JASO Trade Idea
Earlier this year, JASO was the Trade of the Week. It reached its target of 6.48 for a move of 27%. Currently JASO is up 55% from that same February entry point. This is a great example of only selling half at the target to let the other half work for you if possible.
Trade Ideas technology has identified another setup to enter JASO.
The “Pullback above the 50 SMA” scan locates strong stocks that are pulling back for conservative entries ideas. JASO has been consolidating and also happens to have ended Friday with a large “washout bounce” candle that is another favorite counter move setup we like. Lastly, notice the average volume change that has come in over the last couple of weeks versus a 3 month average. These “washout” candles also back test well for longer time frame holds or swing trading as some people like to say.
This Trade of the Week is considered live only above 7.95 which is the high of Friday’s range.
The suggested stop will be at 7.34 which is derived from looking at a 15 minute chart. The upside target will be technical resistance and a round number of 10.00. So we are risking .62 cents to make 2.04 to the upside. Not a bad risk/reward with plenty of reason behind it. As always, your number one job is to manage your own risk.
Footnote: Footnote: This is a table showing the maximum profit for past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering your personal 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%. We will update this table when needed to bring data more current.
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)