A Trade A Day: Nordstrom (JWN)
Michael Nauss CMT | StatsEdgeTrading
Market Overview
I've noticed a potential rotation in the market in the S&P 500 (SPY) vs. Equal Weight Index (RSP). While SPY, which is cap-weighted, has pulled back slightly, RSP (the equal weight index) is holding up well. This indicates that smaller names are supporting the market even as large-cap stocks sell off.
Sector Focus
Retail Sector (XRT) The retail ETF (XRT) showed strong performance today despite GameStop's ongoing decline. This sector could present opportunities for stock pickers.
Trade Idea: Nordstrom (JWN)
Setup:
Short Float: 16%
Key Level: $22/share
Indicators: 50-day moving average
Plan:
Entry: Above $20/share
Stop Loss: Below the low of the current candle or the 50-day moving average
Target: Potential push towards $30/share
Nordstrom has appeared on my scan due to its significant short float. The stock is consolidating below the 50-day moving average, which many traders respect as a key level. I'm looking for a breakout above $22 to enter the trade.
Process:
Identify the sector (Retail - XRT).
Find stocks within the sector (Nordstrom - JWN).
Plan the trade (Entry, Stop Loss, Target).
Set alerts and orders.
Let the market decide.
🙏🏼Thanks for sharing!