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,
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.
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%.
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)