9:43 AM – Shares have dropped below the 50 DMA, and that is a SELL SIGNAL under our rules. Losing this key intermediate support level confirms the developing downtrend. Calling a FINAL and 3RD SELL SIGNAL here.

ULTRA Trader’s Tip: The 50 DMA Is the Line of Defense

  • The 50 DMA often acts as a major institutional support level.

  • When price breaks below this line, downside risk increases quickly.

  • Exiting the remaining position helps prevent further losses as the trend weakens.

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9:51 AM – Shares are making new lows today and the 10 DMA is just beginning to roll over. That signals weakening short-term momentum and the early stages of a developing downtrend. When a stock begins losing support and fails to stabilize, risk increases quickly. Calling a 2ND SELL SIGNAL here.

BUY SIGNALS:
2/20 (1/3) @ $25.43

SELL SIGNALS:
3/2 (1/3) @ $24.34 -4.3%
3/3 (1/3) @ $24.05 -5.4%

OVERALL P/L: -4.9%

ULTRA Trader’s Tip: Downtrends Start Small

  • A rolling 10 DMA is often the first sign that momentum is fading.

  • New lows following a support break confirm developing technical weakness.

  • Scaling out early keeps losses controlled before a downtrend accelerates.

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9:51 AM – Shares are breaking below the 10 DMA with little sign of institutional support. The stock has failed to show immediate upside follow-through after entry, and momentum is now deteriorating. For a swing trade, underperformance combined with a clear technical violation warrants action. Calling a 1st SELL SIGNAL here.

BUY SIGNALS:
2/20 (1/3) @ $25.43

SELL SIGNALS:
3/2 (1/3) @ $24.34 -4.3%

OVERALL P/L: -4.3%

ULTRA Trader’s Tip: Small Losses Are Strategic

  • A clean break below the 10 DMA is a rule-based exit — no debate required.

  • Swing trades should work quickly. If they don’t, risk must be reduced.

  • Keeping losses small preserves both capital and mental clarity for the next opportunity.

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