TOT | Stocks Trading Idea of the Week

Stocks Trading Idea for TOT | Total SA

As the markets are over bought after many days of run-up, it becomes important to focus on good entries rather than chase momentum. The Trade Ideas technology that looks for large cap stocks pulling back to their 50 day moving average is a safe pool to swim in right now if you have to look for a long side entry. Stocks tend to move in a “3 steps forward, 2 steps back” mentality and using an entry like this will help in timing the jump rope that is needed in an environment like this.  TOT appears in this strategy,

image of pullback scanner with TOT

TOT closed at 52.21 on Friday. The Trade of the Week in TOT is considered live on the opening print Monday June 5th. The suggested stop will be 51.40 which lies just beneath a possible gap fill. Using the 9-day pullback as our way to mitigate risk on the entry, a tight stop can be used for conservative risk management.   The upside for this trade will be the prior high at 54.70. The bottom line here is risking 80 cents to make 2.50.

image of stocks trading chart for TOT

image of Trade Ideas banner

Footnote:  

This is a table showing the maximum profit for all past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering the exit of these positions. The trades outlined in red eventually hit their suggested stop prices, so you can see the importance of timing and harvesting profits along the way when you can, especially those that move above 10%.

 

imge of trade ideas results
*Assumptions
Targets are not absolute. Targets involve timing. Profits can and should be harvested along the way.
Risk to Reward ratio ideal is 1:3
Trades of the week that do not reach entry prices are not considered live and are expired at the end of the current week. (ORCL and JNPR)

TOW Rules: 20% Rule.  If a performance is up 10% and gives back 20%, take the 8 and run. (Profit Save, Trailing Stop).

Stocks that gap up over the entry price are considered up to the discretion of the buyer as to the entry price (WETF)

Happy investing!
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Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

Trade Ideas

Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

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