Every couple of weeks we provide an update of the overall status of the recent ALERTS! Here is the latest….
In this edition of The Rundown, we continue to look at the full list of ALERTS! with the various performance measures and go over some of the new ALERTS! that have triggered as well as the closing of some of the old. Below is table showing all of the current ALERTS! that are outstanding which include the latest three ALERTS! from this morning & afternoon, DreamWorks Animation (DWA), Shutterfly (SFLY) and Netease (NTES) which came later in the afternoon.
An exciting week has passed as stocks recovered all the losses from the beginning of the week and are challenging some of the losses from the previous week. The Eurozone Summit pushed equities across the world up higher as decisions appear to have been made regarding help for Spain and Italy. The reason we say appear is because the communication is lackluster at best and the details regarding the assistance is still up in the air. Much of the move up seems to be due to the fact that the Eurozone is at least taking a step to assist the ailing nations.
For ALERTS!, we had an outstanding winner in Westport Innovations (WPRT) as it moved up to the target level of $35.00 over the course of only 20 days resulting in a profit of approximately 22%. The position continues to move up higher, despite the key resistance that it has been facing. For those of you that may still be holding this position, it may be that time to realize any additional gains above the target level that was set.
Profit target areas and stop levels are set to take hope and emotion out of holding a position. Many times, traders get caught up in the intra-day movement and get spooked out, or cut profits too quickly. It is important to use these levels as a guideline as many times, it is not skewing the number of winners to losers, it is skewing the percentage gain of the winners to substantially outperform the percentage loss of the losers. The table below shows how TriggerPoint Research has skewed the number of big winners and contained the losses on positions that did not work out to losses less than 10%.
In the table above, you will notice how there are no losers that have had losses of more than 20%, but we have had 4 positions with gains of greater than 20%. It is also important to observe the skew in winners with gains above 10% while limiting the losses on the downside that are greater than 10%. While every trade might not go the way you want it, the trades that do, it is important to maximize the profits while limiting the downside risk.
The Summary of the ALERTS! in the report below includes the Date, Price at ALERT!, Stop Price and Profit Price (if applicable). It also includes the date the position was stopped out or hit its profit target or if the ALERT! lasted the full 30 days. As you will see in the report below, it is fairly rare that a position lasts the full 30 days before stopping out or taking profit. Stops are intended to limit our downside risk and profit targets are set as points to maximize our upside. The targets are based on sophisticated algorithms that help to determine where there are areas of key support or resistance. It is important to follow these guidelines in order to maximize the potential return for each position.
In the report below you will also see positions that are in blue, similar to the table above. These positions are those that have not reached their stop or profit levels and have not become stale after a the 30-day max holding period.
(Click to Enlarge)
It is important to note that the ALERTS! are through June 29th, 2012.
Download the full report below…
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