IQ trade ideas
IQ on a FOMO inducing TearI got bull-trapped in IQ around August and after that I placed it on my "check once a month list" and so I missed the last 4 weeks of gains. I also heard about China moving to improve its liquidity problem and for some reason I didn’t start reading into that until just now. Normally I would be worried about FOMO’ing at the top but this clearly just started to move.
Fundamentally IQ got hit with the global quantitative tightening beatdown. With liquidity down internationally all bubble-stocks (FANG, Other tech stocks, real estate, crypto, etc) started popping. My linked post go over how QT has messed with both traditional markets and crypto so give those a read. First some news about China and liquidity (www.bloomberg.com)
China will cut the reserve requirement ratio and improve funding conditions this month, as liquidity tightens toward the Spring Festival holidays, the country’s largest securities firm says. Fresh demand for funds will amount to nearly 4.3 trillion yuan ($625 billion) in January, according to Citic Securities Co. and Bloomberg calculations. Mainland residents will withdraw 1 trillion yuan of cash in preparation for the holiday, when money is gifted in red envelopes. Corporate tax payments and maturities of lenders’ interbank debt will also mop up liquidity, prompting authorities to step up cash injections.
I don’t give a damn about red envelopes and holidays, I care about $625B inflating the money supply and IQ, which has responded fantastically. On the main chart we see that the price action created a C clamp on the cloud and that is performed well enough to get us a bullish T-K cross. That price action basically teleported the price action into the cloud once the point of control was breached on the volume profile. I expect a lot of action between the 0.382 and .0618) retracement levels (between $26 and 34 as we have two high volume nodes there. We might also test the POC one more time before a truer takeoff.
The short history and exponential growth make doing standard TA with the RSI and stochastics rather difficult as we cannot look for divergences on the 3d or weekly timeframe (and forget monthly) to see if one of these massive uptrends or bottoms is divergent or not. The MACD does help us identify a technical triple bottom and the ATR is at a yearly low so we can expect any movement to be very impulsive. Since we are out of room to impulse down that means we impulse up. Higher period moving averages are worthless at this point but we do have a bullish cross incoming on the 20 and 50.
Digging down into the 4h chart we see the 20-50 MA cross was all we needed for a fantastic upswing and the 20 was tested as support once and then we blasted off. The chart below really isn’t helping my FOMO.
subs mattertwo days closing above 50 EMA. 40 million shares short are starring at that chart pondering what went wrong. how could my thinking be wrong. i'll be right soon enough just you wait and see.
back on the planet earth "The number of total subscribing members was 80.7 million as of September 30, 2018, over 98% of whom were paying subscribing members. This compares to 42.7 million of total subscribing members as of September 30, 2017, up 89% year over year." Q3 reported
IQ long idea this week on the Falling Wedge breakout Trade talks are scheduled this week and China small caps have been getting heavy volume. IQ has also had bullish flow the past week. $28 PT
$IQ Ready for more gains! $20.50 - $22 Price Target 1-2 Weeks!$IQ has officially broken above a resistance and we have higher highs on the daily RSI. Fib extension shows possible break above $20. Earnings apparently Jan 30? China trade talks are heating up, and Chinese stocks are just beaten down in general. Currently own Feb 1 $20 Call Options.
short if breaks the neck line,, 14 targetmobile-text-alerts.com
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IQ long swing with some callsIQ finally breaking up out of its consolidation just below the previous IPO all-time low. A lot of volume coming in on Friday. Any retest I expect to be bought. IQ might gap up tomorrow with the after-hours activity.
IQ - Wedge ReversalBouncing off the bottom support line is a wedge reversal forming? I am expecting this stock to go up over the next week.
$IQ Ready for another runBottoming pattern almost complete
RSI on steady incline
First good buying volume seen in months
Must break 21.00 on volume to confirm the end of the downtrend
Although tariffs don't necessarily effect IQ directly, it is a big name Chinese stock. Expect a reaction.
IQ coming up on decision time!IQ is being squeezed waiting for confirmation of breakout or continued downside
IQ vs. NFLX: Identical IPO PatternsIQ if following NFLX's IPO price action. This can be seen throughout many of China's IPO's. Expect a sideways pattern into a breakout of some crazy magnitude. If IQ's breakout is identical to NFLX (740% Increase from the first bottom after the breakout), IQ Wave #1 = $380
IQ : Back in long for 134 daysSo I have left over put verticals 25/20 left over from legging and then hedging short puts in IQ all the way out to January. I decided to just go with a buy/write at the current price (just under 30) So I bought 200 shares and wrote 30 calls for 4.00 each......for a cost basis of 26 and downside protection at 25, which I will most likely take profit on the long 25puts and leave the 20s to either average down at or expire worthless in January. This will only give me a 13% return and is for a bit longer than most options traders prefer but works for me. I need the stock to stay flat or go up for 134 days. We shall see how things play out.
Long term TradeThis is the netflix of China. This company has great fundamentals and is worth the long term hold.
