Well my friends, it didn’t take me long to make a boneheaded move, on the very first day trading day of the new year. I went long MON. It looks great. A sector I love, and have made some mad coin playing (agriculture). Nice pullback to support. Nice volume pattern showing accumulation. Entry not too far from the 20 day moving average. The stock ends up only slightly down on a horrible day for the indexes, and up about a dollar from my entry. What’s not to love?
I forgot to check the earnings schedule for the stock. Of course, as reader Tom pointed out, MON reports tomorrow morning. WTF??? How could I have missed that? I’m getting sloppy. Inexcusable mistake. As many of you know, I love to play earnings, but only post breakout. I never like to hold a stock going into earnings.
Even if the stock knocks the socks off the street, this will go down in my journal as a bad trade. I had absolutely no edge going into earnings, and set myself up for failure. Words cannot express how mad I am at myself.
I will probably place a stop before the earnings report just under today’s low. If I’m feeling a bit more risky, i’ll place it under the 20 day moving average.