The MRVL short trade slightly exceeded the suggested stop of a move above 13.31 for a 5% loss last week & will be removed from the Active Trades category. For those giving this trade a little more wiggle room on their stops, MRVL still looks likely to hit both price targets in the coming weeks with a break of this minor yellow uptrend line an objective short entry or add-on.
MRVL daily Oct 31st
I also wanted to add that I was unable to finish updating all of the official trade ideas before leaving town on Friday & plan to continue to do so this week and as such, I only be checking in on the trading room periodically until all official trade ideas have been updated. There aren’t any new significant technical developments to report on the with regards to the broad market since the last few updates. The common theme that I continue to focus is the fact that the broad market still continues to grind around in aimlessly following those major uptrend line breakdowns on all of the primary US stock indices while sitting just slightly above the critical support levels which I had recent referred to as ‘flashpoints’.
Despite the fact that more or less, the broad markets have essentially gone nowhere for over 3 months now, that does not mean that there haven’t been any decent trading opportunities. I continue to focus on trading the most attractive trade setups on individual stocks and sectors and while the combination of a sideways, choppy market plus earnings season now underway, that has lead to an increased rate of “stop runs” on many of the trade ideas although on balance, both the official & unofficial trade ideas have been considerably outperforming the market with some very large gains booked as price targets have been hit which dwarf the losses on those trades that has been stopped out.
Bottom line: Until all of the major stock indices take out those flashpoint support levels, trading the broad market tracking ETFs will continue to prove frustrating. Even if/when those levels give way or the market manages to break out to new highs & run, it still appears that the profit potential on select sectors & stocks as well the R/R, is much more attractive when trading the most bearish & bullish sectors & individual stocks as one of the major themes throughout 2016 has been sector rotation. For those swing trading individual stocks, remember to check your positions for any upcoming quarterly earnings announcements if you preference is to close/reduce or hedge your positions against a possible earnings-induced gap.