Zillow bull-case idea!Since its all-time-high on 2/2/2020 at $66; which was reached due to a 12% jump from earnings... ZG has fallen 50%
As we have seen in the past few volatile weeks, some stocks have outperformed due to the idea they will benefit from the COVID.
For example:
People buying masks, hand sanitizer (CLX)
People are staying home to work (ZM)
People are staying home streaming (NFLX)
People are stocking up on durables, non-perishables (COST, WMT, PG, CPB)
Pharmaceuticals are producing cures/vaccines/diagnostic tests (CODX, GILD)
With interest rates as low as they have ever been; housing is becoming very cheap, allowing people to buy more, and more expensive houses.
With the latest trend of staying home, plus people wanting to buy homes. I believe Zillow (ZG) could be a gainer.
--> Set tight limits, as negative momentum has been killing the bulls.
Rest up this weekend, happy trading!
GILD
GILEAD In the LeadCharting historical Support and Resistance levels. Gilead was on track to have an improved 2020 financials wise even before Corona Market. They are the front runner for vaccine in terms of drugs already in trials to treat similar COVID diseases. They also have two drugs being tested and waiting to be approved in China for cancer drugs which will continue to bolster stock if looking to hold long term. Many smaller biotech stocks with few to no results were losing value even in the bull market of last few months, now once Corona fears subside or companies have patented successful drugs, those companies will go back to losing their value and I think player like GILD are here to eat that up for those still looking to invest in biotech, but not penny stocks. Considering how manic this run up has been, the tests at the historical levels have been met and beaten, just not for as long as we'd like to see. Seems likely to have a small correction 03/09 as it's now at the level it was previously brought down sharply, but if mooning through 82.50 without dropping below 78.50 then it's clear to have another discovery between 85-90.
Summary:
Good long term investment. Good swing trade. Scalping could cause a shortened lifespan, though huge room for profit (and loss =D)
$GILD Finally Breaks Out After A Long Period Of Consolidation$GILD has been stuck in the $63 to $70 range for over a year. After yesterday's significant breakout, look for $GILD to keep climbing. Contributing to yesterday's breakout was the news that a World Health Organization official comments that the company's experimental drug may be the best candidate to treat the new coronavirus that's spreading globally.
Gilead's remdesivir is the “one drug right now that we think may have efficacy,” Bruce Aylward, an assistant director-general at the World Health Organization, said at a briefing in Beijing.
The compound has been advanced to clinical trial in China. WHO said results may be available within weeks.
$GILD looks to be a smart play in the current environment.
As always, trade with caution and use protective stops.
Good luck to all!
ridethepig | GILD 2019-nCoV TargetA good time to review the previous floor at 60.xx that we have been tracking for almost a year in $GILD. Here taking the latest misses in Q4 Earnings with a pinch of salt as the red carpet has been rolled out for Gild via China. Once again another buying opportunity given the latest progress around Phase III clinical trials:
On the Remdesivir (GS-5734) side, this is their free pass into the Chinese Healthcare system. Models will need to start quickly repricing revenue from the Hep B cases in China. GILD will do the heavy lifting here, +/- $20 upside available on the headline for FDA approval which looks around the corner. Flow-wise, the initial target area from the latest technical break comes into play at 86.xx (+25% from current levels).
As usual thanks for keeping the support coming with likes, comments and etc!
GILD Falling WedgesGILD seems to be forming a long term bottom, the presence of two falling wedges displays the possible repeating bullish nature of this chart. Green fractal indicates a long term target price of ~100. If downsides occur a stop loss is placed. MACD can be observed to be also rising. Volume is not always a great indicator of price movement but in a more mature market such as this, volume spikes can be interpreted as bullish signs.
GILD - DAILY CHARTHi, today we are going to talk about GILD and its current landscape.
We can observe at this timeframe, a confluence of technical factors, that entail a setup which might drive this asset to a new movement. The details of our analysis are highlighted in the chart above.
Want to know more about our trades and ideas? Join the Traders Heaven today.
Thank you for reading and leave your comments if you like.
To have access to our exclusive contents, and see more of our work, join the Traders Heaven today! Link Below.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice
Time to get defensive in $GILDThe global slowdown is coming and it is time to get defensive. Here we are reaching the end of the road to the downside in Gilead and a perfect instrument to work the flows with.
We are tracking a break of the channel to unlock the +11% move. Let's see how it plays out over the coming days.
Best of luck
THE WEEK AHEAD: AAPL, GILD, X, BIDU; GDXJ, /NGEARNINGS
On initial screen for high rank/high implied, here are next week's potential winners for earnings-related volatility contraction plays: AAPL (31/27) (Tuesday after market close), X (52/54) (Thursday after market close), GILD (30/27) (Tuesday after market close), and BIDU (50/41) (Tuesday, but unspecified as to before or after market close). Because background implied on both AAPL and GILD are <50% (not what I like to see to play an earnings-related volatility contraction), those are cut from the list, leaving X and BIDU.
Pictured here is a tight short strangle in the September cycle paying 1.11/.56 at 50 max as of Friday close, with break evens at 12.89/18.11, and delta/theta metrics of 2.59/1.74. You can naturally go full on short straddle, but giving the setup some room between the put and call will give you the ability to adjust the strikes intra-trade without going inverted to do so, as you might have to if you went with the September 20th 15 short straddle, which is paying 2.29/.57 at 25 max with break evens at 12.71/17.29, and has delta/theta metrics of -10.62/1.99.
The rather unfortunate thing about BIDU is it's an ADR, so the precise announcement date and time is always up in the air until the last moment. That being said, the Sept 20th 95/100/130/135 iron condor is paying 1.46 at the mid (.73 at 50 max), has break evens at 98.54/131.46, and has -.17/1.82 delta/theta metrics. Naturally, I'd ordinarily like to collect one-third the width of the wings in credit, but it's hard to see what that will actually pay with markets showing wide in off hours.
BROAD MARKET
IWM (11/15)
EEM (7/16)
QQQ (6/15)
SPY (6/12)
EFA 0/11
VIX 12.16
Because of low implied in "local expiries" (<45 days 'til expiry or less), I've been going out a little farther in time than usual, taking advantage of implied volatility term structure,* which currently slopes from longer-dated expiries into this current state of affairs, (See RUT Iron Condor Trade, below), with the small added bonus being that longer-dated expiry implied volatility tends to expand less relative to shorter-dated implied volatility in the event of a "local" volatility pop, which is the usual concern with selling premium in low volatility environments. Naturally, I'm not going all crazy with these longer-dated setups, but staying small and keeping powder dry for more favorable volatility metrics in shorter duration expiries.
SECTOR EXCHANGE-TRADED FUNDS
Top Funds By Rank: GDXJ (78/35), GDX (53/29), SLV (48/20), GLD (39/12), TLT (25/10), SMH (25/24), USO (23/32), XOP (20/30).
GDXJ continues to have ideal exchange-traded fund metrics of >70 rank, greater than 35 implied for premium selling ... .
IRA TRADES
I pulled the trigger on a couple of "not a penny mores" last week in XLP and XLU. Suffice it to say, I did not get stellar credit collection/cost basis reduction for these, since we're far away from the prices at which I want to acquire, but will look to roll out on weakness and/or in increased volatility. It's either stick something out there and get paid to wait or wait for lower and get paid nothing ... .
HONORABLE MENTIONS
/NG, UNG: Natural gas is around 52-week lows here. Generally, I look for a seasonality play where "peak injection" has historically set up, but it's generally a crap shoot as to where that will occur (that pesky Mother Nature), and it's usually later in the year. I'm watching it, but won't get particularly excited to enter something bullish until we break 2.00. Ideally, I'm looking to get in at around that 2016 low ... .
* -- You can see this in RUT, with August implied at 15.3%, September at 16.1%, October at 16.7%, and December at 17.6%.