Ichimoku Stock Trade of the Week: EWW Mexico ETF 6-25-2012

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  • Ichimoku Stock Trade of the Week: EWW Mexico ETF 6-25-2012

On 6/25/2012, we received a 4 timeframe buy Email Alert on EWW, Mexico ETF. The email alert is shown below.

Here is the trade setup for a Bullish Entry. The entry was at 59.47 with a initial stop of 56.50 and a PRESERVE mode value at 61.68. This would give us a reward of 2.21 and a initial risk of 2.97. This is not a good reward/risk but we are willing to put the trade on and evaluate the true reward/risk once we enter the trade.

When the trade entered, the stop was moved to $57.66. This is now a risk of 1.81. The min. reward to our PRESERVE mode value is 2.21. This would give us a reward/risk of 122%. Since the reward/risk is over 100%, we stayed in the trade.

Today, price hit our PRESERVE MODE value so we are not going to tighten our stop. The current stop right now is 60.63.

With the current stop, we are now in a FREE TRADE. FREE trade is when our stop is above our entry for a bullish Trade. As the trend moves up, we will lock in more and more profit.

PLEASE NOTE: To reduce the risk and not allocate much capital, you can use OPTIONS in order to trade this opportunity. The best option strategy would to purchase a Call option for Sept 2012 with the strike price of 60. The cost is $1.65/contract. Therefore, it would cost you $165 to control 100 shares. Today, these options are worth 3.65/contract. This is a $2/contract 221% gain in 1 week.

To learn more about Ichimoku, Options, or the Email alerts, please go to www.ichimokutrade.com

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