MCD
McDonalds dilemmaThe 99% of the global population love McDonald's burgers, but that's not my concern. Basically, this company has been working aggressively on several initiatives to shed its image of an unhealthy, junk food but in fact, it is... and if they want to improve margins and consequently, earnings... is very hard to get it in the short term. Over here you will find a massive divergence because Wall Street and I have different targets. Wall Street points to $183 a share and I am pointing to $146 - $139.
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$MCD Overbought at Resistance$MCD Overbought at resistance after announcement yesterday of corporate labor cuts.
Assuming 171.10 resistance holds by close today, expecting a retracement back to atleast 167.00-168.00 level by the end of next week.
Ideally would like to see a close today at or below 171.10.
MCD - A 16% Upside PotentialHere are some quick fundamental facts -
Net income has been increasing for the past 3 years.
Operating margin has been increasing for the past 3 years.
Total cash flow from operating activities have been falling for the past 3 years.
Both ROA and ROE have been increasing for the past 3 years.
Dividend has been increasing for the past 3 years.
Latest Current and Quick ratio at 1.84 and 1.54 respectively.
Overall, the fundamentals on MCD look strong.
Coupled with the recent fall in price, it might be a good time and opportunity to start accumulating into MCD.
Looking to long between 153 to 155, with stops below 150 and a target at 179.
Disclaimer - this is not a trade call. Ensure you have proper trade and risk management plan before engaging the financial market.
MCD: LONG - Correction overdoneTHIS IS FOR NOTE TAKING PURPOSE ONLY.
MCD fell sharply on 2/5 following soft forward guidance. Price guidance still at 170.
DAILY Chart:
- Formed bottom on 3/5. Price @ all time low @ 146.84, MACD Histogram @ -.6560 compared to 2/5 where price fell to $153.86, MACD Histo @ -1.2298 =>Bull Divergence
- 3/9: MA(4) cross-over MA(9) , MACD HISTP Crossed centerline to +
4 Hr Chart confirms Daily Chart trend.
MCD Inside day long opportunity.So yes, the pull back that many investors had been waiting for over an year finally came,
although it's way harder than people may expect, it still create many trading opportunities for both bulls and bears.
Here I got this MCD trade , after it's 15% pull-back it gave an inside day, and I would like to long if it's able to break to the upside.
Let's see how it goes!
Would you like fries with that Dip?Fat America is still alive and well.
Last I checked the Fed isn't hiking the Burger rates.
MCD continues to perform and even if we see some flatness and downside in the next couple weeks this is still a good buy.
Bearish on the average Joe's ability to choose proper sustenance
Bullish on burgers and fries.
Also check out KO for a nice cheap beverage to quench your thirst for green candlesticks.
October 24 Earnings: McDonalds - The Rise Of The WageMcDonald's comparable sales will be aided by continued investments and menu innovation.
Alongside above mentioned factors, its international presence with a softer USD will aid overall margins.
However, with rising wage growth and soft quarterly restaurant spending globally, I expect profits to be under pressure.
Guidance should underwhelm with the aforementioned factors.
I am starting McDonald's with a $150 PT for the post-earnings move.
A tight stop well over ATH at $170 is advised.
MCD Bat, demand zone and 150 fig combinationWhenever there is a huge uptrend, those who are not willing to chase high price always say that they'll wait for pull back.
While there are still people contradicting with themselves that when a pull back actually happens, they change there mind and think,
"the uptrend is over , this is the top!!!!" and starting shorting the stock.
This makes no sense to me, as I'm always willing to chase high with acceptable risk and set-up, and if it did give a pull back, I'm more willing to long.
This is the case for MCD, or even for the stock index.These years, too many people told me that they may wait for pull back to long SPY,
but when a small pull back happens like the past few days, they change their mind to take the short and believe that's the top..
Plan your trade and trade your plan, and don't change your mind that easily !
JNJ, a 75 cents risk daily bullish Bat Pattern. (MCD FTF trade)Both of JNJ and MCD are stocks that I want to have in my retirement portfolio, they are typical stocks that worth the easiest buy and hold strategy.
While it doesn't mean they are not tradable at all,since if I don't really want to risk 10-20% for a mid-term investment, I may turn to some tiny risk short-term trading opportunities.
Here JNJ got a daily bat pattern with a suggest entry near 130.30.
Also, 130 fig support itself is usually strong enough to rely on, so I would like to buy off the support with this 2 strategies' combination.
JNJ is a stock that worth more than 10% risk, if I can trade it with only 75 cents risk, I can trade much much more shares if I'm willing to risk the same amount of money. (for sure I won't risk as much though)
Of course less rooms mean lower winning percentage, and being stopped out in such a name with such tiny risk sounds silly.
While my purpose for day-trading is always to create longer term swing positions, and I don't mind if the trade failed as it's the risk I'm willing to lose, and it will be very good positions if the trade succeeds.
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On the other hand, the MCD 160 breakout is another trade that I'm very willing to get involved.
It has tried several times and consolidate a lot in front of it , which should accumulate much power for the breakout. 156.95 might be a good out for the swing trade with 162.95 1st kick.
160 level could be a intraday FTF trade (I believe no one knows FTF trade, since I invented it lol)
FTF trade: find a 5 minute or 15 minute out for the day traders who trade the breakout , put a buy limit 1:1 to their risk, put the out to the previous pivot low in the given time frame.
EX: if the potential out is 159.80, the 160 breakout's risk are 20 cents, so FTF trade will put a buy limit @ 159.60.
*the potential out is the out day traders may use if they are involved with the breakout, so think about where they will put the out to find the potential out.
Logic:
If the 1st try of the breakout fails, the traders who traded the breakout will be stopped out and it created extra, unnecessarily selling pressure that causes slippage.
The people who can benefit from the slippage are the people who already put their buy limit there.
It's a trade that I invented after suffering slippage a lot and I tried several times back then I day-traded a lot.
MCD. McDonalds: Daily chart setting bearish divergencesMCD has been raising alongside the market but, while the whole market (as well as XLY fund) added around 30% since 2016 lows, MCD was only able to push up a half of it.
On one side, the stock potentially is underperforming but technicals say it has a very strong resistance to break. Daily chart shows bearish divergence, same as Weekly timeframe, and we are very close to the Median Line of the Fork.
I believe shorts are welcome once the price goes to a double-top formation in 132-134 area. SL can be set at 136.5 with TP1 at 121 and TP2 at 111