US Stocks Recently Added To My Trade Watchlist

These are stocks recently added to my watchlist. They include CTVA, SE, DCPH, AYX, and AVLR.

A trade may not happen for several reasons:

  • Trade is about finding the best opportunities. If there are five good looking trades, I am going to pick the 1 that looks the best. This way, I am not using up my capital on mediocre trades.
  • The trade may not trigger. For example, I want it to break above a consolidation to enter me into a trade and instead it starts dropping. This is very common.
  • The trade may have the potential for a setup, but it may take a couple more weeks of price action to see. In this case, I literally am just watching it to see if it forms a setup that meets my strategy requirements.
  • If the trade hasn’t triggered, the company’s earnings may get closer and closer. I don’t like taking swing trades right before earnings. I want to give the trade enough time (estimated) to reach my target before earnings are released.
  • Upon closer inspection, I don’t like the trade. The favorable reward/risk may not be there, there may be lots of gaps on the chart (exposes me to additional risk and slippage on stop losses), or maybe I find the stock is highly driven based on anticipation (like a pharma company awaiting FDA approval) and therefore could be susceptible to a massive over-night decline if things don’t turn out.

These are stocks that got added to my watchlist this week.

Based on the above, that doesn’t mean I will trade these, but they are in interesting positions.

Corteva (CTVA) is forming a potential setup. I like the chart, but ideally, I want to see the price action contract and consolidate between $33 and $32 (approx.), and the longer it does that the better. I would then want to see the price break above the top of that consolidation. Patterns like this can be very powerful in newly listed stocks, but for me, I need the above conditions to occur before I get involved.

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Disclosure: The author doesn’t have positions in these stocks currently, but may initiate positions if the stock prices slide a bit lower. None of the content in this article should be ...

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