HLF | Herbalife is your Stocks Trade of the Week

HLF Stocks Trading Idea

What is one of many things bad traders and investors do that contributes to their failure? Answer; sitting short in a stock that has a high short float % and looks as if it is ready to break out to new 52 week highs. HLF on the “Squueze Me” Scanner!

This week, Trade Ideas technology seeks to exploit those people using the “Squeeze Me” scan for just such a scenario. Herbalife (HLF) has 34% of the 90 million share float sitting short (meaning they need to buy to close their positions). A break above 74.50 and HLF is off to new 52 week highs forcing the short sellers to buy (cover) or sit thru more pain.

image of squeeze me stocks scanner with HLF highlighted

The Trade of the Week is conditional of a print at 74.50 in HLF this week to be considered live and on the books.

The suggested stop for HLF will be a break below 70.00.  The suggested target is 83.50 which just happens to be all-time highs for HLF. If this target is achieved, it may be wise to consider selling only half the position to see if the other half can make new all-time highs. Please only use an amount of shares that works for you in case the stop level beneath 70 needs to be adhered to for risk management.

image of HLF stocks trading chart

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%.

image of trade ideas AI trading results 2017
*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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