Hello Y’all, last week we lamented about how we missed out on our great looking digonal setup because we chose price over fill which by the way is the smart way to go most of the time. We also talked about how the market gods might see fit to grace us with another opportunity to jump into the trade. This doesn’t always happen, as a matter of fact I find it seldom happens however the market gods are a generous bunch and they seem to present many opportunities all the time if we are willing to look for said opportunities. In this case we got another shot at our original trade and in the write up this week we will discuss how that came about, it was the perfect storm of conditions that brought us luck. After we discuss the conditions that brought us such fortune, we will do a video and look at the trade as it stands and what it means or what decisions we might have to make on this trade.

So, why did we get a second chance? Well, if we first look at the chart of CROX we could see that when we originally wanted to put the trade on the stock was closer to the upper band of the channel and sometimes this leads to a pullback and this alone can give us another shot to enter a diagonal type trade. This was not the only good fortune we had last week. The overall markets had a nice little mini pullback or you could call it a pause from the push skyward and this brought our ticker symbol into line for another shot at the title. Check out the chart below. It is the SPX and you can see the little pullback I was referring to. You can see that the pullback was very shallow and leveled out right at the 20MA before resuming the upward push which turned out to be of great assistance to our trade.

The chart below is our ticker and you can see that it pulled back in a similar fashion to the overall market and this was fortuitous for us. So take a look at the short video below and we will discuss the what if’s of the trade where it stands right now.

We got a second chance to enter this trade and we are currently making the most of it. We will continue to manage this trade and discuss all the cool ways a diagonal can be played over the weeks ahead.

Trade Well and Be Kind,

Coach “Old Money” Holmes