Try this entry on Okta ($OKTA). (August 06, 2019)


I want to look at Okta ( NASDAQ: OKTA ) today; here’s why: Because I was looking at it yesterday. The stock had been trading above the 50-day moving average, just kind of drifting sideways. Frankly, a better scenario for this stock would have been if it just kind of kept trading sideways, allowed the 50-day moving average to catch up to it and then in a week or two exploded higher, yippee. That didn’t happen, instead, the stock fell down here, but held at the 50-day moving average and you look at the volume.

A lot of stocks were being sold yesterday, most were except the inverse ETFs. This fell on greater than average volume, which is not a good sign. But here, today, the stock regained the 50-day moving average and ran up to a new high. It printed a higher intraday low and a higher intraday high and actually closed kind of close to the top of the range. You can see how the stock traded into the close so it was pretty strong all day. It was down a little bit after hours but I don’t care about that. The stock was moving higher into the close, that’s a good thing.

The fact that the stock has pulled back above the 50-day moving average gives you an opportunity to buy this stock. Now, in this kind of environment, I think you have got to be eager to take profits a little bit earlier than you might normally do so and you should be trading smaller, there’s no question about it, I am. If you are just out there on the wild frontier, good luck to you and God help you. You need to be trading within yourself.

The stock is up here at, say 130.00. If we look at yesterday’s intraday low of 124.33, if you are buying right here your risk is essentially 4.5 percent or so, if you want to give the stock all the way down to yesterday’s intraday low. What I would suggest doing is going a little bit tighter even. You look at where the stock traded today, the low is 127.36, I think in this kind of market you have got to be real skittish. This gives you like a 2 percent risk.

So if you are buying this stock and you set your stop below today’s intraday low you look for maybe $4.00, maybe $5.00 on the trade. Hopefully, it just keeps moving up. But what I am saying is you are risking like 2 percent and what you are looking for is a multiple of that on the reward side, so frankly, up to 135.00, that would be a pretty good target.

I just thought I would give you this trade. It’s a very dicey market; the best trade that I have going on is NUGT ( NYSEARCA: NUGT ), it’s doing really, really well. One stock that I bought today and still hold a half position in is Shake Shack ( NYSE: SHAK ). That was an active stock in the forum today, a lot of traders are in that stock and still going strong. I sold half into the close, hanging onto the other half, we’ll see what happens.

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