by Shane Ormond
On Feb 20, 2020
Shares of Groupon and Blue Apron tanked yesterday after their quarterly reports reignited skepticism about the companies’ “unconventional” business models. (And by “unconventional” I mean “doesn’t work.”)
Blue apron, groupon, e-trade, morgan Stanley
Blue apron, groupon
Yesterday, we looked at a Daily Price Chart of Agilent Technologies, Inc. and noted that the stock had been making a series of 52-Week Highs.
Today’s Chart is for iShares U.S. Financial Services ETF (NYSE: IYG).
IYG seeks to track the investment results of the Dow Jones U.S. Financial Services Index composed of U.S. equities in the financial services sector. The underlying index measures the performance of the financial services sector of the U.S. equity market.
The Daily Price Chart below shows that IYG has traded in a clear bullish pattern of higher highs and higher lows since mid-October.
Track the Price Chart from lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way.
These pullbacks present a buying opportunity for us.
Purchasing IYG after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.
We’ll keep watching IYG as it tops its previous highs and waiting for price pullbacks.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On January 2nd, we highlighted Direxion Daily Small Cap Bull 3x Shares (NYSE: TNA), noting that TNA had been trading in a bullish trend after its 1-Month Price had crossed above the 10-Month SMA in November.
If you happened to have purchased TNA shares on that day, you’d already be up 6.0%.
But… if you had purchased the right option contract, you would be up 54.31% in just three week’s time!
That’s the power of options.
That’s why we hunt for these kinds of opportunities in our elite trading and training service, PowerTrend Options. Choosing the right option can completely change your life.
In fact, that’s the whole thesis of that options service — the right trade has the power to set you on the path to living the life of your dreams.
But we know that some people like to walk before they run… and so we designed a class just for them, called the Thunderbird Options Course. Complete with syllabus, videos, and quizzes. Check it out if you haven’t yet!
Editor, Chart Of The Day