WST offers a low risk short trade, specially if we open below 79.06 tomorrow. Risk a move back above 81 or higher.
You can enter a half position first, so keep risk to 0.5% or less. Max risk shouldn't exceed 1%.
Props to Tim West for all his help and insights.
Good luck!
Ivan Labrie.
Target: 59+, +9%
Stop: <53 (approx 52.5), -4%
Reason: Oversold to "Key Earnings Level" that has held declines after the last three earnings reports.
Risk: Less than half of the upside potential.
Reward: Up to the last earnings release level at the 60 level.
With the S&P futures up strongly this morning and relief from a Chinese market rally despite terrible...
For those of you just putting your toes in the water in the investment world, this is a good example of the long term wealth that can be built in the stock market.
What causes long term wealth? The compounding effect of sales growth through a profitable venture.
The investment world always has to say that the past does not predict the future and that past...
A very obvious distribution pattern (we all call a H&S top) and a clear downtrend, but it is right into support from the last KEY HIDDEN LEVEL - EARNINGS SUPPORT and furthermore, earnings are due shortly.
So, If we can see 51-52 to sell against AND earnings are out, then I would go for a short for a 49-47 target and risk $1-$1.50 from entry.
Tim 9:52AM EST ...
PORTFOLIO MANAGEMENT USING 5% and +/-1% Position Size
Use a starting allocation of 5% of a portfolio to this stock: When the stock outperforms relative to the S&P by 20%, the weighting will have risen to 6%. Therefore, trim the position back to 5% by selling shares. Sell 16.66% of your shares to trim the position from 6% back down to 5%.
Then, you wait for...
Technical forecast for short term price movement.
24 days of "supply" sit at $49 for WST.
Risk is 3 times the 10-day ATR.
Downside potential down under $45.
Low volume rally back into key, and maximum overhead supply zone.
Warning: Thin stock - average volume 410K shs.
Tim 2/18/2014 1:38PM EST
