SWKS trade ideas
SWKS broke a Fib Fan support line todayAAPL suppliers are not looking good at all. Tariff concerns killing the sector.
SWKS going back to test highsUp on earnings, down on earnings... analysts still upgraded this stock. Don't see it breaking now out but we could test $110-$115.
Chance of double bottoming at $86 is still on the table in the future.
Short SWKS I hope everyone has had a great Monday.
Skyworks Solutions -1.91% is a semi-conductor company that is traded on the NASDAQ. While I wouldn't normally bet against the semi-conductor industry, this, I believe is a quick short for easy gain.
Trade war tensions have been high and will likely remain high until a deal is struck with China over what President Trump has dubbed a "massive trade deficit." While many economist and pundits scratch their head at this proposition (trade deficits are not necessarily bad, as it allows Americans to purchase more goods at what will be a lower price), it is not important who is right or wrong in a trade war/skirmish, but instead to focus on what will happen in the short term because of the actions of these countries.
That brings me to Skyworks, a company that in regular times I would not never short with a ten-inch pole. Now, however, is the perfect time to bring on the short army.
The main and nearly only reason for this call is a simple fact: SWKS -1.91% currently getting 80% of its revenue from China.
If a trade war were to break out, having this much exposure (whether China pushes heavy tariffs or not) will send this stock tumbling.
For this short position I believe in 2/3 main targets.
1. $93
2. $86
No hold below the $86 threshold would be advisable.
Again, this is a high-risk, high-reward trade.
Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate any positions in SWKS -1.91% within the next 72 hours.
SWKS head and shoulders bottomSWKS head and shoulders bottom looks poised for a breakout with a target in the area of $116.00
SWKS - Possible Bearish Swing TradeI am considering taking this Bearish swing trade on SWKS. One thing I worry about is if I am triggered into the trade SWKS just recently bounced nicely off of the 20 EMA. If I get triggered in Monday or Tuesday, most likely the 20 EMA will be just below my entry. I sort of would rather have SWKS move sideways a few days allowing the 20 EMA to move above my trigger price. Obviously, I have no idea if the trade will work out in my favor or for that matter if I will even be triggered into it but I really like how the price action looks when I view the hourly chart. To me, it looks pretty weak.
Earning playSWKS has been strongly correlated to AAPL; the former's earnings play is an overcrowded play but I give it a try via SWKS, which is undervalued (compared to the overall market). Nonetheless I'm keeping a tight SL.
SWKS - Double bottom divergence on major supportSkyworks Solutions (SWKS) has double bottom stochastic divergence on a major support trend line. A quick backtest shows a nice reaction to divergences.
Buy: 96.86
Target: 99.22 - 103.04 (2.44% - 6.38%)
