For the second week in a row, twopercentgoal.com is proud to announce a very successful pick. This one shattered last week’s performance. Whirlpool (NYSE:WHR) earned a 41.7% profit over 11 trading days. We recommended shorting Whirlpool at the opening bell on February 18 at 86.50. We exited the trade on March 5 when the stop loss was triggered at 61.06. Its biggest one-day gain was February 24 where it closed at 71.67 down from the previous day’s close at 83.21, a one-day profit of 13.9%.
This marks the second week in a row that twopercentgoal.com has had best picks of the year. Last week we reported earning 19.2% by shorting SCP Pool over five trading days. At that time, that was the best pick of the year. This pick with Whirlpool has shattered that mark by earning more than twice as much profit compared to SCP Pool.
This marks the second time this year that we have successfully shorted Whirlpool. We also shorted it between January 27-30 earning 8.7%
While both Whirlpool and SCP Pool had impressive returns, we freely admit this is not the norm. As the name states, twopercentgoal.com is all about earning 2% per week through swing trading. As opposed to day traders who buy and sell intra-day, swing trading has a slightly longer time horizon anywhere from three days to three weeks.
We use technical analysis tools that have survived the test of time and have proven to be highly effective. We use Relative Strength Index (RSI), 50-day and 200-day moving averages, the moving average convergence divergence (MACD), the on-balance volume and the stochastic oscillator. When all signals are showing the same thing simultaneously, the results can be very impressive.
There was another interesting technical feature showing Whirlpool was ready to fall. If you look at the chart below by clicking on the hyperlink, you will see two high price peaks on January 22 and February 12. By drawing a straight line between these two peaks you will see it is upward sloping suggesting higher highs. However, the technical indicators all said the opposite. The corresponding days for the RSI, MACD, on-balance volume and stochastic oscillator all suggested the price was over valued and ready to fall and the day to enter the trade was right after the stochastic oscillator dropped below 80.
Go to twopercentgoal.com and subscribe to the daily email. It is free for the first 30 days and then $49 per month thereafter. It will show stocks that have met all the criteria to either go long or go short. You will also see our current portfolio, when we have bought it, its corresponding goal and its stop loss to exit the trade. Good luck with your investments.
Click here to see Whirlpool’s chart: