MAC trade ideas
MA in troubled skiesStory
March Retail sales surprise was -0.7% as they fell by 8.7%, that the largest drop going back 28 years. Manufacturing anther data does paint a pretty picture too. Low retail-sales activity is bad for companies that make their money based on consumer spending (transactions).
Mastercard, Visa, Amex and Discover all get a percentage cut (a small one) from the payments they process (Swipe fees) so lower spending can hurt their revenue.
Expectation
MA's Earnings on 29 Apr may not matter as much, if the market remain's in turmoil.
I am aim for 236 as Target
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I am so not a pro but a student of the financial markets. any feedback is welcome
MAI like the retrace into demand with MA here and think we can head higher and push towards 290+. I think this current demand zone will hold and provide a good base for it to rally. Not much supply after the initial supply zone that was tested today (well there is some).
I’ll watch for a move back up into supply and if we can clear today’s high, don’t think there should be any issues going right up to 290 - 300.
Mastercard trading thoughtsMA are currently hovering between reaction and rally, and could go either way. If the price heads up above 320, then the uptrend that ended on 19/2/20 at 344 could be resumed. If it falls below 280, then a downtrend will begin. Although there may be support around 270 (based on the prices between Sept and Oct last year), I will watch to see if this is in danger. If it is, then 220 could be next - over a three month period. Of the two scenarios, I consider this more likely in the current environment. My preferred trades would be a long put 3 months out with a strike around 250 or a debit put spread close to the money, same expiry.
Patience pays off after thirty years....How many can wait for a golden opportunity for a solid 30 years ? We are talking about Mastercard who has finally gained approval for a joint venture in clearing business with China's central bank. Read here .
While this is a B2B business tie-up, I believe Mastercard once gained entry to the China market would then be tapping the retail market. Perhaps, not its credit card but on its powerful payment network.
Like the S&P500, it enjoys a very nice bullish trend and one would have made more than 2500% returns if he holds this share since 2009.
Wait for the pull back and find a good opportunity to buy this great company.
Buying medium term with MAMy strategy is to combine several techniques at once:
+ Price channel and trend line: help me identify the direction of the price,
+ Supply - demand: help me identify the reversal position,
+ Elliott wave: help me determine the cycle of price,
+ Candlestick pattern and price action: Help me correct the position to the order.
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MA- rock solidNYSE:MA
MasterCard is a credit card company that operates a global payment processing network connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.
Top ETFs holding MA in their portfolios
SPY : SPDR S&P 500
IVV : iShares Core S&P 500 ETF
VOO: Vanguard S&P 500 ETF
IWF : iShares Russell 1000 Growth ETF
VUG : Vanguard Growth ETF
USMV: iShares Edge MSCI Min Vol USA ETF
XLK : SPDR Select Sector Fund - Technology
IVW: iShares S&P 500 Growth ETF
ITOT : iShares Core S&P Total U.S. Stock Market ETF
IWB : iShares Russell 1000 ETF
Mastercard looks good on the charts. While it has had a great run and bulls have been on a roll, its getting close to the overbought zone.
I have rolled out on the charts various important levels on the charts that may be important levels for future support/ resistances to look out for in the future
Since Mastercard is at all-time highs, we need to look for signs of exhaustion or change of uptrend, if any.
From our our perpesctive, we need to see that our trendline is respected (represented by the blue line. Also, prices should find support at 2 identified levels in 2020. These are $ 316.18 and $309.47
A close below these levels may warrant us to relook at the charts, else all should be well
We will relook at charts regularly to see how this pays off
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Cheers
MA: What's in your wallet?What's your credit card number? Pass it up. Kidding
I don't need anyone's CC, buy this for the upside and you're very welcome. MA (along with V and AMEX) got a great favourable news after Phase -1 deal sign up. This will see 320-322 before earnings. We're playing this in Slack room.
gl