Square (SQ)Square has been an absolute beast to say the least. As long as its above $140, the next target is $212
SQ
GDDY Getting Ready for SQ Type Move..!Looking at the charts side by side...GDDY is set to break a multi-year resistance similar to SQ. Not sure of trajectory, but SQ is at about 280% from March lows...so GDDY has about 200% upside on the break pricing it around $250
It sounds crazy I know...but what is up anymore.
SQ SetupRSI and MACD Bearish Divergence
-Sold off once but keep an eye on levels if you're long
-If long need to watch for demand to increase or prices will pull back and kill premium.
SQ Swing/Long SetupBearish divergence on the MACD and RSI to watch with going long but SQ has been respecting this channel for a while
Square will melt up to $160+ on strong earnings. $SQ has $BTC$SQ will easily exceed earnings. Don't forget that Square owns Cashapp and makes a killing off of the commission from Bitcoin purchases. Rising $BTC = more cashflow and profits for Square.
Review of SQ PlayThe daily gap fill area is at 137 which lines up right with the beginning of Demand zone. Possible new Long Entry
Ark NextGen Internet ETFPrice has not been able to close below the 20ema since early April. It has tested it 4 times; today is the 4th test.
Taking into account the measured move from the past times we tested the 20ema, it should take around 7 trading days to get to the sell-target.
Happy & successful trading,
dorfmaester
SQ PennantAfter pulling back into its channel, SQ is coiling in a pennant before earnings next week. A blowout could see breakout from pennant with continuation likely above $150. I am long SQ stock and calls, short SQ puts.
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.
$SQ another shot at ATHThe last time I posted about my entry in $SQ I got stopped out. However, I am planning on entering again because it has shown strength (look at how it has bounced off its 21 EMA at every test).
It is also consolidating into a tight bull flag and looks prime for another run at its ATH. Earnings are on August 5th.
$SQ runup before earnings?After a pullback from ATHs it's been consolidating nicely and holding the 8EMA.
SQ 133 break?!?!?SQ fell out of the up trend. RSI was overbought and it corrected itself. Inside candle on Friday, showing some consolidation on the 1 day chart. Would not play until it breaks and holds above 133. Last time it ran it just kept going, long calls. 135-145 will pay. Again though, 133 is resistance so monitor accordingly.
SQ 1hr outlooklast week SQ was flagging. I went long at $120 and added a second position today at $122. We broke the flag. I cansee $128-$129 region getting hit today
