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JerryManders
Feb 22, 2024 12:26 PM

Rally to 58 (+20% upside minimum) Long

Wayfair Inc.NYSE

Description

W had earning before the bell, I've been waiting for a break above 51.70 to go long - looks like we'll get that pre-market 2/22.

Breakout level = 51.70 (breakdown level and hard stop loss = 47.36.

- Initial target = 54.50 by 2/23
- Goal target = 58 by 3/6/2024

** If it breaks above 58 then upper target range will be 66-69 by 3/15.

~Since W is highly shorted, a squeeze could carry it a lot higher than 66-69.

Comment

Once this breaks above 51.70, if you enter long the dotted black upsloping line is the trailing stop loss.

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The 66-69 range is what I'm using as my bullish expectation when entering calls, but if the squeeze really ignites when this makes a higher high (above 69.66) then it can continue to 70-82 by end of March 2024.

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and.... we're off to the moon

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Entered W Mar 15 58 calls for 2.17 (52.85 underlying, 10:00am 2/22)

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I'm also playing RH as a stock correlated to W but with a lot more volatility - same exact chart setup.

I entered RH Mar 15 285.00 calls for 4.00 (underlying 259)

- RH initial target is 285
- Goal Target 305
- Can extend as high as 330 by 3/15

Comment

last chance to add calls for a discount

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One last thing on the larger degree structure here - the setup is pointing to a 5 wave move mid term to 109 minimum (expect this level later in 2024). What I am playing here is the 1st of 5 waves to upper 60s - if it extends further, great.

Also picked up 100 shares here.

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Added calls. Following forecast exactly (black arrow/path).

We are about to make the next move higher after testing just above 51.70 (breakout level) for support. Looking real juicy here.

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Took profits on a third of my W position.

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Took another 1/3 off the W Mar 15 58calls for 3.90 (up 80% form initial position, over 100% from average price). Target 1 hit.

I'm keeping the remaining 1/3rd of position to let ride and see how high this can squeeze.

Comment

Calls at 5.45 and rising

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Sold another 1/3 of W position (calls) for 4.30 - 98% gain from original entry at 2.17. Keeping the remaining 1/3 of position open to see if it can hit 64-66 in the coming week.

I see near-term risk of pullback to 57-59 early next week Monday 3/4-Tues 3/5. This could cut the calls back down to around 2.70 before they rebound and with Mar 15 expiry theta will start to become significant factor next week - so just a heads up if you're still in full position take some profits before the close today.

Trade closed: target reached

Just getting a chance to send this update - I closed out my position today, should still have that chance tomorrow if you haven't yet. Target of 64-66 was hit tho so that was your signal.

Sold the final 1/3rd of Mar 15 58 calls for 6.50 (+200% gain on that portion of position; total return of 126% on full position).

I posted an update earlier in this trade that I was also playing RH Mar 15 285.00 calls for 4.00. I sold those today for 20.00 when underlying was 305 (it hit 311 at one point today). Return on the RH play was 400%.

All in all, felt good to make money on 2 trash companies. The W trade was a decent trade, the RH was a great trade.

Apologies for not posting this during the trading day, but good new is you'll have a chance to exit tomorrow - probably for better gains than I got because these 2 companies are mid squeeze and dangerous for shorts.

Peace.
Comments
kirkmara
Hello, thanks for the great info.. What was your win % last year and this year? Do you provide a service?
JerryManders
@kirkmara, No prob. I'll be providing a subscription soon - I'll notify when that is available.

Personal win % on trades since I developed my most recent trading system is 85% profitable trades, average return of 170%.
kirkmara
@JerryManders, Sounds good. Ill be waiting for it.... I went in that MSTR today, up 4%. This was based on your analysis. I didnt see you post an update yet though
ItsGengar
Another one! 💰
Lost2much
I went long with you and already up 40% on those calls. Thank you
dailyforex_1
pump!!
ukyuki
Didn’t follow but your call is well made!
Luck264
Why you are bullish on wayfair ?
JerryManders
@Luck264, easy money, its headed to at least 58 but likely higher to 70-80. Highly shorted so if it squeezes it has potential to extend to 109. Look back to its price action back in May 2020: that was all a squeeze it went from 20 to 300 lol. This time will be less extreme but can definitely extend to 109.
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