the recent WMT short trade is stands out as one of the more attractive R/R trades at this point and still looks to offer an objective entry at current levels. i often speak of the “beta adjusted position sizing” that i use when determining how large (or small) a position size to take on a trade. since WMT is a very liquid blue chip stock with a history of relatively low volatility, my preference is to take an larger than usual position size. anything can & will happen if you trade or invest in the stock market long enough, but the odds of waking up to a 20% upside gap in WMT while short the position is about slim to none (especially if you avoid the quarterly earnings reports). therefore, if one might normally take a position size of $10k per trade, then a $15k +/- position in WMT would be inline with the expected dollar (not percentage) gain or loss on a trade. the reason for this is you would normally allow for more conservative (smaller) profit target(s) and stop-loss level as you might with, say, a more volatile technology stock.
with that being said, T1 (68.97 level) remains my primary target on this trade for now but i have also gone ahead and officially added a second target at the 62.62 level. remember, the targets listed for most of the trade ideas posted here at placed at the key support (for shorts) or resistance (for longs) levels that i expect a reaction off of. however, i prefer to place my limit orders just above support (or below resistance) to help assure the odds of a fill. previous & updated 4 hour charts:
