Best Stock Charts This Week: TXN, HE, MGM and LABU—How Big Should You Go?

“I’m bullish.” or “I’m bearish”.

Fine. But how much have you bought?

A starter position and a fully built position can express the same market opinion while putting very different amounts of capital at risk.

In this week’s Best Stock Charts, I review Texas Instruments, Hawaiian Electric, MGM Resorts and LABU. Each setup asks a different question. The common thread is position sizing.

You can’t control price. You can control size.

A profitable exit doesn’t have to be the perfect exit

We closed our Nike trade for a 4.19% gain.

Could we have captured more by holding another day? Yes. But I wanted to reduce consumer discretionary exposure because of the risk of rising yields.

The decision was about managing the portfolio rather than squeezing every last cent out of one trade.

That same discipline applies before the next purchase. An attractive chart does not require an immediate full-sized position.

Hawaiian Electric: what the Conviction Meter shows

Hawaiian Electric provides the clearest example in this week’s review.

We started at 25% of our intended allocation, then increased it to 40%. The Conviction Meter makes that stage of the trade visible.

Suppose the planned maximum dollar allocation to a trade is $1,000. At 25%, $250 has been deployed. At 40%, that becomes $400, leaving $600 of the planned allocation undeployed.

Forty percent refers to the planned position—not the entire account. It does not mean a 40% chance of success.

My interest in Hawaiian Electric centers on a beaten-down stock, improving RSI and historical support highlighted in TrendSpider.

Those observations explain why I am interested. They do not establish that the low is in.

Keeping capital in reserve preserves flexibility. It does not create an obligation to buy more if price falls. Additional purchases still require a valid thesis, acceptable total risk and a defined point where the idea is wrong.

Texas Instruments: strength still needs confirmation

Texas Instruments stands out in my review because of its behavior following earnings.

I discuss a potential continuation pattern and contrast that strength with selling in other large technology names.

But relative strength is not immunity.

For this setup to become more attractive, I want the semiconductor group and broader Nasdaq to find their footing. A promising individual chart deserves attention. It does not justify ignoring weakness around it.

Members should consult the current trade plan for entry, target and stop updates.

MGM: oversold is not an entry signal

MGM illustrates why patience belongs in a trading plan.

In the video, I identify support areas near $27.65 and $25.11. These are chart reference levels from the recording, not guaranteed floors.

I also discuss a breakout that failed to hold.

That failure matters. An oversold reading can persist while price continues lower, particularly when the next meaningful support area is some distance away.

At the time of this review, I had not bought MGM. I wanted stronger evidence before committing capital.

If the opportunity develops, the Conviction Meter can communicate a gradual position build. It cannot turn an unconfirmed setup into a confirmed one.

LABU: leverage raises the stakes

LABU provides leveraged exposure to biotechnology stocks. It targets three times its benchmark’s daily performance before fees and expenses.

That daily objective matters. Over multiple days, returns can differ substantially from three times the benchmark’s cumulative return.

In this review, I focus on whether selling volume continues to decline near support and whether price can recapture resistance.

My approach is to stay small while watching for that evidence.

A quieter pullback can be worth studying. It is not proof that buyers will take control. Leverage makes position size and the exit plan especially consequential.

A better conversation than “buy or sell?”

The Conviction Meter answers a practical question:

Where are we in building the intended position?

Starting a position, adding to it and reaching the planned allocation are different decisions. Members deserve that context.

The meter belongs alongside the trade thesis, entry conditions and risk limits. It is a communication tool, not a forecast or guarantee.

When a trader says “I bought,” should they also explain how much of the planned position is already built?

Watch this week’s Best Stock Charts and tell me whether the Conviction Meter makes that conversation clearer.

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Robert Desmond
Founder, The Contrarian Trader — established 2005.

Educational content, not individualized investment advice. Positions and chart levels reflect the recording and may change. Trading involves risk. Past performance does not guarantee future results.