Results For Trade Ideas — $W, $JAZZ, $WEN, $NVDA, $SHAK, $EA
May 14, 2016
Trading results of gains are the goal. This week’s trading idea results follow as a lessons learned.
I hope your trading has been successful this week. Last weekend, 6 trading suggestions were given using StockSwipe. How did those suggestions do? 6 of 6 were gainers if entered at the right point- key right?
How do you know when to enter? Well, a trader can’t get perfect entries but chart analysis and social media, like Twitter, and trading apps, like StockSwipe, can help. What follows are the possible gain ranges and charts to assist in helping to estimate entry point. An exit point is usually determined by a trader before a trade, and can be a set percentage or dollar value generally called a greed line.
Results
$W up 14%; Calls +90%
$JAZZ down 6.5%; Puts +50%
$WEN down 16%; Puts +60%
$NVDA down 4%; Puts +40–70%
$SHAK down 8%; Puts +40–70%.
$EA up 17%; Calls +200–500%!
Charts and Analysis
What follows are 5-day charts to show the trading history for the week’s trading ideas. Indicators such as CCI, MACD, ADX/DMI, and CMF, and overlay Bollinger Bands, are utilized to estimate price trend, momentum, and trader sentiment. Various chart periods, such as 1-month, 3-month, and 6-month, can also give insights into predicting a stock’s trend.
$W — Wayfair Inc.
$W was bullish after ER on Monday. It rose 14% before fading slowly the rest of the week.
$JAZZ — Jazz Pharmaceuticals Inc.
$JAZZ was a wait and see after its ER 5/10. Chart indicators were neutral until after initial reaction after ER. A 6.5% loss occurred over two days as the ticker faded from the initial ER buzz and reality of other trading articles set in. CCI over 100 was an overbought signal, but the drop below 100 signaled the short.
$WEN — The Wendys Company, Inc.
$WEN was bullish to its ER. After ER an overreaction of buying occurred before a crash to reality. The CCI spike above 200 and then fall, MACD convergence below the MA line, and -DM spike above +DM were short signals. A 16% drop occurred from the ER high.
$NVDA — NVIDIA Corporation
$NVDA was bullish before its ER 5/12. The initial reaction with ER results was negative with a 4% drop in stock value. Only the day trader could have gained from this suggestion as the stock turned around in the afternoon to $38.25 for a 9% gain. Notice CCI spikes above 100, CMF above 0 consistently, and MACD above 0.
$SHAK — Shake Shack Inc.
$SHAK was a victim of the general market as it gained to Tuesday and then fell before its ER 5/12. $SHAK fell 8% before ER.
$EA — Electronic Arts Inc.
$EA is a short in the mid-term, but the suggestion was a bullish move before ER 5/10. After ER, $EA gained 17% over 3 days. Chart analysis showed CCI staying above 0 with 100 spikes, MACD above 0 and its MA, and CMF trending above 0 indicating bullishness.
Final Lessons
Finding trading targets- StockSwipe can take the pain out of finding targets and save a trader time. The ticker cloud shows current relevant tickers with trader buzz.
Entry point- Wait for a catalyst, such as ER anticipation or results, to get bigger possible gains.
Option gains- Options can be a fast way to garner gains but very high risk. Look for decent option volume in a targeted strike and expiration date so a trade doesn’t become stranded.
Overall stock market trend- Many trading strategies do rely on the overall market trend, such as the before or after ER strategy. The stock market was bullish Monday-Tuesday but bearish Wednesday-Friday. Is it a coincidence that many of the charts shown today have a similar trend?
