X Trend BounceX has bounced off the bottom of its trend line. It appears that the people who bought the stock for the dividend, have bailed and I believe the stock to be heading back to its up-trend.
X trade ideas
X Put sales- Which put sale do you like?There are few price levels I would be happy to be put to stock on US Steel. However, it's more fun to have those premiums in your account and not have to purchase anything. I like the $18 put sale exp 9/9 for .27 because of the labor day holiday I get on extra day of premium...but more importantly X would need to go down another 10% and break through support. Not impossible we shall see. 9/2 less time with a decent return. If you really want to be safe is the $15 put expiring 9/23 for .12 ... I would wait on that and see if X drops some more in order to get more premium. There the $16 level too ...Which on do you like?
X: US SteelX-is US Steel.
It is a component of-XME.
XME-has been weak for the past month.
I suspect the basic metals components in-XME (iron-copper-steel-zinc-aluminum) are weaker than the gold-and-silver miners.
For-X:
The indicator on the top of the page is RSI / Stochastic , and this is weak.
The top middle indicator is vortex and it is weak (red over green).
The Top (bar-type) indicator measures the "phase energy" of the stock , and this is weak, now below zero.
Until these indicators reverse to the upside, and the prices rise above the cloud, this stock is a sell.
Good luck to you. Don.
BUYING POWER EFFICIENCY: "POOR MAN'S" VS. TRAD COVERED CALLSThere is more than one way to skin a cat. But some ways are more buying power efficient than others ... .
Here, I'm looking at a covered call in X. The implied volatility is >50%, so I can get a bit of premium on the call side to reduce my cost basis in any stock I buy here. For example, if I buy shares at 20.38, and sell the Sept 30th 20.5 call against (for a 1.50 ($150) credit at the mid), I can get into the whole package for a 19.03 debit ($1903), my cost basis in the shares will be $19.03 per share, and my max profit is $147 if called away at 23. However, for some, that $1903 stick price can be hefty, especially if they're working with a smaller account. The drawback is that I'm (a) stuck with stock I bought at 20.38 per share; and (b) the buying power effect may be larger than I'd like.
In comparison, I can also do a PWCC or poor man's covered call. Traditionally, this is set up using a long-dated, deep ITM long call option to stand in for the stock and -- like the covered call -- a call sold 30-45 DTE. Most of the time, I set these up using the 70 delta strike for the long option and the 30 delta strike for the short. As with the traditional covered call, I'm looking to reduce my cost basis in my "synthetic stock" (here, the long option) by selling calls against. Compared to the traditional covered call, the PWCC has a smaller price tag -- $361 (which is also my max loss for the setup, assuming I do nothing at all), and I look to exit the setup as a whole at 10-20% of what I paid for the setup which, in this case, isn't as attractive as the $147 max profit of the covered call. However, there is one other aspect of the setup worth noting -- my buying the Jan 20th 18 call gives me the right to exercise for shares at $18. With the covered call, I'm locked in with 20.38 shares; with the PWCC, I'm not.
Short on XX has been getting crushed recently and has 1) broke through the EMA50 on a bearish plummet and 2) Traded down to a support. I will set my entry below the support with a target of around 17.94.
This analysis and idea is part of a trading challenge where I only indicate trades with the EMA50. I am doing paper trades and will not actually be entering with my own account.
United States Steel Corp.Demand zone on the daily chart at former resistance which should now act as support.
Entry: $21.72
Stop Loss: $19.69
Target 1: $25.00
X Bearish GapX Gapped down today pretty big. If you look at where it opened, anyone who has bought in the past 9 trading sessions started the day down. Could this cause people to close their positions on the day and bring us lower? I thought I was bullish on X until this happened. We will have to watch how the market reacts.
This idea and analysis is part of a 3-month trading challenge in which I am only using the EMA 50 to indicate trades.
Update status
X AnalysisWith a pretty indecisive day to close out the week X has been trading somewhat sideways, somewhat in a flag. If X breaks higher from this and can beat out the MAJOR resistance at around the 27.70 level, it doesn't have much resistance points to stop a run. If we break out of the 27.70 I will look more into diagramming possible trades.
This idea and analysis is part of a 3-month trading challenge in which I am only using the EMA 50 to indicate trades.
X Post Earnings AnalysisX is killing it after a big earnings beat. I would enter a bullish trade on X if it pulls back and maintains its bullish trend. It seems as though the EMA 50 might catch back up to the price and could provide support or become resistance on a cross. I will need to see more before I would have enough inclination to enter.
This idea and analysis is part of a 3-month trading challenge in which I am only using the EMA 50 to indicate trades.
OverboughtThe correction level of the decline since past September has been reached now. When you look carefully you will find the window to be closed in the current uptrend.
XME Components Analysis Number 5: X (U.S. Steel)I have recently published a series of bullish articles about-XME.
X-is one of the components of-XME. The strength of this chart speaks for itself -
It is one of the metals stocks which is contributing to the strength in-XME.
XME-is the-SPDR S&P-Metals and Mining ETF-which offers broad exposure to industrial-and precious metals and mining, with a strong emphasis at the lower end of the capitalization spectrum. It holds 25 components in an equal weighted market cap.
I believe by showing you some of the individual components of-XME you will understand why I am very bullish towards the upward move in-XME.
Don.
Resistance Broken & UptrendResistance from April and May has been broken and a stong uptrend has begun. Reasons stated on the chart along with another chart linked to this showing an inverted head and shoulders.
X Breakout I.H&Sgoing long here on X after a nice inverted head and shoulders on key level 20$
2 targets on chart
X: Time to reshort has comeWe have a pretty clear shorting opportunity in X. I had succesfully shorted it before, you can see my previous post in related ideas.
Fundamentals weigh heavily in steel right now, and the technicals in this chart are compelling, so I reccomend entering shorts under 16.33, with stops above 17.10, and target at least a retest of the recent lows, but we could break under this zone as well.
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Cheers!
Ivan Labrie
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We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance0.57% on such information.
