The equity markets are continuing to push for new all-time highs, which is translating into some great trades for us. If you’re not a member of my service, you’re probably missing out on this movement. Most recently, I alerted Roku (ROKU) for a swing trade, which ended up being worth about 8% in total profits. Short sellers are getting squeezed as this thing nears current highs. I think ROKU could ride off the back of its Q3 earnings results and build momentum into year-end. I’m already out of this position for now, and I don’t think it’s a good idea to step in front of a moving train.

ROKU swing trade highlight

Take a look at one of the emails I sent to my subscribers:

ROKU played out almost exactly as I expected it to. However, it didn’t quite reach one of my price targets just over $50, but it’s good practice to take profits. I started to scoop up shares at $43.81, and alerted members of my position in real time.

Here’s the email I sent out upon entering the trade:

We’re fully-transparent here. I never hesitate to let subscribers know exactly when I enter and exit a position.

Here is a quick look at the chart that I was watching right before I started buying ROKU.

ROKU opened and made a low below its 20-day moving average. Thereafter, it caught a nice bounce and formed a bullish engulfing candle. This is a battle-tested strategy, and I let the members know where I was looking to stop out. If you are able to map out your stop and target prices at the beginning of a trade, then you can better manage and size your positions accordingly.

When I was long ROKU, it never pulled back to my stop price and I ended up selling half of my position for 6% profit.

Here’s the sell alert that went out to all of my members

That’s a nice gain for a short swing trade. I sold the rest for a +10% gain.

It’s that simple. You could have followed me into this trade, set your stop and limit orders and let the thing ride. This is a great way to trade if you’re leading a busy life and don’t have time to sit at your screen all day and monitor option positions.

ROKU doesn’t look like a short yet

Now, there are some short sellers out there who think ROKU could fall below $30. ROKU reported strong Q3 earnings results, and showed growth in its user base/revenue per user. That in mind, I think it could continue higher. ROKU is nearly 10% off of its highs, and it looks like it could trend higher. Although I’m out of the trade for a nice gain in just a few days, I’m still watching ROKU for a possible round two. If it pulls back, I’ll look for a spot to get long again. For now, I’m going to remain patient and look for some other stocks to trade.

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   Petra Hess runs PetraPicks.com. She is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs.