What are your trades in MON? (The answers)

BellaMike Bellafiore's (Bella's) Blogs2 Comments

Non-experienced traders should not be trading MON during a conference call.  Experienced traders not listening to the conference call should not be trading during the conference call.  Experienced traders who do not know a great deal about MON should not be trading this during the conference call.  So this was a bit of a trick question (couldn’t fool @thearmotrader).

But let’s assume there wasn’t a conference call going on.  And certainly there were trades to be made after the call ended.  What trades could be have made?  I tweeted today that gaining knowledge about a trading set up is not the same as having the skill to execute.  But the first step is to teach you the set ups that you can master.

This is not an exhaustive list of trades that could have been made for the intraday trader in MON.  But they are the best trades that I saw.  They are the trades that you should most consider adding to your playbook.

1. Momentum Trade: Buy above 73 and sell when it slows.

2. Momentum Trade: Hit below 73 and cover when it slows

3. Bearish Flag Pattern: Sell into the flag and below and hold until the intraday downtrend is broken

4. Sell into the Upmove: Sell into the upmove near 71.50 and hold until it breaks the intraday downtrend

Mike Bellafiore

Author, One Good Trade

2 Comments on “What are your trades in MON? (The answers)”

  1. I wanted to trade MON in the morning but the conf. call being at 9:30 made me pass. Was not listening and even if I was, not experienced enough to trade it yet.

  2. Hi Bella,

    I was wondering, on ‘momentum’ plays, you say to get out when the tape slows. I was wondering if you can further describe that. Would you consider a momentum breakout slowing down when the offer isn’t lifting anymore? or when the tape is ticking at a slower pace? etc.



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