The S&P 500 steadied on Friday, up 0.3% after Thursday's 4.4% drop, and the Nasdaq 100 bounced 1.4%. Cricut, the craft cutting-machine maker, jumped 49% on Wednesday after its results, and I would rather buy it a little lower, so our order only fills on Monday if the stock gives some of that back.
CRCT just had an unusually strong up-week. Monday's free trade is a buy limit at $8.52, with the stop and exit written out below.
What caught my eye on Friday
For the people comparing this to the.com bubble if it is, you can see by the chart we have a long way to go.
Monday's free trade: CRCT
Buy limit $8.52, day order
Target: sell limit $9.75, good till cancelled
Stop: after a close beneath $7.04, sell at the next open
Time exit: sell at the open Mon Nov 16
The stop is not an order you place. The system re-sets it each night, and members get each new level. If the stop or the time exit comes first, cancel the target before you sell, so two sells can't both fill.
How Surge Pullback works
A stock just posted an unusually powerful up-week while its longer trend is still early. We don't chase: we rest one buy limit near the average price paid since the stock's most recent low and let the normal pullback come to us. A profit target, a five-session clock or a protective stop on a close hands the shares back, whichever comes first.
One thing worth knowing
How much cash do the day trades need? In our 26-year test they used about 15% of the account on a typical day. Only one day in a hundred needed more than the whole account, and the busiest day, in January 2021, needed twice it.
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Below the line: 7 more swing trades and 51 day-trade setups for Monday, with the exact entry, stop and exit for each, plus the stops and exits on our 17 open positions.