WED 8/12: PRI – SELLING (ALL) P/L: -$464.85 -4.6%

3:34 PM – Selling all my PRI shares as we head into today’s close. After Monday’s break below the 10 DMA, the stock has continued to exhibit bearish technical action, and the loss is now approaching my acceptable threshold. Rather than allow additional weakness to develop, I’m exiting the position and protecting capital.

James’ Trader’s Tip: Know Your Loss Threshold

  • A technical violation such as a break below the 10 DMA is an early warning that momentum may be deteriorating.

  • When weakness continues and the loss begins approaching your predetermined limit, discipline becomes more important than hope.

  • Taking a manageable loss protects both capital and flexibility for the next stronger opportunity.

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

THU 8/6: PRI – BUYING (1/3) @ $325.49

3:47 PM – Starting a 1/3 position in this insurance leader as we head into today’s close. Shares found support at the 10 DMA, are trading higher, and appear set to close at a new all-time high while volume runs 52% above average. That combination of strong price action, support at the 10 DMA, and expanding volume gives me a technical BUY SIGNAL.

James’ Trader’s Tip: New Highs Should Be Supported by Volume

  • A move to new highs confirms that the stock is demonstrating superior relative strength.

  • Above-average volume adds conviction by showing increased demand behind the advance.

  • When a stock rebounds from the 10 DMA and pushes into new highs on expanding volume, the technical evidence is distinctly bullish.

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