Square earnings: Amid CFO’s exit, confidence boost is needed
Square Inc. remains one of tech’s highest fliers this year, but shares have taken a beating recently amid economic concerns and the impending departure of the company’s very visible chief financial officer.
That puts even more pressure on the company’s third-quarter earnings report, which is expected Wednesday after the market closes.
Square SQ, +2.19% shares are off 22% from their late September closing high and investors will be looking for reassurance about the resilience of the company’s lending business and about the transition that will take place once CFO Sarah Friar steps down from her post at the end of the year.
Square shares rise after Citi upgrades ahead of earnings report
Citi is getting more bullish on Square, citing the payment company’s growth potential and emergence as a player in banking for next generation consumers.
Today's Trade of the Day | 11-7-18
XLNX traded into a perfect bullish pause after a solid gap and momentum move higher. Looking deeper into the pause I especially like the price action because of the bottoming tails. Each time price tried to trade lower, buyers stepped back in. A good sign for the bulls.
Game planning a new swing trade long using a $86.50 buy stop to enter the trade. Stop loss on a close below $85. Looking for an initial profit target of $95.25. We could see a run at $100 if the stock market gains steam after the elections.
Stocks to Trade | Wednesday Edition 11-7-18
Bullish Cash Flow: MYL, USFD, MOS, MNK, NTNX, BHC, AET, YUMC, LRCX, SBUX, NXPI
Bearish Cash Flow: nktr, etsy, lly
New 20 Day Breakout: USFD, MOS, MYL, MNK, NTNX, BHC, AET, YUMC, WRK, SBUX, MCD, IP, WBA, DKS, RHT
New 20 Day Breakdown: penn
Double Normal Volume: PX, MYL, OXY, MAR, MNK, SPLK, DXC, AET, NVS, NKTR
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Tape Reading the SPY ETF
The stock market hates indecision and the uncertainty finally lifted with the mid-term elections out of the way. Stock futures are pointing sharply higher (7 am) but you can't buy today without a plan. Today's stocks scans show too many important "market stocks" in clear selling order flow. To put this tape reading insight in to trading terms, we see bear flags.
So what's today's game plan? The higher opening is good for the bulls and if it can maintain the buying pressure those short, need to cover. Which means they need to buy to exit, which fuels more upward momentum.
If the bulls blink and can't hold the bid, the bear flags triggers and the bears gain control of the order flow. It's not a high percentage trade to be long bearish order flow, but you can trade for cash flow using lower time frames for your trend.
Today's game plan requires monitoring the last price from change from the open. In other words the color of the daily candlestick. If it turns red, don't be long despite the gap higher. If it stays green I plan to stay long into the close and hold for a bigger swing.
Am I hedging? You bet your ass. The market isn't obvious so you need a solid "if-then' plan. That's what professional traders do. The market is fluid so you need to adapt.
To be clear...you don't change your strategy, your edge... you adapt how you plan to use it and your trade management.