KY6 trade ideas
IBKR. Long Interactive BrokersHaven´t checked a single line of company´s reports or any related news. I´m just trying to find a new broker and checking the charts one by one to see if the market will or not dump the shares.
I found IBKR may be a good buy as it bounced of the Hagopian Line and has been flat for several weeks now, underperforming the market. Notice also the price broke former, 2008, All-Time-High at 35.93 and has been consolidating above it since November 2016.
Will long on opening, targeting 56 per share. Another possible long entries are: 35 which is a weekly pivot and a strong support level or 40, on a confirmed range breakout. My SL will be set below last year minimum at 29.50
A trade for 2017...Banks -> Asset Managers -> ?? ==> BROKERS !
SECTOR THEME FOR 2017 ?
Main street banks flew first, and we are betting that asset managers will follow (LM, BX). And then what? The logical step down the sector will be the brokers: Smaller, less visible, less owned, yet sure to benefit from the pickup in trading volume of the bull market. They will be equally served (fundamentally) by any market consolidation, as volumes generally accelerate on the downside. IBKR is a leading independent online broker and is set to benefit. Set this plain-vanilla, long trade as one of the sector picks for 2017...
FUNDAMENTALLY IMPROVING ?
BAC highlighted recently that December had been one of the best months EVER for asset collection. This is bound to translate into the numbers of asset managers, and brokers. GS upgraded two of the main players of the brokerage sector today (E*TRADE and IBKR). Expect more upgrades to come. Expect good earnings and guidance, as earnings releases provide catalysts for the stocks to move higher. Technically, IBKR has been attempting to complete a very compelling Cup-with-handle (see long term chart below).
TRADING STRATEGY: PLAIN VANILLA LONG AHEAD OF EXPECTED BREAKOUT
Go long here
Target = $52
Stop = $32
R/R = 1.76x
IBKR nearing wave (iii) topI previously suggested that IBKR is slowly heading into a major top. Today it headed into the top of wave (iii). It may not be there yet, but this is one point where I start scalping against my primary position with put options. I'll scale in if we keep rising and scale out around $37
IBKR Wave 5 into primary topThis is my primary count into the primary top in IBKR. Fibs project into 58 and change. The top is based on fib and wave count on the monthly chart. The correction may only take us back down to 30 but should have a longer duration than the primary wave 4.
$IBKR Cup and Handle I think this is a great chart that is setting up breakout to the upside. There should be some resistance around the $44-45 range, but I do not think new highs are far away.
Interactive Brokers looks steady in troubled waterIBKR continues to look strong here just after reporting earnings.
