Check out how our trade on US Foods (USFD) worked today…and look at a few candidates for tomorrow. (July 31, 2018)


I want to talk about USFD ( NYSE: USFD ). This is a stock that I mentioned yesterday and then we looked at it this morning. A lot of people in the forum made some trades on this along with me. It wasn’t a huge trade, the stock is only up 30 cents. However, the volatility was meaningful, we’ll say productive. It was up almost 5 percent in the intraday trading.

Let’s just take a look at this and see how this worked. You can see this stock as of yesterday, it was just begging for an oversold bounce. This was yesterday’s trading on the 30th. You can see how, right at the close, into the close, the stock had been trading down. And then with 5-minutes left, a little short covering. You will see this all the time.

One of the things that I do is I look for stocks with certain characteristics right at the last half hour of the day to find these kinds of opportunities where the stocks look like they are going to rebound into the next day. If I can I will buy a little bit to carry it overnight. I don’t do that all the time but it is an option because then you get in the next morning, you wake up and you would be amazed at the number of times where you say, “Oh my gosh! I made money while I was brushing my teeth.”

That is really what we did today. The bottom line on US Foods ( NYSE: USFD ) is, the stock opened up (this is a 5-minute chart), the stock opened up and then ultimately moved higher. I made about 50 cents on the trade; it was actually pretty liquid.

The idea is, that once the stock opens, gyrates around for a few minutes, you want to look and see where the low was and that was at 32.91, which was really good for me because I had put my stop here down at 32.90; I swear I did. And then I went on to other things. I was actually surprised when I looked to see the price action, that I hadn’t been stopped out. And you know what? Not being stopped out by a penny beats the snot out of being stopped out by a penny only to have the stock go away from you.

Free Chart

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