1:43 PM – Calling a FINAL SELL SIGNAL. What started as a promising breakout attempt quickly failed as shares could not hold above the 10 DMA. Each step down confirmed technical deterioration, and by August 18th the system called a FINAL SELL SIGNAL. While a loss, this trade is an example of how ULTRA enforces strict rules to limit damage when a stock fails to perform — protecting capital for stronger opportunities.

• 8/4 (Buy): Entered a 1/3 position at $333.47 as shares looked to be building on a strong uptrend, riding above the 10 DMA.
• 8/11 (Sell): With shares starting to roll over and weakness showing, I sold the position. The trade booked a –6.4% loss (–$639.68).
• 8/12 (2nd Sell Signal): Called at $315.74 as the stock broke below the 10 DMA with volume, confirming technical weakness. P/L at that point: –5.3%.
• 8/18 (3rd / FINAL Sell Signal): Called at $305.36, representing a –8.4% loss from the buy point. This marked the full exit of HEI as the stock clearly violated support and lost momentum.

Let’s turn a loser in a lesson…

ULTRA Trader’s Tip: The 10 DMA Is Our Most Important Indicator

• The 10 DMA acts as the first line of support in a healthy uptrend.
• A decisive break below it — especially on volume — is an early warning to reduce or exit.
• Staying disciplined with this rule helps cut losses quickly and protect capital.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.

 

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James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts.