It Make Sense Buying Into A Rising Stock - A Case Of FEDEXArguably one of the best performing stocks after the outbreak of Coronavirus. Just made some corrections and heading towards the bearish order candle. A new 52 week high with a low PE ratio indicate a high potential for this stock.
N.B
- Let emotions and sentiments work for you
-ALWAYS Use Proper Risk Management In Your Trades
FDX
Close above resistance!Potential gain:15%
Reward/Risk:2.5
Timeframe: 1-4 wks
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Reversal back into the range? #stocksThe Chart: If price can break this down trendline I am looking for the stock to move higher back into the range. Looking for the opposite of the downward reversal back on December 8.
The Narrative: Despite the reopening online sales will continue to grow. Although Amazon is increasing becoming a competitor, the shipping market is largely a duopoly and as the economy improves they should have pricing power.
But it is in a great buying opportunity range under 260.00 There was a long red wick on the weekly chart on the ninth of November,
meaning a future down trend, at least in my opinion it does,
Plus it broke my white support line.
So it’s going under 262.00 to 258.40 or maybe 255,
But it’s in a great buying opportunity range under 260.00.
Happy Holidays, and safe trading everyone.
FedEx Stock Lost From No Vision, But Robust Q2 Earnings ShineU.S. delivery firm FedEx released their Q2 2021 earning report showing total revenue of $20.6 billion which is up 19% year-over-year.
FedEx (FDX Stock) said quarterly profit almost doubled after rate hikes and spiking volume helped lower the cost of delivering pandemic-fueled e-commerce purchases to residential addresses.
FedEx had an operating margin of 7.1% with a net income of $1.23 billion. That represents a net income jump of 119% year-over-year.
FedEx stated that freight supporting ground and express during peak time achieved the best second-quarter operating margin since 2006.
In this video are my thoughts on FedEx and what is most likely to happen with support and resistance price points.
THE WEEK AHEAD: FDX, LEN, MU, CCL EARNINGS; XOP/XLE, IWM/RUTEARNINGS ANNOUNCEMENT-RELATED VOLATILITY CONTRACTION PLAYS (IN ORDER OF ANNOUNCEMENT):
Here are the options-liquid underlyings announcing next week that I've culled down to 30-day >50% as candidates for volatility contraction plays:
LEN (21/49/11.6%),* announcing Wednesday after market close
MU (24/52/12.2%), announcing Wednesday (no time specified)
FDX (29/53/11.9%), announcing Thursday after market close
CCL (27/91/21.1%), announcing Friday (no time specified)
Pictured here is a January 15th 17.5/27.5 short strangle in CCL which announces Friday, paying 1.36 as of Friday close with delta/theta of -4.86/4.84 with break evens wide of 2 times the expected move on the call side, and between the 1 and 2 x on the put. Although no time is currently specified, it is likely to announce before market open (because who, like, announces after Friday close?), so would look to put on a play in the waning hours of Thursday's session if you want to take advantage of Friday's post-announcement volatility contraction.
EXCHANGE-TRADED FUNDS RANKED BY BANG FOR YOUR BUCK:
XOP (21/60/16.3%)**
GDXJ (15/44/12.9%)
XLE (30/45/12.5%)
KRE 924/41/11.1%)
SLV (25/40/11.2%)
GDX (16/38/10.7%)
EWZ (15/39/10.6%)
XBI (24/38/10.0%)
BROAD MARKET EXCHANGE-TRADED FUNDS:
IWM (25/30/7.8%)
QQQ (23/30/7.6%)
DIA (16/23/6.0%)
SPY (16/23/5.6%)
EFA (20/24/5.1%)
TREASURY/BOND FUNDS:
Adding a little bond/treasury section to here since I occasionally park what would otherwise be idle cash in short puts (See Post Below).
TLT (11/15/3.99%) (1.609% yield)
HYG (11/11/2.41%) (4.917% yield)
EMB (5/9/--)*** (4.024% yield)
AGG (29/8/--)*** (2.252% yield)
* -- The first metric is the implied volatility rank or percentile (i.e., where 30-day implied is relative to where it's been over the last 52 weeks); the second, 30-day implied volatility; and the third, what the January 15th at-the-money short straddle is paying as a function of stock price.
** -- Here, I'm using the short straddle price nearest 45 days until expiry to calculate the "bang for your buck" percentage, which would be the January 29th weekly.
*** -- EMB and AGG don't have weeklies nearest 45 days.