Here’s your trade on Vital Farms ($VITL) – January 10, 2025
Dan Fitzpatrick here at StockMarketMentor.com. Today I want to talk about Vital Farms ( NASDAQ: VITL ).
This is one of those evil farmers who produce and sell organic eggs, butter, and ghee in Texas and Missouri. Everybody knows that these people are jacking up their prices, and trying to get rich on inflation and all that stuff. By the way, I’m totally ‘BSing” you right now. Inflation is inflation, nobody is doing anything wrong, they make great eggs, I’ll tell you that.
The bottom line is, that this has been a really choppy, sloppy pattern for a while. But over the last month or so, I like the way this thing has been trading. It’s been squeezing, I’ve got these little lines here drawn. It’s been squeezing, today’s volume on a pretty heavy day in the market, was a little bit higher than average.
The stock ran up almost 2 percent, this is a stock that I would want to be looking at on Monday. Two standard deviations, these Bollinger Bands, they’re fairly narrow, this is what we want to see. This is what I’m going to do here, this is for me, I am going to put this line right here and I’m going to set an alert.
The only time I am going to be seeing this stock again is when the stock or if the stock hits this line and triggers an alert for me. So I can sit here, have this stock just squeezing away, and if it falls I don’t care about it. I’m not going to short a stock like this I don’t own it.
So if a stock falls all it’s telling me is, well, I’m not your huckleberry, I’m not a candidate for you to be buying so I don’t want to look at it. But this is like having a trading assistant that’s going to alert me when the stock starts getting pretty interesting.
The bottom line is, we’ve got very few stocks that are actually working, which actually makes trading easier. It’s harder to make a lot of money but it makes trading easier because you have fewer choices. If you’re looking at enough charts for long enough you’re going to find something stupid to do.
Instead, what you want to do is, have a short list of stocks and my guys have mine, I’ve shown them to them. You want to have a short list of stocks that are working and then you are just trading those. You’re holding them, looking for your entries, stuff like that but you’re not out there trying to make something happen. Just like, I want to make something happen. I’ll buy this because this time is different. Don’t do that, just don’t.
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