Johnson and Johnson

[dmedin]

https://uk.finance.yahoo.com/news/johnson-johnsons-greed-helped-fuel-u-opioid-crisis-005725753--finance.html

Lawsuit against J&J over the opioid crisis.  Nearly 50,000 overdose-related deaths in America in 2017 alone.  Article compares potential outcome to the settlement made with tobacco companies (>$200 bln)

Might be a good one to short.  Almost feel ghoulish profiting from things like this.

Edited May 29, 2019 by dmedin

[dmedin]

Edited May 31, 2019 by dmedin

[dmedin]

Looks like it was just a minor blip. 😱

[dmedin]

I'm still watching it.  It looks pretty good except that it is moving back up with little volume behind it.  Let's see if it can surprise its strong resistance line and if not maybe it could still be a good short 🙈

[dmedin]

Here's a good example of why you shouldn't buy low-volume 'breakouts':

[dmedin]

The best indicator of whether to buy or sell seems to be the 200-day SMA in this case.  😁

[dmedin]

Volume is picking up on the downside again.  Might be a good short now. 

[Caseynotes]

2 hours ago, dmedin said:

Volume is picking up on the downside again.  Might be a good short now. 

Has found support here recently, if looking to short I'd wait for the break though looking at the last volume bar it may turn out to be a test and rejection of 13800 before a move back up to test the recent high.

[dmedin]

J&J still holding up. 

[Caseynotes]

12 minutes ago, dmedin said:

J&J still holding up. 

[dmedin]

Let's see if it breaks support beneath 13200 ... if so could be in for a big drop.  Alternatively, it could bounce and be a great long. 

 

[Caseynotes]

1 hour ago, dmedin said:

Let's see if it breaks support beneath 13200 ... if so could be in for a big drop.  Alternatively, it could bounce and be a great long. 

 

That market looks prone to repeated very sudden and serious drops, what's causing that?

[dmedin]

10 minutes ago, Caseynotes said:

That market looks prone to repeated very sudden and serious drops, what's causing that?

I imagine it is manipulation by the big boys.  I see what you're saying though.  Probably best to stay away from it and not to trade.

[Caseynotes]

Friday's drop was US starting a criminal investigation after finds of asbestos in baby power product. Could roll on for a long time with, as you say, possible future shorting opportunities.

[dmedin]

Well yes, there is that.

Poisoning babies and addicting tens of thousands of people to dangerous opioid drugs ... but big corporations have a long history of bouncing back from these 'mishaps'.

[dmedin]

If it makes a clear drop (earning call tomorrow) then we have an immediate target of just under (or just over) 12000

[dmedin]

[dmedin]

Let's have a wee flutter.

[dmedin]

🙈  This is too much for me to handle!

[Caseynotes]

11 minutes ago, dmedin said:

🙈  This is too much for me to handle!

What's the exit strategy btw? If you have one then it can 'handle' itself 🙂

[dmedin]

Just now, Caseynotes said:

What's the exit strategy btw? If you have one then it can 'handle' itself 🙂

 

Yes, I can just leave it to do its thing. 

I will exit if prices goes back above the 'pivot'!

[Caseynotes]

1 minute ago, dmedin said:

 

Yes, I can just leave it to do its thing. 

I will exit if prices goes back above the 'pivot'!

ok, but isn't that lacking a certain something, I mean that could be a place for an initial stop loss but would you really want to see price race away in you favour 100s of points and then return all the way back to stop you out for a loss? just asking

[dmedin]

1 hour ago, Caseynotes said:

ok, but isn't that lacking a certain something, I mean that could be a place for an initial stop loss but would you really want to see price race away in you favour 100s of points and then return all the way back to stop you out for a loss? just asking

 

That's a really good question.  Normally I'd move the stop loss just above break even if it moves far enough away in order to give it more room to breathe, and then occasionally review the trade to look for candlestick patterns etc indicating a reversal or pullback and try to take profits.

Edited July 16, 2019 by dmedin

[dmedin]

Typical.  J&J is going nowhere but everything else is selling off right now.  Except Boeing, which is under investigation and facing multiple lawsuits.  One ought to 'do the opposite'.

[Caseynotes]

2 hours ago, dmedin said:

 

That's a really good question.  Normally I'd move the stop loss just above break even if it moves far enough away in order to give it more room to breathe, and then occasionally review the trade to look for candlestick patterns etc indicating a reversal or pullback and try to take profits.

An exit strategy adds information for deciding on the entry, where is price looking to get to, how long am I willing to sign on for. It encourages you to look ahead realistically rather than just hoping for a parabolic move after entry.

Consider trailing stops; based on MAs, ATR, set number of points away, manual trail following up to the next higher low.

Or set targets such as; S/R levels, pivot S/R, set number of points away, risk reward ratio eg 1:2.

Or, as you suggest floating targets such as the next reversal chart pattern, indicator cross overs (MA, MACD etc).

If you have already decided on how to get out you are not going to be so worried about what price does in the meantime.  

 

[dmedin]

J&J seems to be stuck, it wouldn't surprise me if price shoots up again - 'do the opposite' - like how Boeing's share price holding up despite the presence of a troop of elephants in the room.

[dmedin]

Getting some movement today after an evening star appears.

[dmedin]

I think we could get a break below this 13115 level soon.

[dmedin]

Edited July 17, 2019 by dmedin

[dmedin]

J&J is still in decline!😍