HOME34 trade ideas
this is why #technicalanalysis is so important in #stockstradingWe all know that good stocks, by nature, tend to go up in the long run, but how many times you lost money although being right? How many times you took a bad entry just because you rushed it?
Technical analysis and patience are key skills if you want to be profitable.
In this chart, HD broke the falling wedge pattern right at the SMA200 support, which reinforces the long term BUY signal.
HD Buy SignalHD peaked at $207.31 on January 26th and proceeded to selloff with the broader market, to a closing low of $171.80 on March 23rd (17%). At the closing low, the 10-day RSI was 29 vs. 23 on the higher closing low of February 5th, setting-up a positive divergence. The peak RSI between the two lows was 49, so using that as a confirmation, HD signaled a "buy" on Thursday, March 29th with a closing RSI of 50.
-- Roy
HD - Weekly Option Expiry of 4/6/2018 BullishNaked Put (Bullish)
Symbol: HD
Current Price: $174.76
Option:
Write
Option: 6th Apr $170 Put
Price per Option: $1.02
Contracts: #20 x 100
Total cost: $2,040
Estimated returns - HD at $174.76 on 28th Mar 2018
Entry cost: $2040 (next credit/now)
Maximum Risk: $337960 at a price of $0.10 at expiry
Maximum return: $2040 at a price of $176 on day 6th Apr 2018
Break evens at expiry: $169.00
*Will watch Price Action rest of this week and into next.... if Price Action goes south will or under $169.00... will take corrective action.
HD- Bullish To $190+One of the key HD (Home Depot) insiders has on 3/2/18, just bought 6,650 shares. Watch for more insider trading soon. This is a positive sign, for traders to buy HD or write covered calls ($190), if you understand how too and have money to cover 100 share lots of HD stocks too. Fib. retracement on chart hit and went up from 0.786 area, on daily chart. Please do future research, if interested in this idea. Knowledge is power and to successful trading.
HD trade setupHD breaking support and heading to the 200MA.. I like this for a swing trade but might make it tomorrow.
Home Depot Long52W RANGE - $144.25 - $207.60
MARKET CAP - $212.8B
AVERAGE VOLUME – 6,060,986
BETA – 1.14
DIV YIELD – 1.91%
PRICE/BOOK – 83.66
P/E – 25.26
EPS – 7.21
EARNINGS YIELD – 5.07%
In December 2017, Home Depot set out new long-term financial targets, which are highly likely to be achieved in fiscal year 2020. HD reaffirmed its financial targets for fiscal 2020 while it updated the return on invested capital target to reflect the impact of the Tax Reform in 2017. HD expects total sales in range of $115-120bn, with annual compound growth of 4.5-6%. On top of this the company now expects a return on invested capital to be more than 40% (previously 36.4-39.6%) – this reflects the positive impact of the new tax reform. The company plans to accelerate investments in the next three years to enhance shareholder value and mainly it’s customer’s experience.
HD has been gaining from its focus on professional customers (pro customers). Recently, the company has also acquired Compact Power Equipment which moved another step forward for their pro customers portfolio service offerings.
Risk wise – the only concerns would be the inflated P/E ratio against the sector and S&P 500. Macroeconomic problems could be another risk – harsh credit access. Home Depot’s main threat is LOW with its competitive pricing, expansion in aspect of location and the quality of merchandise.
NeroTree Capital rates Home Depot Inc as a BUY with a price target of $190.
Home Depot Inc.In this boring Sunday, a provocation on Home Depot.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity and good cash flow from operations.
However there is an aspect that caught my attention, Home Depot has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs.
The stockholders' equity in 4Q has significantly decreased by 67% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop shortly.
It occurred immediately to me they have to pay $27 million to settle allegations in California that the retailer illegally disposed of hazardous waste and tossed customer records without first rendering personal information unreadable.
$27 million is nothing for Home Depot, assuming they are the only to pay...
Will HD follow WMT's lead? Short HD.WMT and HD are important parts of the S&P and the S&P 'delta long' trade of the past several years is becoming unglued.
The gap down in WMT was significant. See HD's mid-day 'evening star'.
HD doesn't look doneI see room to run to 210 before significant resistance. No reason to fight this trend at all.
Home Depot (HD)Seems overbought. Waiting for it to retrace back to support (181.00). Then watching to see if it falls below or moves sideways or bounces. Also, expecting it to come back to the 200 moving average and bounce at which point I would consider entering. At this point, I will make a buying decision.
I think HD is going to break out today or tomorrowTrendlines converged yesterday. Seems to indicate a move soon. Expect move upwards if support @ 183.23 is broken. I think it's worth between 186 and 189 today based on discounted earnings model. Model not well tested yet, needs a couple more quarters.
