christmas holiday. 
  • Price action too will become very sluggish and in some cases unsustainable. Aggressive moves will much less likely and breadth will flatten out some. 
  • The rising trend-line that started off of the November lows is being tested, following yesterday's pullback. The trend-line is extremely steep, so that, even if the trend-line is broken, doesn't necessarily mean that the market will start to sell off again. Instead it merely suggests that the move is flattening out a bit and not as bullish as it once was. 
  • CBOE Market Volatility Index (VIX) continues to get slammed. Yesterday, it actually dipped below 11 intraday, but closed the day at 11.27 and down 1.6%. The support level going back to the August lows held yesterday. 
  • United States Oil Fund (USO) pulled back yesterday a good bit, but the rising trend-line is still intact and is looking to recover at the open today. 
  • For now the market remains very bullish and shows little to no indication it desires to pullback in the near term. Trying to front-run a market top at this juncture is a very futile exercise and should be avoided. Wait for the market to show signs of cracking via price action before getting net short on this market. 
  • So far the market is basically ignoring the rate increase entirely. There has be no impact so far. Last year, the selling picked up considerably right at the end of the year when the traditional Santa Claus rally typically kicks off. 

Page 1 of 599

the part time swing trader by Ryan Mallory