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 and an On Balance Volume Chart for Visa Inc., noting that the stock has been in a price uptrend.
Today’s Chart of the Day is a Daily Price Chart for ProShares UltraPro QQQ (NYSE: TQQQ).
TQQQ seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the NASDAQ-100 Index. The index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.
Now, below is a Daily Price Chart with moving averages for ProShares UltraPro QQQ.
Back in June 2019, the TQQQ 1-Month moving-average crossed above the 10-Month simple moving-average (SMA) indicating TQQQ is on a PowerTrend ‘buy’ signal (circled).
After the crossing of the moving averages back in June, prices have steadily risen.
If you had purchased TQQQ shares when the PowerTrend ‘buy’ signal occurred for the stock back in June 2019, when the stock was around $61.77, you’d be up 72.24% by now.
Not a bad profit for a seven-month-hold of a major index ETF.
Now, as you can see, the 1-Month moving-average is still above the 10-month SMA. That means the bullish trend is still in play!
As long as the 1-Month price remains above the 10-month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to come back down.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On January 23rd, we highlighted Utilities Select Sector SPDR Fund (NYSE: XLU), noting that XLU stock had been making a series of higher highs and higher lows since November.
If you happened to have purchased XLU shares on that day, you’d already be up 1.4%.
But… if you had purchased the right option contract, you would be up 49.01% in just two week’s time!
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Not to mention, the service itself provides up to two trades every week.
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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 out the details if you haven’t yet!
Editor, Chart Of The Day