5/30/2021 Stopped out of PTON at 108 on Wednesday for a loss. Indexes up 1-2% this week. HPQ looking good for a long entry at current price levels.

Hi everyone, I hope you had a nice weekend!

I was surprised when I got stopped out of my PTON short position at 108 on Wednesday. I thought it would take at least a week for the trade to play out, but it happened in just one day.

PTON daily chart below. I took a max loss when I got stopped out (1% of my account).

I’ve been looking at some charts for going long, but they all made significant upward moves this week, so I didn’t enter any positions. I think my overall view of market valuations is stopping me from taking trades on the long side, which is generally not good for swing trading. My average holding period for trades is about 1-3 weeks, so being scared that the market will crash if I buy now is quite foolish.

HPQ showed up on my stock screener this week for a pullback entry. It dropped quite hard on earnings, but the stock is still in a longer term uptrend. It follows my strategy of buying up trending stocks that have pulled back.

HPQ daily chart below. Ideally we want to enter a little bit lower around 28 which is ~5% lower, but entering now would work too.

If we hit 28, I’ll buy at least a half sized position, with a stop loss at 26.5 and a profit exit near the gap fill at 32.

I’ll look through some more charts next week and see if anything is worth trading. I’ll keep in mind that being scared of lofty market valuations is likely hurting my trading returns.

Please enjoy your week!

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