Hello Traders,
I am taking my first bite at my newest position. I have been stalking $WB for quite some time, wanting exposure to the Chinese "micro-blogging revolution".
If you want the fundamentals by the numbers you'll just have to look it up on your own. But the foundation of my fundamental screening in equities is based off of earnings growth... aggressive earnings growth. Both on a QoQ basis, and a YoY basis. And this company has positive YoY and QoQ metrics when it comes to the cash metrics.
Risks: One of my friends mentioned that Weibo along with MOMO (which fits my fundamental criteria for investment also) are being mentioned on CNBC and other mainstream media. I view this as a risk because the non-professional retail crowd starts piling in on a position. The retail crowd I'm referring to are the quote on quote "long term investors" which buy positions based off of what CNBC, FoxBusiness, etc recommends and then get shaken out of their over-levered positions a few days, weeks later... I prefer not to be entering positions at the same time the non-professional crowd piles into the same position.
The Trade: Depending on the price action the following days will determine if I make this a short term swing trade (2 weeks - 1 month) or what I prefer as a position trade (I use fundamental stops and a trailing 200 MA stop after higher highs / higher lows are printed on the chart). Main resistance is highlighted on the chart at the YTD highs. Also keep in mind the gap fill (55.70) as a profit taking area for shorter term swing traders.
Entry: The entry was based on a descending channel bullish break.
Stop: Stop has been placed slightly below the lows of the descending channel's rounded bottom.
Trade smart, and with a plan. Cheers guys! =)
I am taking my first bite at my newest position. I have been stalking $WB for quite some time, wanting exposure to the Chinese "micro-blogging revolution".
If you want the fundamentals by the numbers you'll just have to look it up on your own. But the foundation of my fundamental screening in equities is based off of earnings growth... aggressive earnings growth. Both on a QoQ basis, and a YoY basis. And this company has positive YoY and QoQ metrics when it comes to the cash metrics.
Risks: One of my friends mentioned that Weibo along with MOMO (which fits my fundamental criteria for investment also) are being mentioned on CNBC and other mainstream media. I view this as a risk because the non-professional retail crowd starts piling in on a position. The retail crowd I'm referring to are the quote on quote "long term investors" which buy positions based off of what CNBC, FoxBusiness, etc recommends and then get shaken out of their over-levered positions a few days, weeks later... I prefer not to be entering positions at the same time the non-professional crowd piles into the same position.
The Trade: Depending on the price action the following days will determine if I make this a short term swing trade (2 weeks - 1 month) or what I prefer as a position trade (I use fundamental stops and a trailing 200 MA stop after higher highs / higher lows are printed on the chart). Main resistance is highlighted on the chart at the YTD highs. Also keep in mind the gap fill (55.70) as a profit taking area for shorter term swing traders.
Entry: The entry was based on a descending channel bullish break.
Stop: Stop has been placed slightly below the lows of the descending channel's rounded bottom.
Trade smart, and with a plan. Cheers guys! =)
Trade active:
Price has fallen on volume with the rest of the market. I have exited 50% of the position as price fell below yesterdays lows and below the breakout support at $50.
This is something automatic I do and part of my risk management rules: If price trades on volume back below breakout support then I cut exposure by 50% as the probability of price trading down to the lows / stop is significantly higher.
This is something automatic I do and part of my risk management rules: If price trades on volume back below breakout support then I cut exposure by 50% as the probability of price trading down to the lows / stop is significantly higher.
Comment:
I still have a position in WB.
Price traded in a tight range (highlighted grey area) for 7 trading days. Yesterday price broke out of that short term consolidation with increasing volume.
Currently, price is approaching the $53.72 resistance level. Let's see if there is enough bullish conviction to push price above the resistance level on to test the YTD highs at $58.
Price traded in a tight range (highlighted grey area) for 7 trading days. Yesterday price broke out of that short term consolidation with increasing volume.
Currently, price is approaching the $53.72 resistance level. Let's see if there is enough bullish conviction to push price above the resistance level on to test the YTD highs at $58.
Comment:
$WB breaks out to a new weekly all time high closing on high volume. Earnings coming up soon.
Price well above Weekly Bar 40ma.
Price well above Weekly Bar 40ma.
Comment:
Comment:
Still long. #Trendfollowing
Still long. #Trendfollowing
Shorter term swing trades are usually completed / done on the 1HR chart. If I was trading this on a shorter term basis this is what it would look like.