Peak Velocity Trader AWS
Your Peak Velocity Trader Weekly Update By Michael Carr, CMT
March 13, 2018
The Power of Stops • Stops are among the most controversial topics for traders. Some traders believe they are necessary to protect capital. Others believe they hurt performance. • We now have data to show the value of stops. Since September, the 40% stop-loss rule has been triggered 14 times during this choppy market.
Ten times (71%), the price continued dropping and the loss would have been
larger. I’m glad we’ve limited the possible 100% losses these last seven months.
CTSH April $80 Calls • Opened on 2/15. • Collected a 50% gain on half of the position on 2/21.
• Second half of position is now up 55%.
• Uptrend remains intact. • Stock price appears to be
consolidating recent gains.
CA April $36 Calls • Opened on 3/9. • Position shows a small gain.
• P/E ratio and P/B ratio are half of the software and programming industry average.
• Profit margins and other
financial ratios are above the industry average.
ETFC April $60 Calls • Opened on 3/12. • The stock is breaking out of a base and has significant upside potential.
• Financial stocks could benefit from higher interest rates.
E-Trade • Its EPS is expected to be $3.25. And its EPS growth is expected to average 21.7% a year.
The PEG ratio provides a price target of $70.52. The stock is undervalued. • Its earnings report is expected on April 19, after the close. It beat estimates in the past eight quarters. On average, the stock rallies 0.8% after earnings.
Your Stop Levels
Looking Ahead • Look for more trade alerts. Several potential positions are near buy signals. • Expect the market’s uptrend to resume.
Want to ask a Question? I’m always looking at the Peak Velocity Trader inbox to read your feedback. So if you ever have any questions about my updates, just send me an email at:
[email protected] I may not be able to respond to each email, but I’ll always keep your comments in mind for future updates.
March 13, 2018
The Power of Stops • Stops are among the most controversial topics for traders. Some traders believe they are necessary to protect capital. Others believe they hurt performance. • We now have data to show the value of stops. Since September, the 40% stop-loss rule has been triggered 14 times during this choppy market.
Ten times (71%), the price continued dropping and the loss would have been
larger. I’m glad we’ve limited the possible 100% losses these last seven months.
CTSH April $80 Calls • Opened on 2/15. • Collected a 50% gain on half of the position on 2/21.
• Second half of position is now up 55%.
• Uptrend remains intact. • Stock price appears to be
consolidating recent gains.
CA April $36 Calls • Opened on 3/9. • Position shows a small gain.
• P/E ratio and P/B ratio are half of the software and programming industry average.
• Profit margins and other
financial ratios are above the industry average.
ETFC April $60 Calls • Opened on 3/12. • The stock is breaking out of a base and has significant upside potential.
• Financial stocks could benefit from higher interest rates.
E-Trade • Its EPS is expected to be $3.25. And its EPS growth is expected to average 21.7% a year.
The PEG ratio provides a price target of $70.52. The stock is undervalued. • Its earnings report is expected on April 19, after the close. It beat estimates in the past eight quarters. On average, the stock rallies 0.8% after earnings.
Your Stop Levels
Looking Ahead • Look for more trade alerts. Several potential positions are near buy signals. • Expect the market’s uptrend to resume.
Want to ask a Question? I’m always looking at the Peak Velocity Trader inbox to read your feedback. So if you ever have any questions about my updates, just send me an email at:
[email protected] I may not be able to respond to each email, but I’ll always keep your comments in mind for future updates.
