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STZ Trade Setup

STZ (Constellation Brands Inc) will trigger a short entry on an move below 149.25 with a suggested stop over 158.00 (or lower, if only targeting T1 or T2). STZ is one of the components of XLP, the Consumer Staples ETF, and was covered in the recent Consumers Staples video.

STZ daily June 27th

STZ daily June 27th

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Jun 27, 2016 10:24am|Categories: Uncategorized|Tags: |8 Comments

8 Comments

  1. pangblood June 27, 2016 10:35 am at 10:35 am

    All these beautiful short setups and I can’t date any of them, she only goes with Margin :/

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    • rsotc June 27, 2016 10:46 am at 10:46 am

      I could be wrong but unfortunately, I don’t think there is an inverse (short/bearish) consumer staples ETF, probably because there is very little demand/desire from most to short that sector (which makes it all the more ripe for a nice, juicy bear market).

      1+

  2. LUV737 June 27, 2016 10:44 am at 10:44 am

    Earnings on thursday! Love the setup but probably not until friday!

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    • rsotc June 27, 2016 11:28 am at 11:28 am

      Thx for pointing out the earnings date on STZ as I haven’t have the time to scrub them all for earnings yet. Looks like a decent chance that the stock will hold up until then & likely gap down below the trendline & horizontal support should they miss expectations or issue lousy guidance.

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  3. pangblood June 27, 2016 10:54 am at 10:54 am

    @rsotc in the ETF centre sheet, it says the inverse is SZK

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    • rsotc June 27, 2016 11:26 am at 11:26 am

      Perfect! I’m glad you remembered to check that as I sure didn’t. SZK looks to fit the bill although it is very thinly traded so best to use limit orders when for your buy & sell orders. Right now it’s sporting a fat spread of 26 cents which is very high for a $20 security. I usually find it best to split the difference of the bid & ask & then round up slightly towards the ask (if buying) & place your order there. Give it a minute or two to fill as they might not take it right away. Also make sure to factor in these large spreads into your trading plan as you are guaranteed to lose that amount (on both the opening & closing trade) from the large spreads. Not a big deal if positioning for a swing trade targeting a double digit return but also keep in mind the decay from the 2x leverage. Best to cover (sell) at those key support levels that I highlighted on XLP (or any time that it looks likely that the sector might consolidate, bounce or trade sideways for a while) & then re-enter on a bounce or break of those levels. I plan to continue to update the sector on a regular basis in the coming months as long as the charts still look promising.

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  4. rsotc October 11, 2016 3:11 pm at 3:11 pm

    FYI- I’m reviewing the charts of the Trade Setups listed on the site that have yet to trigger an entry. The longer-term outlook for STZ remains clearly bearish although in bringing the Active Trades down to a manageable level, I may or may not remove STZ as a Short Trade Setup. However, if I do leave it on or for those interested in this potential long-term swing short candiate, I will almost certainly revise the entry price considerable higher as STZ has continued to climb along its uptrend line while currently forming a second, consecutive divergent high. A revised short entry will most likely be on a break below 162.10 (support) but again, I will make that determination soon.

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  5. rsotc October 31, 2016 11:00 am at 11:00 am

    In reviewing the official trade ideas today, I have decided to removed STZ as an official Short Trade Setup. STZ never triggered an entry & as such, never became an Active Trade. Therefore, this post & all related comments will still be accessible in the archives via the ticker symbol tag ‘STZ’ but it will not be reassigned as a Completed Trade since it was never an active trade at any point.

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