Exits, 3/23/2024
How we did on the trades we exited this week.
Dids/Pexels
This Week’s Trade Exits
As soon as I exit a trade, I note that in the comments of the post where I first mentioned the trade; at the end of the week, I try to track them all in one post. These are the trades I exited this week:
Stocks or Exchange Traded Products
Mercado Libre (MELI 0.00%↑). Bought at $1,266.66 on 1/27/2023; stopped out at $1,565 on 3/22/2023. Profit: 24%.
Options Trades
None
Comments
Stocks or Exchange Traded Products
Our core strategy of buying the Portfolio Armor web app’s top ten names, putting trailing stops on them, and replacing each name as it gets stopped out with a new top name, continues to perform well. The most recent 6-month return we have for one of our top names cohorts is for this one, from September 21st of last year. Our top ten names were up 51.45%, on average, versus up 21.54% for SPY 0.00%↑.
Options
No exits this week, but the three stocks we placed pre-earnings trades on this week all went against us. Maybe one or two will move back in our direction before expiration, but this was disappointing. We may lean toward more post-earnings trades next quarter, such as the one we placed on Lululemon (LULU 0.00%↑) yesterday.
Trade Alert: A Post-Earnings Opportunity
Punished After A Double-Beat Shares of Lululemon Athletica () are down about 15% intraday as I type this, after the company beat on both top and bottom lines after the close yesterday. Ostensibly, the stock’s down because the company released weaker-than-expected guidance for the year, but one of the top retail analysts I follow, Jeff Mackey, feels that the market is overreacting here.
I got wrecked on SCVL, GES & CTRN 🤕