4/8/2021 Started a half sized long position in Macys (M). Going to be a longer term swing trade (~4-5 week hold)

I set two limit buy orders for Macy’s last night, and one of them got filled this morning.

Half the order is for 15.71 (filled this morning), and the other half is for 15.1.

The stop loss is at 14.5 for both orders, and my profit exit is either 19.71 or before earnings near May 13th (about 5 weeks from now)

The current risk to reward, if my other half of the position doesn’t fill, is roughly 1.2 down and 4 up = risk to reward of 1 to 3. If the other half fills, that makes the risk to reward just over 1 to 4.

M daily chart below:

Lastly, if the stock closes at or below 15 on a daily basis, I am most likely out for a loss. As usual, if both positions get filled, my maximum risk is 1% to my account if I get stopped out.

The S&P500 is slowly grinding higher, and most of the time this means it continues higher in the near term without much of a pullback, but let’s see what happens. If we start breaking down, I may short a little bit in order to hedge the downside to M stock. This would change the trade from being just bullish on M to betting that M will outperform the S&P500 in the near term.

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