EXR & CUBE Stopped Out For Profit With The TSL

As I mentioned in my previous article, I don't get caught up in asset names. 

Instead, I look at the chart and the history of performance of the asset. If it has performed well in the past, then it is very likely to perform well in the future, regardless of asset name. 

This is the foundation of technical analysis. I then use a checklist system to find an entry point and a TSL to exit from my positions. 

This brings a mechanical approach to my investing, removing all the guesswork and subjectivity. 

My primary objective is always profit.

Extra Space Storage EXR

This is a stock that has an excellent history of performance. I entered it into my portfolio after it broke out from a 17-month consolidation. I held this stock for 7 months before the pullback of last month triggered my TSL for decent profit. Monthly timeframe below.

CubeSmart CUBE

CUBE has a very similar chart to EXR. Not surprising given that they are both in the Real Estate Sector. My entry and exit points for CUBE mirrored EXR. Monthly timeframe below. 

Given how quickly price had moved in recent months, it was not surprising that the pullback of September was deep. My TSL was triggered on both and I exited for an overall profit. 

It is at this point where people end up chasing positions. 

I simply revert back to my scanning, analysis and checklist system and I will be standing aside until this next meets my criteria. 

I would ideally like to see a base in the form of consolidation created first as this will act as a foundation for the next leg up. As the saying goes, the longer the consolidation, the bigger the breakout. 

Both EXR and CUBE are cheap stocks with excellent upside potential. Timing of entry is key. 

Zaheer Anwari - Co-founder of Sublime Trading