Last week was an excellent week of trading in the Splash Zone. There wasn’t a ton of trades, and there didn’t need to be. The positions that were in our portfolio did their thing and continued to progress in value.
With six trades overall, five of them were in the green and either were closed out for a profit or are still trending higher. The one exception was EMN and we managed that one as best as we possibly could have getting out of the trade when it was going wrong for us and avoiding the eventual stop-out that would have occurred on Friday’s gap down. But heading into this week, EMN has had a 180 of its own and could be a possible long setup again for us.
Booking strong gains like what was seen last week with MJN for over 4.6% and replacing it with another potential winner in AMTD allows us to keep the momentum going with new fresh trade ideas while mitigating the risks and replacing those stocks that are showing signs of being overextended in the near-term.
Also key to last week was how we handled the NFLX shenanigans. NFLX in general, is always a difficult stock to trade. We got out of it at 2% after being up 4% originally. At that point, we needed to avoid having a potential 4% resulting in a negative trade. That wasn’t an option for us particularly after the price action that was seen on Wednesday with the bearish piercing pattern. But once we saw the stock bounce off of the 10-day moving average, and start to push back higher, it was worth it to me to get back in with a new stop-loss and to try to ride the stock back up and now as a result it broke the week’s highs and looking to still push higher.
So overall, the week was good, and we’ll seek to duplicate the same success in the first full week of trading in April!
