MON 8/31: ECPG – Persistent Bearish Action is a Reason to Reduce Exposure

3:58 PM – Selling the last half of my ECPG position here this afternoon as the stock continues to display bearish technical signs. With the weakness persisting and my overall posture becoming more defensive at this point, I see no reason to continue holding the remaining shares. I’m exiting the position completely and protecting capital.

James’ Trader’s Tip: Adjust Your Exposure as Conditions Change

  • Persistent bearish action is a reason to reduce exposure rather than wait for conditions to worsen.

  • Individual stock weakness becomes even more important when your overall posture is turning defensive.

  • Capital preserved today is capital available for the next strong BUY SIGNAL.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

THU 8/20: ECPG – SELLING (1/2) P/L: -$249.34 -4.9%

3:44 PM – Selling half of my ECPG position here as shares gap lower and break below the 10 DMA. That loss of our key short-term support is a clear technical violation and a SELL SIGNAL under our rules.

James’ Trader’s Tip: Respect the 10 DMA

  • The 10 DMA is our primary technical indicator for identifying changes in short-term price strength.

  • A decisive break below the line signals that the stock’s technical condition is weakening.

  • Scaling out allows us to reduce risk immediately while leaving part of the position in place if the stock recovers.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

FRI 8/14: ECPG – BUYING (1/3) @ $102.93

10:04 AM – Starting a 1/3 position in this Financial Services-Specialty stock this morning as shares trade higher above the ROUND-$100 level on an increase in volume. This is the type of bullish price-and-volume action I cannot ignore. Let the stock tell you what to do—and then have the discipline to listen.

James’ Trader’s Tip: Let the Stock Make the Decision

  • A move above a key round-number level can signal that resistance is being cleared.

  • Increasing volume adds confirmation that stronger buying demand is supporting the advance.

  • The goal is not to predict what a stock should do. Watch the price and volume action, then respond to what it is actually doing.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.