[Platinum Watchlist] (5.2.23)

Good morning.  

Markets are down this morning as traders are anticipating a 25-bps hike in the Fed rate tomorrow.   

There are three stocks in the paper trade portfolio at this time including EW, HON and VTR. Analysis can be reviewed in the above post.   

SJM from the Horizons Stock list had a substantial positive move in price action yesterday as it wicked up to resistance. 

Unfortunately, the closing price is now very close to the resistance level of 158.01 leaving the stock with limited upside gain potential. It would be prudent to wait for price action pullback prior to entering a position in SJM at this point in order to increase the probability of more upside potential. The other option is to just wait for a better set-up from another stock.  

The markets are still range-bound which is provides a more difficult potential for swing trading successes. The FOMC rate announcements are a lot like earnings reports for companies. We know in advance of when they are going to happen, however we can’t predict the fallout from the results. 

So, today I am going to manage the existing portfolio to reduce potential losses and defend gains.   

Have a great day and thanks for being a member of the Platinum Channel!  

This information is for educational purposes only and is not a recommendation to buy or sell a security.