On September 8 I analyzed Wolfspeed -WOLF- and laid out a potential post-earnings trade. The criteria and triggers were all met and the stock has made an impressive move (roughly 8% from the trigger to yesterday’s close) in a short time.
Revisit the report here: Watching WOLF and PGR
As part of the plan, this was mentioned -
As it moves higher sell some into the $120 area to book some profit and cover or reduce risk.
Well, here we are at the $120 area. Yesterday’s high of the day was 124.08.
The stock has -
reached a previous resistance level
is below that this afternoon
and is printing a DeMark 9 Sell Signal.
I won’t explain all the details now, (explanation here) but you should know that DeMark indicators can be a useful tool in timing market reversals.
So with this combination of factors:
reaching the target price area
previous resistance
and DeMark 9 sell signal
I’m reiterating the suggestion to adhere to the plan: trim and trail, book some profit, and reduce risk.
Then take a brief moment to celebrate a job (trade) well done before moving on to the next game plan.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
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