F Trade on Mar 4, 2021 14:21 from tjmiller2001: Tradervue User Stock Trades.

F is a strong name that I wanted to buy on a pullback. It recently hit a 3 year high 2 days before my entry and it was pulling back simply due to market weakness. My thesis was that this name would do well when volatility subsided/the SPY selloff ended.

Original plan was to get long EOD. Then I realized that a better entry would be to wait for a higher low on the 1m chart. Got long with a 4:1 RR. It's better to size up on this than IEP, but I didn't want to get too large in this position because the market selloff is still going on and I'd like to see some SPY consolidation before I get comfortable with a large long position.

++03/08 Exit

My price target was 12.66 and it broke that today and went all the way to 12.88. I liked the strength and didn't want to sell too early. I watched the 12.60 level hold as support, then gail as support then back above that level. My plan was to get out if it couldn't hold it again. F was showing relative strength but SPY weakness has been able to pull a lot of strong names down with it, so I was looking to cut it and get back in at a better price.

I took my profits and once 12.57 held, it was clear that F just put in a higher low on the 1m chart. So I tried to get back in with a 3:1 RR momentum lot. However I was skiing in Big Bear California at the time, trying to get filled on my phone in the mountains. Couldn't get a fill and this name shot back up without me.

I will likely look to buy the dips on this name while SPY is weak. That could be broadened to another strategy like this: Look at the names that are making 52 week highs but are large companies that tend to show intraday correlation with SPY. When SPY is weak, look to buy the dips on these market leaders with the thesis that, "When market strength comes back, these names are most likely to benefit from that quickly with a drastic upmove."

Lesson Learned: If you are long a name will relative strength, sell at a lower low and add a momentum lot at a higher low. Be careful selling into market weakness because if the uptrend is still intact, your size should still be on. Also, size up on your best ideas, this trade warranted more than a $130 contract.