 Good afternoon everyone and welcome. This is Melissa Armel and I thought I would do a little lecture here on buying at the low, selling at the high and shorting at the high and selling at the low. This is a topic we've discussed now and then in the trading room and the biggest issue is that traders are constantly, constantly, constantly wanting to do that. In theory it makes sense. I'm just going to look at, actually, let's look at the market. In theory it makes sense because obviously if you buy a stock or let's go here, we'll look at the market. If you bought the market, I'm just going to throw a number out here at $256 last week, today's Tuesday, so this was Friday's bar right in here. You bought at $256, the market today is what? It's almost a $266. You would have had a 10-point move. So you would have bought at a place lower than where you would have sold today, if you would have sold today. But how do you know to have bought at $256? Well, people will say, well the 200-peer moving average, not all times does anything hold the 200-peer moving average. Anyways, getting back to what I was saying about looking for targets and profits and buying at the low and selling at the high in reference to buying, which we'll go back to CMG and talk about this short in a minute. It sounds, in theory, correct and that's how you're going to make money. Yes, that's true. But you've got to get the correct entry because sometimes you'll buy into something at one price, then the stock will rally and you don't get out because you really didn't take a good entry because it really doesn't have a target. Now I just threw that number out. I said $266 today because we happen to be trading right there. But the fact is there was no way to predict that we'd go to $266 in the spy here if you bought at $256. The market didn't have any target. What was the target? If you bought on Friday at $256, what was the target? Because there really wasn't any. Why? Because what's the strategy? What's the setup? Why are you doing it? Why would you have even bought the market? You say, well Melissa, I bought support. All right, well there was a support back here in the 50-peer moving average, which the market didn't hold. There was a support here in the 20-peer moving average the market didn't hold. There was a support here on the eight-peer moving average the market didn't hold. So how did you know this support was going to hold? And we still don't even know if it's going to hold. It's holding temporarily Friday through today, Tuesday afternoon. We're not going to break that load today. That's true. But the point is when you have a strategy that you follow and a good entry for the trade, you're going to have a target. The target's going to be clear. Now let's just say this market sets up where you could actually take a long entry buy back in, which it hasn't set up yet by the way. But if it had an entry to set up, I would use my system. My ratings isn't determined that it was a good day to buy. And there would be a target that would be readily available for you to see you get to. To know to get out several targets, by the way. And that's the problem that most traders have. They're afraid that if they don't buy at the very lowest point and sell at the high, they're not going to make money. But that's impossible. Your goal as a trader should not be to buy at the low and sell at the high. You're never going to be able to consistently do that. You want to buy at a price lower than where you sell at a price. Yes, that's true. But wouldn't you rather be up money right of ways, going into the move, into the target with momentum rather than take it, buy in, be up, then be down before you're up again. Or take it, buy, and then be down before even up again. Now, this move from Friday has held, but I would not call this a stronghold. I gotta be honest with you. This is a weakhold to me. I can't predict where the market's going to go now Wednesday, Thursday, Friday. Three more days left of the week. It's a lot of time for the market to trade. I wouldn't be surprised that we fall again and drop again into this tail, which by the way, if that happens, would not be good. You do not want to see the market come back down here in this tail area. If it does, it's going to for sure break it. That hasn't happened yet. It may not happen, but I'm reading this here as a weakhold. Holding, yes. Long term trend of the market's bullish. But getting back to what I was saying, the lesson here today for people is know why you're getting in a trade and just buying support isn't good enough because you don't know for sure if the support will hold. You have to determine when you're entering a trade where your target is for your exit. Conceptually, it sounds good to say buy low sell high. Well, that's how you're going to make money going long or sell high buy low if you're shorting. But either way, what I'm saying is you may get whips all around, be down, up, up, down, and you may not know where to get out. And why? Because if there's no reason for you to take the trade that tells you exactly where the target is, then you're going to have a difficult time just determining where to exit. So there been no way to say 266 would have been an exit or a target on this if you bought the Friday's area. In fact, the next target on this, the only one that you could possibly even say would be the previous high, which is all the way up here at 286. Could the market go back to there? Yes. But the stock, the market, this ETF, what I'm looking at now, this chart, it has to set up for that to happen. So when it sets up, which it hasn't yet, but when it does, then the target will be that 286. But it hasn't set up yet. It hasn't set up yet to go back in long yet. And again, I'm talking about as a trader swing trader, overnight trader here, you know, if you're a long term investor, you can you can buy wherever you want, you're holding through the dips. If you're okay with that, I think it's really important to know your time horizon. Also, when you're taking trades, what type of trader or investor are you with the time horizon? But let's look at CMG really quickly here, because same concept, and as those of you know that I like to look at shorts, but same concept here, where you would short at the higher level. You shorted it to here this day, which I did call put in the system and it dropped down. This had a real target. This had a real target. In fact, the target was 270 initially on that day, which it got to fell through, broken here low was 268 I called the 270 put puts that worked worked very well. And it continued to drop off. So again, this is something you can look at and say, Oh, here's the strategy, the stock gap. Now that it's gaping, I can determine the targets for the day and in the long term. And that's how I'm going to determine where I'm getting in and where I'm getting out. And also, what type of watchman you're going to do one out for a few weeks or out for a few months and then also what strike, because obviously, if you get a lower strike, you need to take it out a little bit longer. But the chart overall and CMG definitely, definitely looks lower. So if you took this, for example, here today, you can say, I'm getting in it. Is it setting up? Yes, the stock actually did gap down today. CMG did actually gap down today. And it looks like it's falling again, you've got to have a strategy and you got to have the entry. And that's how you come up with a target. I think the problem is a lot of people can't find targets right, because they don't have the first couple of things, which is the entry right and the strategy. And again, here, you're looking at this, you know, not everybody's going to get the best price in the world. And this is a short, unless you had got it last week on the day that I called the put and CMG of the day trade, that was a great price to get that on the seventh. But even still, this is really lower. I mean, this is lower. So I don't know where this goes exactly today, tomorrow, how we close today, an hours of the couple of minutes left in trading. But overall, CMG is lower. And just remember, when you're looking at targets, you're not going to be able to figure them out right if you don't have a strategy. And if you don't have the entry right, so long term targets on this really 230 to 20 to 20. I mean, this could even go lower than that 230 to 20, some really nice targets on CMG. And we'll have to see how fast it takes for it to drop to break through the low here from just even the other day. But do you see here how the markets rally for the last two days and how weak this stock is, it's red, red, red, red, red. That was a horrible gap for this chart. The stock is lower. I said that the day would have been nice if this would have worked out as a day trade. This this bar would have been this bar took a while to break you a day traders trying to buy it in here in this previous support. What a dumb thing to do. I don't look at things like that. I look at things like an institution, what are funds doing with their money? Are they buying the stock? Are they selling the stock? Are they shorting the stock? Are they dumping it? Or are they lifting it up and buying it and just flipping really quickly back in here to the overall market? That's what doesn't make me jump up and down about this yet. I do think the market's strong, the bullish uptrends holding yes. But I'm not jumping up and down about anybody getting back into the market thinking we're going to get to the high anytime soon because nothing set up in here yet. And I don't see institutions buying back in this yet. And they've sold some out here in the last week. And you can't you got to be aware of that. So if you had institutions just selling in the last week, they're not going to turn around and buy it again right away is looking like this, they might they could it could happen. It could have happened this week. It might have. I want to see something looking much, much different than this. So wait until the market sets up. Wait for your setup to happen. You've got to have a strategy to trade. You got to have the entry and that's going to help you pick the target so you get good exits and so you don't get in trades where you're down before you're up. In an ideal world, you get in trades, you're up and you're up, up, up, up, up and you get out and you get out with a profit. Good luck, everyone. And I will see you this week. We're going to see what we get the rest of the week in the Stock Swish Trading Room. Email me at Melissa, thestockswish.com if you have any more questions.