Financial Advisors

Trade Ideas | April 2021: Transactions and Rotations

The Trade Ideas April 2021 report below comprises:

  • The Trade Ideas Trade of the Week for each week in April.
  • A summary showing the number of times that HOLLY traded in the industry and what was the profit or loss associated with those trades.
  • About Trade Ideas.

Trade of the Week for April

Week 1

Regions Financial Corp (RF)  We made trade selection using components of the Regional Bank ETFs. Although there are many good looking candidates in that sector, Regions Financial Corp (RF) has the best chart and some solid fundamental data too. The stock closed on Friday back above all the key moving averages with a balance sheet stronger than many other banks out there.

Week 2

Taseko Mines (TGB) Stocks under 5 dollars are prone to higher percentage moves over a short period of time. Normally we do not focus on these, but for some reason, this week we cannot ignore it. Taseko Mines has been on our radar for some time now and the timing looks to be absolutely perfect for TGB to be the Trade of the Week. A beautiful wedge break and retest of that area.

Week 3

Cisco Systems (CSCO) The smaller and mid-cap companies have not been participating in the recent rallies we see in the major indexes. For this reason we are going to focus only on a large cap name right now.  As a sector, the networking names seem to be setting up well for this week. Cisco Systems (CSCO) is one of the biggest names in that sector and the chart looks like it is breaking out of a tight range.

Week 4

Velodyne Lidar, Inc (VLDR) This week we are looking for a basing pattern again rather than a continuation pattern like last week. Velodyne Lidar, Inc (VLDR) is a relatively new issue and is showing strong signs of basing here under 15 dollars. We will go over the finer details of the basing pattern on our Tuesday evening webinar so please join us then. The declining 50-day simple moving average in blue is the one last hurdle for VLDR to clear. If VLDR can post a few closing days above the 50-sma this week, the chances for a move higher increase tremendously.

HOLLY

Trade Ideas’ Machine Learning AI:

HOLLY, April 2021 Overall Performance­

Over the course of April 2021 HOLLY strategized a total of 156 trades down from 218 in March. Overall performance was an increase of 7.1%, compared to the SPY at 4.8%. Overall, HOLLY’s performance in a high volatility and event driven environment continues to fall within acceptable trading scenarios as described below.

HOLLY

The table below details the Top 5 and Bottom 5 Sectors and the performance in each. The full risk profit is the profit per share of the trade using no stops and holding until just before the market close. Enterprise licensees and subscribers recognize that their hold times vary beyond end of day according to their risk management preferences. The total performance of HOLLY AI for April was 7.1%.

HOLLY Performance by Sector for April 2021

Top 5 Sectors by Performance
Bottom 5 Sectors by Performance

Conclusion

Portfolio Managers and Traders who avail themselves of HOLLY gain the ability to increase performance and mitigate risk. HOLLY has no emotional response to market conditions. As has been true since HOLLY’s inception, April 2021 proved out this principle of HOLLY’s effectiveness.

About Trade Ideas

Trade Ideas is an artificial intelligence decision tool that enables portfolio managers and traders to make better decisions in the stock market.

Trade Ideas identifies opportunities to capture alpha before others and in sectors and places within the market where no one else is looking.

Overnight, Trade Ideas artificial intelligence capability, HOLLY, runs massive structured and unstructured data (market activity, news, social media, etc.) on all US equities across some 40 different trading strategies, each of which has multiple algorithms, effectively taking into account tens of millions of simulated trades.

The result is the reporting each trading day of 5-7 trading scenarios which may outperform the market. Risk guardrails are set against each strategy, so traders are alert when up or down limits are reached intraday.

Additionally, each week Trade Ideas publishes it’s free Trade of the Week. Visit the website to sign up.

https://www.trade-ideas.com

https://pro.trade-ideas.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

David Aferiat

David brings more than 15 years of experience in trading, consulting, software, utilities, capital markets, and consumer product industries. Working with senior officers and key decision makers in the boardroom, finance, HR, marketing and trading functions, he has advised both public and privately held companies with revenues ranging from $20 million to $14 billion. Work at Trade-Ideas taps experience in business development, customer acquisition and retention, corporate strategy as well as energy trading and marketing. David holds dual Bachelor of Arts degrees in Economics and French from the University of Texas at Austin and a Masters of Business Administration degree from the Cox School of Business at Southern Methodist University.

In seven years Trade Ideas has grown to over 50,000 accounts in 19 different countries. Hedge funds, Asset Managers, Institutions, Online Brokers, and direct access traders use the software as a premier idea generation, risk management, and decision support tool.

Read David's Bio