SQD trade ideas
Tips For Buying DipsFirst of all, dips happen all the time. There are always pullbacks in price and they happen for various reasons. Here’s a checklist I quickly wrote down for myself. The chart here shows Square, mostly because it has been on an epic run! Congrats to those who have enjoyed it. I was once a proud owner of this name, but sold after it seemed to get a little "frothy." Feel free to share your thoughts in the comments after reading my tips for buying dips:
1. Always know why you’re buying now and not waiting patiently. Why is this the dip to buy and not another one? Take the time to do all the research you need.
2. You should do enough research to explain why now is the time to buy to anyone. And it should be understandable. Sometimes writing it down helps. Being able to explain it in a simple format is equally important.
3. Have a plan. Know where you will exit if it comes to that. Because that does happen. The old saying plan the trade before you make the trade. It's way too tempting to just rush in and buy without any regard for the necessary plan.
4. Sometimes a dip can turn into a correction or crash. Reminding yourself of this can slow down any impulsive actions. That's really the key here. Avoid impulsive buying. I have done this many times in my career and it has rarely ever worked well.
5. Find technical indicator that works well for you. Learn to love it. Study it. Understand why and what it does. It can be a handy tool to confirm your process or look for the conditions you want. On this chart I am having some fun with the open source script Moving Regression Prediction Bands . I like scripts like this because it's using statistical method to show price anomalies.
6. I also like using the Price Range tool to measure the percentage change in the dip. And compare it over time. I've listed three corrections on this chart. The key is to get a sense of where price has come from. Others might use fundamentals and wait for certain ratios to align, for example an attractive PE ratio or something like it. It’s up to you, but having a trusty tool can be of help.
7. Timing the markets is really hard. You can also view dips as a time to lower your cost basis in your favorite positions or as a potential way to swing trade. But once again, that's probably something you want to define *before* diving in.
8. The saying “Never risk money you can’t afford to lose” is especially true in dips and volatility. Additionally, if you are looking to buy a dip, there's no reason to buy all at once. Take your time. Wait... Wait...
9. Look at your account history and study your previous trades in similar times. Learn what's worked and what has not.
10. There are no easy answers to markets, but using the right tools and following some basic risk management principles can be of help. That's the key point to this post.
Hope you found it interesting. They are a few rules I have in mind. Please feel to share your own in the comments. Or even better, publish your own idea. I will try to do this again as well. There are some other topics I look forward to adding to this post.
Perfect Bullish Divergence - a bounce trade with callsThe white arrows and green lines show the divergence between price and RSI. If you see bullish divergence at a support area - 234-233 is a daily support - you can buy stock or calls for a low risk trade. Risk is low because you are entering close to a low that should hold. In this case price retreated from 238 but has not broken 233 again.
In this case, options are expensive today because VIX is up, and the premiums are too high if I go out in time. So I bought weekly 240 calls with price around 233 and sold them when price moved up to 238. In this trade an overnight hold was too risky for me, even if I think price may go up tomorrow.
When I buy on divergence, I have to accept that price may fluctuate as it bottoms. Price may also move up to a moving average resistance and then reverse. On one hand the option price may fluctuate more, but if support holds then there is a quick option price increase on the bounce.
To use divergence well for day trades, it is especially important to know when you will take profits, and submit your limit orders. Even if you are watching the chart you have to be ready to act. Look a the 5m chart and see the move from 233 to 238, then notice how quickly price sold off and got stuck below 235. The market was heavily bearish so today profits need to be taken quickly on calls. Without a plan ready, you risk staring at the screen as profits disappear. In this case, the extra selling pressure near end of day could have pushed price below 232 and you would be stuck hoping.
Divergence-based trades are excellent for long calls/puts, but you have to know if you are trading against the bigger timeframe trend, then take your profits quickly (at least partial) and have your stop losses and/or exit trades ready.
Can SQ close the $265 gap? I say absolutely!Greetings All,
SQ completed a 78% retrace from its ATH of $283 recently. There is also support at the 50% retrace ($242) as evidenced by the volume traded on that day (it was an earnings day) and the outcome of the candlestick. I anticipate SQ will close the $265 gap in this week’s candle, however SQ may retrace back to support ($242) before doing so, in an attempt to close the minor gap between $242/$250. MACD looks promising.
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
SQ on watchSQ has pulled back to a buy point at trendline support and 618 fib. May react well to strength in BTC and slight pull back in the banks due to weakening yields. Trade is dead if price breaks recent low.
Square headed to ATH'sSquare down day last Thursday had buy signals written all over it. Which is exactly what I did at 233. Square bank, cash app, and their bitcoin investment! What more can you ask for. Jump on the boat before it takes off.
Weekly puts in SQ for price drop Square has gone up and up. The red lines mark selling (price pullback) that matches RSI peaks. I am looking for the same to happen here. Buyers rushed in before earnings, then stock went lower, and today price is chopping at 254-256. Buying seems exhausted and more people may book profits soon
I am looking for price to stay below 257 and head down to 248-250, maybe 243-242. Sometimes these moves happen overnight. By using less capital (small position) I can comfortably hold overnight, absorb theta decay, and allow option price to fluctuate with stock price.
You can look for an entry on 5/15m chart. I bought weekly 250 puts this morning. Will sell most today and will hold only 1-3 contracts overnight.
SQ - 100B Market Cap -> 500B SQ has always been a favorite of mine, and today I am publishing the Idea that SQ will be a 500b Market Cap within 1 year.
-Malongs
SQ above previous local resistance turned supportSQ should see copious bullish uptrend here onwards, as every time it breaches 20EMA up-trending - it proves to be a good buying opportunity. Plus previous local resistance of 246.50 has now turned support (will confirm upon a retest)
Square breakout after earnings dipMy publish is late, but I made a call on SQ last Thursday during the market bloodbath last week. Bought with both hands at 233. Square's bank, cash app, and bitcoin investment is about to send this thing to 300 +
I use the company app, and love the stock here. Afterhours had some price action jumping 10$ and would signal a breakout in the stock heading higher from here. Well, see tomorrow at open if the gains carry over from AH's.
Square to $250 possibly $280?simple wave impulse correction every high was broken validating trend other confluences are fib levels I could see it drop as low as 88.6 if it drops pass $200 then the idea is no longer valid
Buying Opportunity. Target: $253Greetings All,
SQ appears neutral-bullish based on the following:
1. SQ has retraced and consolidated around a key-level of support (180days) around $230, which is the 61.8% retracement from resistance (all-time high) of $283.12. I anticipate SQ will bounce upward from this level.
2. SQ is slightly below the Monthly and Quarterly EMA, which I consider an opportunity to go LONG.
3. MACD indicates bullish strength.
4. SQ will close the $275 GAP in the future.
5. SQ beat earnings ( +141%) on the 24th.
Strategy:
1. Target the 20 VWMA ($253)
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
SQ Chart UpdateI've never posted a chart for SQ nor have I traded it, but it has a decent chart to take a glance at here.
Bearish under $240 supply area coinciding with 50day MA; bullish above
Opinion Only -
Square Support line Square is by far one of my favorite stocks of 2021. With the recent surge in Bitcoin the price and market of Square has exploded. Square ran up to $270, hit its resistance point and is now falling. Square has been in a really nice uptrend ever since the march crash. SQ price at close was $230 with a support line at $220 and $217. I see Bitcoin coming down to a price of 41,000 and this 3k fall would help SQ which is affect by bitcoin to come hit that support line. After bitcoin hits 41k I see it retuning to 50k and that once again would help SQ run up to a target of $300.
$SQSQ LOOKING TO RECOVER SOME AFTER THE MARKET SELL OFF.
THOUGHT THE EARNINGS WERE PRETTY GOOD BUT WITH THE MARKET ROTION IT MAY TAKE A WHILE TO GET BACK TO MARKET HIGHS. ALSO AS BIT COIN IS A LARGE PART OF THEIR BUSINESS IT MAY STAY DOWN A WHILE UNTIL BIT COIN STABILIZES A BIT.
REVERSAL IS NOT CONFIRMED YET AND STILL WATCHING. MAY CONTINUE TO BE PULLED DOWN BY THE MARKET.
THIS IS NOT FINANCIAL ADVICE AND IS POSTED FOR MY RECORD.
Buying the DIP - Fintech is still applicable.Nothing has fundamentally changed in light of the recent tech sell-off. We are trading the strong monthly channel at bargain prices yet again. Play the cycles. Long.
last sq analyst didn't go as 100% planned.If SQ falls below the support it could hit another support around 200 and form a new support, or it could just bounce off resistance.
SQ getting sqaured awayThe payment processor allowing crypto trading and will report earnings later this month.
As always, our bread and butter at flightschool is choosing the ideas with decent risk/reward ratio.
Based on PYPL's performance we could have a decent move to the upstide on SQ.
