Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
JUSTIN NIELSEN

Short Run In ONON Stock Gave Quick Profit

Rather than hold a stock for a long move, sometimes it's best to take the quick profit when you have it. When ONON stock started running, a 10% profit in one week was enough to satisfy us. Here's how we handled the trade.

Lacing Up ONON Stock

Shoemakers often can change leadership and that seems to be happening now with Swiss-based shoemaker On Holding. Its last earnings report (1) showed a lot of price discovery but started a solid run (2). Rival Deckers Outdoor led for most of the prior two years but gave up its leadership mantle in May.

After a weak start in the stock market for September, ONON stock found support at its 21-day line (3). It then tightened up for the next few days. When indexes showed a big upside reversal on Sept. 11, ONON stock again got support at its 21-day and was an early mover (4). It joined SwingTrader that day.

Now that the Fed started its cutting cycle, David Saito-Chung explains what we should expect

ONON started as a half position as we tested the waters but due to its strength we added another quarter position later the same day after making progress.

We finished our position with another quarter the next day (5) making it a full position. ONON was breaking above resistance from its Aug. 27 high (2), but we were already at a 7% gain from our initial entry. We stayed content with our full position and low average cost.

September Starts On Rocky Road

As ONON edged higher we enjoyed the gains and let it run. But a strong pop on Sept. 18 seemed like a gift that made it worth locking in  some profits (6). We were up 4% from our latest quarter add and we trimmed that quarter. We had an 11% gain from our initial entry.

The next day saw the stock reverse the gains and we started selling as it kept dropping throughout the day (7). By the end of the day, we were out of ONON with over a 9% gain in the trade in just under a week.

But that doesn't mean we are done with the stock. Usually a reversal like that would lead to more weakness in the short term. And ONON did get worse the next day but then it held tight over the next four days (8).

The tight action is a strong cue that this stock might be ready to go again.

More details on past trades are accessible to subscribers and trialists to SwingTrader. Free trials are available. Follow Nielsen on X, formerly known as Twitter, at @IBD_JNielsen.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.