ETSY starts a new wave extension with a pennantETSY finished a wave correction last week and initiated a new wave extension.
It signaled gathering steam with a pennant in wave 1.
Short term target is the previous high around 136. Longer term if markets hold up, we could be looking at 155.45. Our stop's right below the pennant at 127.
ETSY
ETSY looking bullish on a double pennantETSY had a mini correction after earnings recently. It has started to move up on a double pennant.
Quite unusual to see but as I've drawn and labeled. ETSY formed the first pennant on the 6th and the second on the 7th as a result of market dip.
As a result, I'm expecting a bullish move up which actually started at 2 EST and could continue into Monday, 8/10.
ETSY Strategy: $125 Entry, Long PT at $150Right now, I'm still guessing an overall long position at ETSY, but think it will continue having some more resistance until reaching the $125 price point prior to retesting. That being said, I think by November, this stock can easily reach $150 for a long PT target. The correlations seem to point to positive support levels overtime. As always, please do your own due diligence. Everything I say is on an opinion based basis. Proceed with caution at your own risk.
Etsy Will Soon Be A Good Shorting OpportunityEtsy has been in a very nice rising wedge from the March lows. As it reaches the top range of this wedge, it should be a good shorting opportunity. I expect it to fall from its wedge. The eventual target is the origin of the lower channel, or about $30.
We also have good bearish divergence on the RSI, on the daily:
ETSY - 9.95% Potential Profit - Ascending TriangleClear uptrend corridor with Support and Resistance confirmed multiple times over the past 4 months.
Ascending Triangle formed.
Short term swing trade that I would close before earnings on 5th August.
- Historical uptrend
- RSI + Stoch well above 50
- MACD above Signal.
Suggested Entry $117.68
Suggested Stop Loss $114.47
Target price $130
THE WEEK AHEAD: BYND, ROKU, SQ, ETSY, UBER EARNINGS; GDXJ, SLVEARNINGS:
There's a bunch, but here are the ones that interest me most for volatility contraction plays:
BYND (46/87/17.2%)*, announcing Tuesday after market close.
ROKU (40/84/16.6%), announcing Wednesday after market close.
SQ (40/74/13.4%), announcing Wednesday after market close.
ETSY (38/74/14.8%), announcing Wednesday after market close.
UBER (15/73/11.9%), announcing Thursday after market close.
Pictured here is a directionally neutral iron condor in BYND in the September cycle with the shorts camped out at the 21 delta strikes. A 3.26 credit as of Friday's close, it's paying nearly one-third the width of the wings. Naturally, you can go with the August monthly, but this is one that's known to be a mover, so I'd opt to go longer duration for more room to be wrong. For those who prefer naked: the September 18th 106/165 was paying 8.55 at the mid price as of Friday's close, with the August 21st 105/160 (18 delta) paying 5.45.
EXCHANGE-TRADED FUNDS WITH 30-DAY >35%, ORDERED BY RANK, AND SHOWING SEPTEMBER SHORT STRADDLE PRICE AS A PERCENTAGE OF STOCK PRICE:
SLV (46/58/15.0%)
XLE (26/40/11.5%)
GDXJ (22/57/16.0%)
GDX (22/46/13.0%)
EWZ (20/46/12.4%)
XOP (13/53/14.6%)
From a buck banging perspective, it's GDXJ (16.0%), followed by SLV (15.0%), and XOP (14.6%) for premium selling. I've already got GDXJ and SLV plays on, so may consider something in XOP if I'm desperate to add to my theta pile.
BROAD MARKET:
IWM (29/34/9.1%)
QQQ (22/27/7.5%
EFA (21/23/6.0%)
SPY (19/23/6.2%)
The volatility was nice ... while it lasted. I may switch over to IWM put selling in the IRA in lieu of SPY given that RUT is where the volatility is at relative to the others. The 16 delta strike nearest 45 days until expiry would be the September 18th 130, paying 2.05.
IRA DIVIDEND-GENERATORS:
XLU (23/20/5.6%) (3.19% yield)
IYR (22/28/7.2%) (3.27% yield)
EWA (22/30/8.4%) (3.72% yield)
EWZ (20/46/12.4%) (3.17% yield)
SPY (19/23/6.2%) (1.75% yield)
TLT (17/17/4.3%) (1.64% yield)
HYG (15/15/3.0%) (5.00% yield)
EMB (11/11/2.9%) (4.22% yield)
EWZ (12.4%), followed by EWA (8.4%), then IYR (7.2%). Getting kind of tired of laddering out EWZ, but you go where the volatility's at.
* -- For earnings, the August 21st at the money short straddle is used for determining the short straddle/stock price percentage; for everything else, I'm using September.
Short Target for Etsy at $70First off, please don't take anything I say seriously. As always, this is on opinion basis, and not financial advice. That being said, let me get into a few key points I want to make. Right now Etsy seems bullish and many analyst are giving it buy and hold ratings. I believe for a quick profit turn over with mitigated risk for day traders, a $70 short target should be quite reasonable as your next move.
Shopify and ETSY: Covid and Earnings CallFirst off, please don't take anything I say seriously as this is opinion basis. That being said, let us get into my insight. I believe due to the Coronavirus, likely online shopping and e-commerce have seen a spike in activity. This is due to people shopping online more. Not just e-commerce went up, but so did remote collaboration and other sectors as well. Looking at both Shopify and Etsy, the earnings calls for both companies seem quite soon, and even though Shopify went up tremendously, I think a $650+ target could still be reasonable. In terms of long gain potential though, I think Etsy may take the cake at a really lower cost stock, but only time will tell. It is still to early to call that. Both stocks are medium to high risk, and a lot depends on the earning calls. I think though it may be worth the bet, but there are other assets that have higher gain potentials as well (with lesser risk). As I said in 2018, Shopify still seems like a gold mine and is an example of one of those startup success stories or the American dream (well actually Canadian dream). Also keep in mind, in 2015, Shopify's IPO offering price was $17 and the early trade price was $28, meaning in 5 years you could have seen a 23 to 38 times profit for your investment.
Break above $62.6 and back tested, possible break out furtherBreak above $62.6 last week after 2 inside daily candles. and back tested level, possible break out further to all time highs $73. Online companies have been on fire, like SHOP and Wayfair. Earnings May 6, but this has run quite a bit. May options interest $70 calls with 1295, June $65 calls with over 6000 OI and $75 calls over 2200 OI. There isnt a chart pattern, maybe a small cup and handle. Good Luck!
ETSY - Current Long position, and Potential Gap TradeThe stock ETSY has hit the 50% Fibonacci resistance line and bounced off of it. The Fib line represents a trend that had been in place from February 2017, around $9 price, until the high of $73 in February 2019. This resistance line is very strong, and can represent reversals along with other indicators.
Currently we see on the 1D, 4H, and 1H charts, that the 5d MA has crossed over the 8d MA, potentially signalling bullish movement. I have opened a trade at $43.80, with a short to previous resistance of upward movement (about $42.80). I have a 50% sell at $46, and the other 50% will be aiming for the Gap Trade that could be in play. The downward movement on October 31 represented a $8 drop in price, which often eventually finds it's way back to the starting price, before resuming previous trend. IF the $46 trade hits it's mark, I will set the Sell at $52, and will be moving up my stop loss to $43.80.
Depending on how the MA plays out, I will keep this trade open to continue trade #2.
ETSY Poised to test 74 Breakout ZoneETSY has been consolidating within a standard box pattern for the past several weeks, and has broken out of its initial trend line resistance, ready to test the upper region of the box at 73.50-74. Whether or not it breaks from there remains to be seen, but a test of 74 would yield 3+ points per share. Not a bad return.
ETSY Entering BEASTMODE LONG ETSYEtsy earning smashed expectations in a time where retail had an awful Q4. Q1 looking sour for retail as well but this is a strong company with no real competitor so as long as the market is pumping I think ETSY is going to outperform. Weekly chart shows price breakout, DI+- breakouts, ADX turning up, and RSI flexing. GL