For those in the HPQ long trade, consider trailing or ratcheting up your stops as the stock continues to move higher following last week’s big stop-clearing gap lower. HPQ has already gained over 10% from where the stock bottomed out immediately following the opening bell last Tuesday for the reasons discussed earlier. This is a great example of why I pull & re-set my stops to avoid getting taken out with the masses when getting caught on the wrong side of a big gap.
My price targets remain as originally posted for now although personally, I will likely exit the trade here soon as the partial position that I took approaches break even. However, that is more a reflection of how I wish to bring my overall market exposure back to an aggressively net short positioning this week more so than the outlook for HPQ. For those in the position that are bullish on the market and believe that we are going much higher, probably best to continue to raise your stops on HPQ to help assure a breakeven or better as/if the stock continues to move higher. The original 4-hour chart along with the updated 4-hour period chart are below.