To make a change from posting so many NASDAQ tech stocks, here are a couple of old school financial ones traded on the NYSE. First off, WFC:
All fairly standard stuff here. There was a little hesitation at the previous day’s low, but nothing too much to worry about. I was out on the bounce. There was a bit more to be had, but that would have seen us in gambling territory and I would have had to knock a point off my execution score, which as we know is more important than profit.
Next up, MS:
This was an even better setup, and the fall when it came was precipitous. Again, the exit came when momentum ran out and there was a bounce.
Here’s your periodic reminder that the trades I post to this blog are not the only trades I have taken in a given day. I post things I think are interesting for one reason or another. Today’s trades were picked for two reasons. Firstly, because I’m aware I’ve been posting a lot of tech stocks recently. It’s true there are some excellent gains to be had on those tech darlings, and it’s also true that my core stock list is heavily weighted in that direction. But it’s also good to remember there’s a whole world of other stocks out there to trade.
The second reason I posted these two is that both were finance stocks. They were no doubt influenced by the news coming out of Charles Schwab. Keeping an eye on sectors as a whole can be a good way of finding new opportunities. That can be done by watching sector indices, or if you are lazy like me, it can be as simple as noticing that quite a few finance stocks are tanking so it might be worth checking out some others. Okay, that’s a bit simplistic. The thing is, no stock is an island. I know some readers of this blog sometimes struggle to find good trades from time to time; looking at sectors can be a way to expand our watchlist on slower days.