Vista Land and Lifescapes, Inc. is up by more or less 36% year to date (YTD) from the 2018 year-end closing price of 5.41 to the current price of 7.37 as of the time of writing this report. If I will consider the YTD high of 8.00, which was registered last Friday, I would say that VLL’s price surged by up to 48% YTD.
When Did I See My Confirmed Buy Signal?
My buy signal appeared last December 18, 2018. That was the day when the price moved above the 10SMA and the MACD crossed above the signal line.
Would you like to know why I didn’t consider entering a new position as early as November 2018?
I didn’t enter a new position last November 2018 because while MACD was moving above the signal line during that period, the MACD was already moving above the signal line before the price moved above the 10SMA.
Here’s my rule for a potential buy signal: the price must move above the 10SMA and the MACD must cross above the signal line within the SAME DAY. Yes, it should happen within the same day and not in separate days.
Last January 22, 2019, the MACD crossed below the signal line. I did not consider that as a sell signal. As soon as I get my buy signal and see confirmations of that buy signal, my sell signal is no longer dependent on the appearance of a death cross in any indicator that uses moving averages.
My sell signal is simple. It’s either I sell some shares or all shares when the price hits my trailing stop loss. That’s all.
Every time VLL registers a price higher than my entry price, I do an upward adjustment on my trailing stop loss.
If I applied 10% risk in my trade setup for VLL, you can tell that I have not been stopped out yet on this trade until today.
Why?
When VLL hit an intraday high of 8.00 last Friday, my trailing stop loss (10% risk is applied) was at 7.20. It is only today that VLL plunged by more than 10%. Because VLL has never gone down by more than 10% since December 12, 2018 but today.
You can do the arithmetic for the percentage of net profits.
Price-Volume Distribution
VWAP: 7.5307
Most Traded Prices: 7.4, 8, 7.5, 7, 7.39
Most Voluminous Prices: 7.5, 7.4, 8, 7.87, 6.8
Top 10 Players
Trading participants of VLL with a 100% Buying and Selling Activity as of Feb-18-2019 at 02:01PM:
14 out of 70 participants or 20.00% of all participants registered a 100% BUYING activity
14 out of 70 participants or 20.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 7.5103
Top 10 Players’ Selling Average: 7.6394
What’s the Probability of VLL Going Back to 8 Per Share?
If this issue maintains its position above the mid-term support at 7.00 per share, with a volume that’s above its 10-day volume average, there might be a chance for it to re-test its historical resistance at 8.60.
It is also noteworthy to mention that foreign investors are net sellers on VLL for 2019 YTD.
I already consider VLL as an extremely high-risk stock given its historical volatility of 152%.
What Should You Do If You Have a Position on VLL?
Follow your trailing stop loss.
If your answer to that recommendation is, “What is a trailing stop loss?,” I’m afraid you’re in trouble.
Don’t just be an expert in identifying your buy signals. Know where you should exit even before you enter.
Wha Should You Do If You Are Just About to Enter a Position on VLL?
Trade stocks with a risk level that matches your risk tolerance.
Are you a beginner?
Then, don’t trade high-risk stocks. Stick with low- to moderate-risk stocks.
For me, high-risk stocks are issues with a historical volatility that’s above 70%.
Stocks with a high historical volatility have a weak market depth.
Stocks with a weak market depth are subject to erratic price fluctuations.
Do You Need My Help?
If you like the simplicity and profitability of my trade setups, if you like my style, if you like my discipline, if you like my serious and formal tone, if you love what you’ve read on our testimonials, you are welcome to subscribe to EquiPicks.
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