KNSA

THU 4/16: KNSA – CALLING A 3RD SELL SIGNAL (1/3) $45.31 +1.7%

James F. Taulman BB - SIDEBAR, KNSA, PERFORMANCE, ST - CHART UPDATES, ST PERFORMANCE

3:58 PM – After recently being clearly turned back from its 10 DMA last week, shares have now lost 50 DMA support later this week. That sequence confirms a shift in trend and continued technical deterioration. Calling a FINAL SELL SIGNAL here.

SELL SIGNALS:

12/26 $41.92 -5.9%
1/15 $37.20 -16.5%
4/16 $45.31 +1.7%

ULTRA Trader’s Tip: When Support Fails in Sequence

  • A turnback from the 10 DMA is often the first sign of weakening momentum.

  • A break below the 50 DMA confirms deeper technical damage.

  • When both occur, it’s a high-probability signal to exit and protect capital.

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MON 2/23: KNSA – SELLING ALL P/L: +$612.88 +3.1%

James F. Taulman BB - SIDEBAR, JTPP, JTPP PERFORMANCE, KNSA, PERFORMANCE

3:40 PM – Selling my entire KNSA position this afternoon ahead of tomorrow morning’s earnings announcement. While gains were significantly higher earlier in the session, I am choosing to lock in profits and avoid potential post-earnings volatility. Earnings reactions can be sharp and unpredictable. This exit also frees up capital for stronger-acting setups, including RBC (BUYING 1/3) and adding to MNST (FINAL 1/3).

MY BUYS:
2/13 (1/3) @ $45.79
2/19 (1/3) @ $46.99

MY SELLS:
2/23 (ALL) +$612.88 +3.1%

ULTRA Trader’s Tip: Earnings Risk Is Real

• Earnings events often bring sharp, unpredictable moves.

• Protecting gains ahead of known volatility is disciplined risk management.

• Strong trades can be re-entered after the event if structure remains intact.

• Capital should always flow toward the strongest current opportunities.

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THU 2/19: KNSA – BUYING/ADDING TO (1/3) @ $46.99

James F. Taulman BB - SIDEBAR, JTPP, KNSA

3:33 PM – Adding to my KNSA position this afternoon as shares surge higher, advancing from near the 10 DMA to new all-time highs on above-average volume. That is constructive, momentum-backed price action. The stock maintains very high overall ranks and has been reporting triple-digit percentage earnings growth compared to the same quarters year over year. Today’s action is clearly bullish and this technical action is the signal to add another 1/3 to my position.

MY BUYS:
2/13 (1/3) @ $45.79
2/19 (1/3) @ $46.99

NEW COST BASIS: $46.39

James’ Trader’s Tip: Add to Strength, Not Weakness

• Adding as price advances from the 10 DMA confirms institutional demand.

• Breakouts to new highs with volume indicate accumulation, not exhaustion.

• Averaging up in strong stocks is often more effective than averaging down in weak ones.

• Position sizing should expand when momentum confirms the thesis.

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To be completely transparent, below is the full history of my real-money trades in this stock. The results were not pretty. But the trades were disciplined.

I first bought KNSA on Monday 12/22. In hindsight, the cleaner entry was the prior Friday when the stock initially broke out to new highs on roughly twice its normal volume. That was the true technical trigger. Whether Friday or Monday would have made much difference is debatable, because the stock immediately pulled back over the next several sessions.

On 12/26, shares broke below the 10 DMA. That was a bearish signal and a 1st SELL SIGNAL. At that point, I then shifted focus to the 50 DMA as the next key support level. The stock briefly dipped below there on 1/5, but managed to close back above it. That kind of shakeout can flush weak holders and sometimes reset momentum, and in fact the following session was bullish with strong volume.

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However, the 50 DMA only held temporarily. On 1/13, a sharp, near blindside morning sell-off sliced decisively through the 50 DMA. That type of move is tough to manage along with— earnings volatility, gap downs, or swift institutional sell-offs. When those occur, I look for an immediate and convincing recovery to negate the damage.

The next session did show a +2.5% bounce on +128% volume, which was constructive — but it failed to follow through. Continued above-average volume declines into new recent lows had me making a full exit although there was logical prior support area around $37 from late last year. I did keep covering KNSA in the SwingTrades Portfolio with two SELL SIGNALS.

FRI 2/13: KNSA – BUYING @ $45.79

James F. Taulman BB - SIDEBAR, JTPP, KNSA

9:48 AM – Shares are breaking out to new highs this morning on above-average volume, and that is a clear BUY SIGNAL.

MY BUY:
2/13 (1/3) @ $45.79

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To be completely transparent, below is the full history of my real-money trades in this stock. They were not pretty. But they were disciplined.

I first bought KNSA on Monday 12/22. In hindsight, the cleaner entry was the prior Friday when the stock initially broke out to new highs on roughly twice its normal volume. That was the true technical trigger. Whether Friday or Monday would have made much difference is debatable, because the stock immediately pulled back over the next several sessions.

On 12/26, shares broke below the 10 DMA. That was a bearish signal and a 1st SELL SIGNAL. At that point, I then shifted focus to the 50 DMA as the next key support level. The stock briefly dipped below there on 1/5, but managed to close back above it. That kind of shakeout can flush weak holders and sometimes reset momentum, and in fact the following session was bullish with strong volume.

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

However, the 50 DMA only held temporarily. On 1/13, a sharp, near blindside morning sell-off sliced decisively through the 50 DMA. That type of move is tough to manage along with— earnings volatility, gap downs, or swift institutional sell-offs. When those occur, I look for an immediate and convincing recovery to negate the damage.

The next session did show a +2.5% bounce on +128% volume, which was constructive — but it failed to follow through. Continued above-average volume declines into new recent lows had me making a full exit although there was logical prior support area around $37 from late last year. I did keep covering KNSA in the SwingTrades Portfolio with two SELL SIGNALS.

This morning, the stock is breaking out to new highs on expanding volume. That is a technical BUY/ADD SIGNAL. The past trade does not control today’s decision. The chart does.

Stocks exhibit bullish behavior and bearish behavior. When they break support, we sell. When they break out properly on volume, we buy. That is how this system works. No ego. No attachment. Just reaction to price and volume.

THU 1/15: KNSA – SELLING (ALL) P/L: -$3,580.60 -15.1%

James F. Taulman BB - SIDEBAR, JTPP, JTPP PERFORMANCE, KNSA, PERFORMANCE

10:13 AM – While yesterday’s positive reversal on more than twice normal volume looked constructive and suggested the start of a potential quick recovery, that follow-through failed to materialize. This morning, shares are making new lows. The stock now has significant overhead supply to work through, and is technically disadvantaged. I’m exiting the position. Capital is being redeployed into cleaner setups with better upside asymmetry such as Knowles Corp (KN – NYSE) which I am now starting a 1/3 position in.

James’ Trader’s Tip: Failed Reversals Are a Red Flag

  • One strong day does not make a trend — follow-through is required.

  • When a bullish reversal fails immediately, risk escalates quickly.

  • Cutting exposure in damaged charts preserves capital for stocks that can move higher with less resistance.

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TUE 1/6: KNSA – BUYING/ADDING (1/3) @ $42.98

James F. Taulman BB - SIDEBAR, JTPP, KNSA

3:44 PM – Buying back into KNSA this afternoon ahead of the close. Shares posted bullish price action today, gaining +3.9% off their 50 DMA support, while volume expanded to roughly +160% of average, signaling conviction behind the move.

BUY SIGNALS:
12/22 (1/3) @ $43.86
12/22 (1/3) @ $44.03
1/6 (1/3) @ $42.98

NEW COST BASIS: $43.62

ULTRA Trader’s Tip: Respect the 50 DMA Bounce

  • The 50 DMA is a key institutional support level — strong reactions from it matter.

  • Gains off support with heavy volume often signal renewed accumulation.

  • Buying strength from support, not weakness into it, keeps probabilities in your favor.

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FRI 12/26: KNSA – SELLING (1/3) P/L: -$295.28 -4.4%

James F. Taulman BB - SIDEBAR, JTPP, JTPP PERFORMANCE, KNSA, PERFORMANCE

10:16 AM – Shares are trading just below the 10 DMA this morning. While holiday trading conditions can mute signals, I’m choosing to lighten exposure by 1/3 of the total position here. With this account sitting near all-time highs, the priority is protecting gains and keeping risk contained into year-end.

SELL SIGNALS:
12/26 (1/3) @ $41.92 –4.6%

ULTRA Trader’s Tip: Protect Gains Near Year-End

  • When a stock fails to reclaim the 10 DMA, momentum is no longer working in your favor.

  • Trimming during uncertain, low-liquidity sessions reduces downside without abandoning the trade entirely.

  • Strong years are preserved by defense, not by forcing marginal setups late in the calendar.

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MON 12/22: KNSA – BUYING (1/3) @ $44.03

James F. Taulman BB - SIDEBAR, JTPP, KNSA

10:26 AM – Adding to this position as shares continue to hold and build off the 10 DMA. Strength is confirming the initial entry.

BUY SIGNALS:
12/22 (1/3) @ $43.85
12/22 (1/3) @ $44.03

COST BASIS: $43.95

ULTRA Trader’s Tip: Add Only When Strength Confirms

  • Adding works best when price confirms the thesis, not when it drifts sideways.

  • Holding above the 10 DMA keeps risk controlled while momentum builds.

  • Scaling in with confirmation improves positioning without chasing strength.

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MON 12/22: KNSA – BUYING (1/3) @ $43.85

James F. Taulman BB - SIDEBAR, JTPP, KNSA

10:21 AM – Shares are advancing from the 10 DMA with an increase in volume, signaling renewed short-term momentum. High ranks, strong group action, and solid fundamentals support the entry.

BUY SIGNALS:
12/22 (1/3) @ $43.85

ULTRA Trader’s Tip: Buy Strength From Support

  • Advances from the 10 DMA with volume often mark institutional support stepping back in.

  • Buying near short-term support keeps risk defined and improves reward potential.

  • The best entries combine technical strength, strong ranks, and solid fundamentals — not just price movement.

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