Here’s how we’re trading DraftKings ($DKNG) and Penn National Gaming ($PENN) (December 22, 2020)
DKNG PENN DKNG PENN
I am looking at DraftKings ( NASDAQ: DKNG ) here today. At Stock Market Mentor we have several active trades going, one of them is DraftKings ( NASDAQ: DKNG ), the other is Penn National ( NASDAQ: PENN ).
Penn National ( NASDAQ: PENN ) is working really well; I would just keep holding this. Always go back and forth between the daily and weekly chart. You can see here the stock has some pretty nice upside momentum, it’s a pretty modest goal I guess. I have got to look at at least $100.00 before I think about doing anything, but you definitely want to be protecting your profits here on this.
Now, on DraftKings ( NASDAQ: DKNG ) it is a little bit different. This was kind of a lower entry, the stock looked like it was going to break out here, a really nice move, and then it didn’t really have any follow-through, and now it’s just kind of languishing right here. We’re still in the trade, I am going to stay in it until the stock really starts moving against me. The stop, for those of you keeping score, is 49.95 so I am giving it a little bit of room, not a whole lot.
If you are not in this stock and you are looking to play around though, this is what I would do: I wouldn’t buy this stock right now. I would wait for it to go up and cross through $55.00. If it stays over $55.00 then I think it’s likely that the stock is going to give you at least 10 or 15 percent on the move; but right now it is still kind of trapped.
Again, we’re in it, we’ve got our stop set so I know exactly how much money will be lost if the stop is hit. But I am just going to hang in there with it because what I have found a lot of times is, if I get too impatient with a trade, like it’s been sitting there 3 days, it’s not working. I wind up selling the thing and then 5 days later the darn thing goes up 20 percent or something.
So there is some patience in this thing they call trading and it’s not just patience waiting for the right entry, it’s also being patience with a position that you have on. You don’t always want to be doing things really, really hasty, it just doesn’t work well for you.
Again, I would wait to buy DraftKings ( NASDAQ: DKNG ). With Penn ( NASDAQ: PENN ) I would be protecting profits but I would also be inclined to let it run a bit longer than you might normally do.
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