The equity markets are continuing to push for new all-time highs, which is translating into some great trades for us. If you’re not a member of my service, you’re probably missing out on this movement. Most recently, I alerted Roku (ROKU) for a swing trade, which ended up being worth about 8% in total profits. Short sellers are getting squeezed as this thing nears current highs. I think ROKU could ride off the back of its Q3 earnings results and build momentum into year-end. I’m already out of this position for now, and I don’t think it’s a good idea to step in front of a moving train.

ROKU swing trade highlight

Take a look at one of the emails I sent to my subscribers:

ROKU played out almost exactly as I expected it to. However, it didn’t quite reach one of my price targets just over $50, but it’s good practice to take profits. I started to scoop up shares at $43.81, and alerted members of my position in real time.

Here’s the email I sent out upon entering the trade:

ROKU buy email

We’re fully-transparent here. I never hesitate to let subscribers know exactly when I enter and exit a position.

Here is a quick look at the chart that I was watching right before I started buying ROKU.

ROKU chart

ROKU opened and made a low below its 20-day moving average. Thereafter, it caught a nice bounce and formed a bullish engulfing candle. This is a battle-tested strategy, and I let the members know where I was looking to stop out. If you are able to map out your stop and target prices at the beginning of a trade, then you can better manage and size your positions accordingly.

When I was long ROKU, it never pulled back to my stop price and I ended up selling half of my position for 6% profit.

Here’s the sell alert that went out to all of my members

ROKU sell email

That’s a nice gain for a short swing trade. I sold the rest for a +10% gain.

Petrapicks ROKU sell email

It’s that simple. You could have followed me into this trade, set your stop and limit orders and let the thing ride. This is a great way to trade if you’re leading a busy life and don’t have time to sit at your screen all day and monitor option positions.

ROKU doesn’t look like a short yet

Now, there are some short sellers out there who think ROKU could fall below $30. ROKU reported strong Q3 earnings results, and showed growth in its user base/revenue per user. That in mind, I think it could continue higher. ROKU is nearly 10% off of its highs, and it looks like it could trend higher. Although I’m out of the trade for a nice gain in just a few days, I’m still watching ROKU for a possible round two. If it pulls back, I’ll look for a spot to get long again. For now, I’m going to remain patient and look for some other stocks to trade.


   Petra Hess runs She is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs.

Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of and the Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

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