Hello, Barrie Einarson here from Trade Ideas with today’s edition of “What Makes This Trade Great.” Let’s dive into LNC.To Subscribe: https://go.trade-ideas.com/SHQ
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This one popped up from our AI as a short. Now, considering the market’s performance yesterday and today, there are undoubtedly plenty of short opportunities. It’s tempting to think everything is shortable, but in reality, it doesn’t always play out that way. Sometimes a stock appears to be trending downward, only to spike and take you out of the trade. However, LNC didn’t follow this pattern.

LNC presented a short opportunity at $31.08, identified by our AI. Without any significant pullback, it dropped to $29.20, offering a fantastic percentage gain. Now, we’re observing some upward movement, which brings us to the broader market overview.

Let’s take a look at the SPY chart. This is the “go no go” chart, where we’re witnessing a transition from deep purple, indicative of strong short signals, to pink, hinting at a potential shift. If this pink transitions to blue, we might see some optimism return. On a 15-minute chart, this trend is evident, and it’s mirrored in LNC’s behavior, which is now moving higher.

If I were holding LNC at this point, I’d consider following the market cues and perhaps taking some profits off the table. While there’s potential for further decline, the prudent move now is to secure gains and watch how the market evolves.

That’s it for today. Have a great weekend, everyone! We’ll reconvene on Monday morning to see if the market continues its sell-off. Check out my Homepage for more information.

Stay tuned and trade smart, Barrie Einarson