Been in $WUBA calls over multiple months and strike prices. Looks like $WUBA is ready for its next leg as old longstanding resistance became the new support this past week.
Note the weekly chart; from resistance to support :0)
NYSE:WUBA
WUBA
Going long WUBA Tuesday morningWUBA is printing a bullish hammer candlestick over candlestick price bar right off its uptrending 50 DMA with my momentum/trending oscillators confirming the price move. I am going long WUBA Tuesday morning using a limit (GTC-BUY-LMT) order @ 72.00. I will have two trailing sell stops (GTC-SELL-STP) @ 68.14 and 65.15 to protect my initial invested capital in case WUBA does not move higher immediately. I am expecting a measured move similar to all or part of the previous uptrend from February '17 - November '17.
WUBA testing its 50MA + uptrend lineWUBA looks like it's bouncing off its 50MA + uptrend line... playing long side... with a stop!
$wuba breakout on LTFhigher time frame is in defined uptrend finding support on trendline
intermediate time frame is showing a range-bound consolidation with price action pressing up against resistance of the .50 retracement level of 43.50
lower time frame is showing a breakout and minor pullback of triangle continuation pattern
rsi on intermediate time frame is showing positive divergence
looking for a move up to the .38 retracement level of 44 .3x - 44 . 4x area
THE WEEK AHEAD: EARNINGS AND A PERSISTENTLY LOW VIXIf you're going to play anything next week premium selling wise, it's going to be in earnings, because that's all that's really out there volatility-wise. The VIX remains persistently low here, and running a screen for exchange-traded funds with >70% implied volatility rank, and >35% implied volatility yields absolutely nothing.
Here's what showed up on my radar -- some sketchy ADR action (WUBA), a little bit of frisky biopharm (BCRX), and some beaten-down brick-and-mortar retail (M, SHLD, JCP):
WUBA (99/56) (Online Retail): It's scheduled to announce earnings on Thursday (2/23) (Short strangle/iron condor).
BCRX (98/287) (Biopharm): Earnings Monday (2/27) Before Market Open. (Short puts, short straddle). This is biopharm, which -- in itself -- should serve as a warning. You may want to do a bit more due diligence on this one than you would ordinarily, since they can explode, but also implode.
DKS (98/48) (Sporting Goods/Retail): Earnings are three weeks out, but I thought I'd put it out there since it's nearly ripe for play implied volatility rank/implied volatility wise. (Short strangle, iron condor).
M (96/49) (Department Store Retail): Earnings Tuesday (2/21) Before Market Open. Because we have a long holiday weekend here, with the markets being closed on Monday, I've probably missed an opp to play this one unless there is high vol afterglow post earnings. (Short strangle, iron condor).
SHLD (93/127) (Department Store Retail): I don't see that this has earnings up, but it's in the process of imploding. (Short puts, short straddle).
BBY (93/47) (Retail): Earnings 3/1 Before Market Open. We're still a ways out from earnings, so like DKS, nearly ripe ... . (Short strangle, iron condor).
HTZ (92/73) (Car Rental): Earnings 2/27 (Monday) After Market Close. Another one that's ripe right now. (Short strangle, iron condor).
JCP (88/65) (Department Store/Retail): Earnings Friday (2/24) Before Market Open. Another beaten down brick and mortar retail issue. (Short puts, short straddle).
OCN (85/70) (Financial): Earnings on 2/22 (Wednesday) After Market Close. (Short puts,short straddle).
