Following Up on Last Week’s Focus List
How I’m managing the trades that triggered
Last week I put out a focus list of ten names I was stalking. I placed resting orders on eight of them and was just watching the other two.
The three buy stop orders triggered on Tuesday, May 26: KLAC, MKSI and HUT. CIEN was a limit order and triggered on Friday, May 29.
The four other resting orders didn’t trigger, and I’ve cancelled those and moved the names back to my watchlist.
Charts below are from the pre-market on Wednesday (June 3, US time). CIEN and HUT are intraday so I can show the recent price action up close.
KLAC (daily)
On the daily charts, the black line is the 20-day SMA, green is the 50-day, red is the 200-day.
I entered on strength with a buy stop, filled at $1,960.05 on May 26. I’ve raised my stop-loss from $1,780 to $1,860, which sits back below the breakout area, the low on Monday, June 1, and the rising 20-day.
MKSI (daily)
This is a good example of the buy stop gap risk I flagged in the original post. My order was at $325, but it gapped up and filled at $332.82 on May 26. I’ve raised my stop-loss from $289 to $306, under the low on Monday, June 1, and the rising 20-day.
HUT (30 min)
Filled at $113.50 on May 26. It ran to about $140 yesterday, June 2, but reversed, closing below where it opened. I don’t like the look of that daily candle, so I’ve moved my stop-loss up to $117.85 to lock in some profit if it continues lower. Since it pretty much went straight up from the breakout, there’s no obvious daily pivot low to put it under, so I looked at the 30-minute chart and placed the stop under what would be a break to lower lows on that timeframe.
CIEN (15 min)
The limit order at $560 filled at $559.55 on Friday, May 29. It had a big day yesterday, closing at $627. Ciena reports earnings before the open on Thursday (June 4, US time). Normally I want at least a 10% profit cushion before I’ll hold a swing trade through earnings. I’ve raised my stop-loss to $607.50, which is about 8.5%, just under that buffer. If it stays around current levels or pushes higher again tonight, I’ll be happy to hold through earnings. If it drops to around $610 and doesn’t stop me out, I won’t quite have the buffer I’d like, but it isn’t a very large position so I’m willing to accept that risk.
I’ll try to keep sharing these so you can see how the setups actually play out, not just the entries.
Cheers!
Marcus Grant, CFTe
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