I "spy" an opportunity…

After a historic bull market, it wasn’t liquidity crisis from Fed actions but an outlier from a virus which has brought uncertainty to the markets and ultimately opportunity for those with resolve to execute.

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Successful Plan

The plan exited at one of the 3 reward stages. Note returns and percentages are calculated based on the levels executed only.

As all viruses follow a bell curve, the first wave represents the emotional impact on the markets while the following waves draw out the economic impact around the slow down.  The initial drop has given us enormous swings but more is likely in store over the next few months as we will see 1 to 2 quarters of contraction. With central banks coordinating their approach, we should see each level defended and certain sectors go through patterns of rebooting over the next 4-6 months.




  Price Shares Cost Returns R/R
Green Channel
Buy $220.15
$4,843.30  
Reward $273.05 $6,007.10 $1,163.80
Risk $205.50 $4,521.00 ($322.30)
Cancel $298.10    
 
Red Channel
Buy $205.50
$2,466.00  
Reward $255.70 $3,068.40 $602.40
Risk $169.75 $2,037.00 ($429.00)
Even $214.98      
 
1st Trade exit @ reward target $782.10  
Total Reward from all applicable channels $1,384.50  
Total Risk from all applicable channels ($1,537.80)  
 
Blue Channel
Buy $169.75
$2,376.50  
Reward $233.50 $3,269.00 $892.50
Risk $120.00 $1,680.00 ($696.50)
Even $201.79      
 
1st Trade exit @ reward target $293.70  
2nd Trade exit @ reward target $336.00  
Total Reward from all applicable channels $1,522.20  
Total Risk from all applicable channels ($3,925.80)  
Green Channel

3.61:1
reward : risk
level reached 60.42%
Red Channel

1.40:1
reward : risk
level reached 38.16%
Blue Channel

1.28:1
reward : risk
level reached 20.14%

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