BXS First Profit Target Hit
The BXS (Bancorpsouth Inc) Active Short Trade hit the first profit target, T1 at 20.54, today for a 12.8% gain since the original entry on July 17th. T3 at 18.30 remains the final target for now although each trader should decide whether or not to book partial or full profits as any of the near-term targets are hit, depending on their own unique trading style, risk tolerance and time frame. Typically, reactions are common upon the initial tag of each target level.
click here to view the live, annotated chart of BXS
When taken in context of the intermediate & long-term time frame, short trades are still considered counter-trend trades at this time. As such, the risk of many of the recent short trades making a lasting reversal at any of the initial price targets is certainly something to consider. Based on my interpretation of the charts, especially the bearish case that I’ve been outlining in the financial sector for weeks now, my preference at this time is to refrain from booking any quick profits, instead riding out any short-term counter-trend bounces until/unless the overall technical picture convinces me otherwise.
On a final note; at times when the market is moving fast, it is not uncommon that I get a dozen or more price alerts of trade setups triggering entries as well as active trades reaching profit targets. An update to every single trade idea on RSOTC is always posted, winners and losers, in order to archive each trade for both accountability (track record) as well as an educational resource to be able to reference past trading history and price action on specific stocks, ETFs, chart patterns, etc… However, during times of rapid price movements or periods when I’m away from my desk or preoccupied with other trading or non-trading issues, notifications of breakouts and trades reaching a price target are not immediately published.
All trade ideas list specific entry (long/short triggers) and exit (profit targets) levels and during times of increased volatility or price movement, there will often be considerable delays in updating trade setups that have triggered an entry or active trades that have hit price targets. As these entry & exit levels are clearly defined in advance, it is imperative that each trader sets price/trendine alerts and/or buy/sell stops or limit orders to automatically open or close the trades that they are interested in. Limit orders to sell a long or cover a short trade at your preferred price targets are especially important for those that do not have the luxury of sitting in front of a computer all day during trading hours. OCO or OCA (one-cancels-the-other OR one-cancels-another) orders are an invaluable tool to traders & investors, especially those who are not able to actively monitor their positions throughout the trading day. Feel free to contact me if you have any questions regarding OCO /OCA orders.