Hubert Senters here.
Let’s take a look at JNJ, Johnson & Johnson vertical move over the past one, two, three, four days. Now, if you don’t own a Time Machine how are you going to get in this bad boy is the question? So you want to be long JNJ because it looks like it’s going to continue on its vertical march to like $145 maybe and $150. So couple options you got.
You can just go long because you want it long because you think it’s going to go to $145. You’re going to have to use a stop-loss that you’re cool with. Let’s walk through an example. So if you went long let’s say $137 and your stop-loss let’s say $133 you’d be risking three points.
Now, what you want to do when you’re doing it if you’re going to risk if this is your risk box then you want to multiply that by a minimum of either three or five. So there’d be one, there would be two, there would be three.
So in other words, this box sort of fit in that box about three times on average. Okay. Now, if you’re not we’ll just blatantly just go long just for the heck of it. Use a three point stop-loss and you knew be going for a nonpoint target, right. Because if you use three points to the stop three times three will be 9, is that right? 3, 6, 9. Yeah. There we go. So easy math.
Now, if you want to do a pull back all you have to do is do a Fibonacci and draw from here at the beginning of the bind to there and your pullback would be in the area about where your stop would be so $133. Now, if it continues going higher you’re going to have to adjust your Fibonacci and then get your 50 percent pullback.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
