Good morning, traders! Barrie Einarson here with today’s edition of What Makes This Trade Great. Let’s switch things up a bit and dive into a setup that truly showcases the beauty of preparation and analysis.To Subscribe: https://go.trade-ideas.com/SHQ
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Today, we’re looking at SIG—a stock that wasn’t moving on earnings but on sentiment. The company hinted that upcoming earnings might not be stellar, which got the market’s attention. When companies precondition the market like this, it creates incredible trading opportunities.

The Setup That Caught My Eye

This one came through one of my favorite tools—my combo scan. It’s a powerful blend of option activity and a 10-day daily break, perfect for spotting actionable setups. The alert hit at $58.02 for a short opportunity, and I jumped in right there.

What a trade! It delivered a clean, quick move, and I locked in profits. But here’s where I slipped up—I didn’t reset a price alert at the original entry point. Rookie mistake, I know! SIG went on to give another $4 move, which I unfortunately missed. Let this be a reminder: always reset your alerts. Opportunities don’t wait.

Why This Trade Worked

1. Market Sentiment: SIG’s pre-earnings sentiment created a bearish setup that aligned with my scan’s criteria.
2. Technical and Fundamental Alignment: The combo scan pinpointed the entry perfectly, combining strong technical signals with the underlying sentiment.
3. Discipline is Key: The missed second leg was a lesson in staying disciplined, especially with alerts and re-entries.

Final Thoughts

SIG was an incredible trade, offering not one but two opportunities to profit. While I missed the second leg, the lesson here is clear: stick to your game plan and stay focused.

This one’s still on my radar. If the broader market recovers, we might see a potential bounce play here. Don’t let it catch you off guard!

Back to the trading room for now. Keep learning, stay disciplined, and I’ll catch you tomorrow for more insights.