When the Trend Line Crosses the 200 EMA

When a trend line crosses the 200-day Exponential Moving Average (EMA), it can indicate a significant shift in the market or stock's trend. The 200-day EMA is a widely used technical indicator that helps identify the overall direction and strength of a trend.

Here are a few possible interpretations when a trend line crosses the 200-day EMA:

1. Bullish Signal: If a rising trend line crosses above the 200-day EMA, it suggests a bullish signal. This indicates that the price has gained enough momentum to break through the long-term average and may continue to rise.

2. Bearish Signal: Conversely, if a falling trend line crosses below the 200-day EMA, it signals a bearish trend. This suggests that the price has lost support and could potentially decline further.

3. Trend Reversal: A trend line crossing the 200-day EMA could signify a trend reversal. For example, if an uptrend line crosses below the 200-day EMA, it might indicate a shift from a bullish to a bearish trend, and vice versa.

It's important to note that no single indicator should be used in isolation to make trading decisions. Traders and investors typically use multiple technical indicators and analyze other factors such as volume, support and resistance levels, and fundamental analysis to confirm and strengthen their conclusions.

Lastly, interpretations can vary depending on the specific chart, timeframe, and market being analyzed. Therefore, it's essential to consider these factors and apply appropriate risk management strategies when making trading decisions.

The Stock Market vs Compound Interest of a Savings Account

 

The stock market and compound interest are different concepts, but they can both be related to investing and wealth accumulation. Here's a comparison between the two:

1. Nature of Returns:

   • Stock Market: The stock market involves buying and selling shares of publicly traded companies. Returns in the stock market can be highly variable and are based on the performance of individual stocks or the overall market. They can be positive, negative, or flat, depending on various factors such as economic conditions, company performance, and investor sentiment.
   • Compound Interest: Compound interest refers to the interest earned on an initial investment or deposit, which is then reinvested to generate additional interest over time. Compound interest is typically associated with fixed-income investments such as savings accounts, bonds, or certain types of financial products. The returns from compound interest are more predictable and generally increase gradually over time.

2. Growth Potential:

   • Stock Market: Investing in the stock market offers the potential for significant growth and higher returns compared to compound interest. Stocks of successful companies can appreciate in value over time, and investors may benefit from dividend payments as well. However, the stock market also carries the risk of losses and market volatility, which can lead to fluctuations in the value of investments.
   • Compound Interest: While compound interest may not offer the same level of growth potential as the stock market, it provides a more stable and consistent return on investment. Over long periods, compound interest can accumulate and compound at a steady rate, helping investments grow steadily over time.

3. Risk and Volatility:

   • Stock Market: The stock market is inherently more volatile and carries a higher degree of risk compared to compound interest. Stock prices can be influenced by numerous factors such as economic conditions, company-specific news, geopolitical events, and investor behavior. The value of stocks can experience sharp fluctuations, and investors may experience both gains and losses.
   • Compound Interest: Investments that earn compound interest are generally considered less risky than stocks. Fixed-income instruments like savings accounts or bonds offer more stability as they provide a fixed rate of return. However, it's important to note that certain types of investments offering compound interest may still carry some level of risk, depending on the issuer and prevailing market conditions.

4. Time Horizon:

   • Stock Market: The stock market is often associated with long-term investing. Investors who have a longer time horizon, such as several years or even decades, can potentially benefit from the compounding effect of reinvested dividends and capital appreciation.
   • Compound Interest: Compound interest can be effective over both short and long periods, depending on the investment vehicle. It's particularly advantageous for long-term goals, as the compounding effect becomes more pronounced over time.

In summary, the stock market offers the potential for higher returns but carries greater risk and volatility. Compound interest, on the other hand, provides more stability and predictable growth, although the returns may be comparatively lower. Both strategies have their merits and can be utilized based on an individual's financial goals, risk tolerance, and investment horizon. It's important to carefully consider your personal circumstances and seek professional advice when making investment decisions.

What does EPS Trend signify about the earnings of a stock

EPS Trend is without a doubt is one of the metrics I always check before going into and earnings based Call. This is just a quick post to show you why. This was another post that was generated from your DMs on Instagram. So feel free to reach out.

EPS (Earnings Per Share) trend is a measure of how a company's earnings have been performing over a specific period, usually a year or a quarter. An EPS trend signifies the direction and momentum of a company's earnings growth or decline over time.

If a company's EPS is trending upwards, it means that its earnings are increasing, which is generally considered a positive sign for the company and its stock price. This could be due to factors such as increased revenue, cost-cutting measures, or successful product launches.

FIVERR UPWARD EPS TREND 90 DAYS - NOW:

On the other hand, if a company's EPS is trending downwards, it means that its earnings are decreasing, which could be a cause for concern for investors. This could be due to factors such as decreased revenue, rising costs, or market competition.

An example of a downward trend. This is Disney (DIS) stock from 90 days till now Oh and they report earnings today 5/10/2023 after close.

Investors often look at EPS trends as a key metric for evaluating a company's financial performance and future growth potential. It's important to note that EPS trends should be analyzed in the context of other financial metrics and industry trends to get a complete picture of a company's financial health.

No one has a crystal ball to how the market may move but having and using the right tools and metrics can have you make informed decisions that will payoff.

Palantir Smashes on Earnings year long profit forecast Stock Surges 28% After hours

Palantir's income for the quarter expanded 18% year over year, and its U.S. business income became 26%. The product organization, which is known for its work with the public authority, said its U.S. business client count expanded half year over year, developing from 103 clients to 155.

The organization detailed its second-at any point quarter of positive net gain on a GAAP premise, at $17 million, and in a letter to investors, Chief Alex Karp said the organization hopes to stay beneficial "each quarter through the year's end."

Last quarter, Palantir denoted its very first quarter of positive overall gain on a GAAP premise, at $31 million. "This is a critical second for ourselves as well as our allies," Karp said in a delivery at that point.

Palantir said it hopes to report between $528 million and $532 million in income during its subsequent quarter and between $2.19 billion and $2.24 billion for the entire year.

Karp likewise said the interest for Palantir's new computerized reasoning stage is "unprecedented." The organization's artificial intelligence stage permits business and government areas to utilize huge language models in view of their own confidential informational indexes, and it will be accessible to "select clients" this month.

"We have previously had many discussions with possible clients about sending the product and are as of now arranging terms and evaluating for admittance to the parts of the stage," he composed.

Karp said that in light of the fact that computerized reasoning presents "genuine" gambles with Palantir's product is planned considering human contribution and oversight. All in all, simulated intelligence can not freely do focusing on tasks in a tactical setting.

"The machine should stay subordinate to its maker," he said.

The organization will hold its quarterly call with financial backers Monday at 5 p.m. ET.

What does Implied Volatility mean on a Call Option

Implied volatility is a measure of the market's expectation of the future volatility of the underlying asset, based on the prices of options contracts. In the context of a call option, implied volatility refers to the level of expected volatility that is implied by the market price of the option.

A call option gives the holder the right, but not the obligation, to buy the underlying asset at a predetermined price (the strike price) on or before a specific date (the expiration date). The value of a call option is influenced by several factors, including the price of the underlying asset, the strike price, the time until expiration, and the implied volatility.

Implied volatility represents the market's perception of the likelihood of significant price movements in the underlying asset over the life of the option. A higher implied volatility implies a greater expected range of price movement and therefore a higher likelihood of the option reaching the strike price before expiration. As a result, a higher implied volatility generally leads to a higher price for the call option. Conversely, a lower implied volatility implies a lower expected range of price movement and therefore a lower likelihood of the option reaching the strike price, resulting in a lower price for the option.

Bank Stocks rebound sends the Market Higher

May 6th 2023 - NEWS

U.S. values finished off the main seven day stretch of May on a high note as portions of local banks bounced back after their significant selloff on Thursday, and Apple (AAPL) revealed solid benefit and deals. What's more, April work development was more noteworthy than expected, albeit the expansions in the past two months were amended descending, raising hopefulness that the work market might be facilitating enough for the Fed to quit raising loan fees. The Nasdaq flooded 2%, while the Dow and S&P 500 were over 1% higher. The present development assisted the Nasdaq with posting a fragmentary increase for the week, while the Dow and S&P 500 were down.

Territorial bank stocks took off, with portions of Zions Bancorporation (ZION), Comerica (CMA), and KeyCorp (KEY) ascending by twofold digit rates. PacWest Bancorp (PACW) shares soar 81% subsequent to losing half in the past meeting. The bank stocks got a lift from positive remarks by a JPMorgan Pursue examiner.

Everything except one stock in the Dow was an in certain area, and 22 had shares that were up over 1%. The normal was driven by Apple, with shares rising 4.7% as its outcomes were supported by surprisingly good iPhone deals. Portions of Chevron (CVX) added 2.5%, and portions of other oil makers took off as well as rough fates took off 4%.

Live Country Diversion (LYV) shares bounced 15% after the show advertiser revealed record quarterly income. Expedia Gathering (EXPE) shares acquired as the web-based travel website set a record-breaking high for housing appointments and beat deals gauges. Portions of Carvana (CVNA) took off after the web-based utilized vehicle retailer cut free and gave a hopeful benefit viewpoint.

Lyft (LYFT) shares tumbled 19% after the rideshare organization's ongoing quarter direction was shy of expectations. Solid Power Frameworks (MPWR) likewise had a deals viewpoint that missed assumptions, and its portions drooped. Portions of Epam Frameworks (EPAM) fell on the computer programming company's more vulnerable than-expected second quarter and entire year conjectures. Intel (INTC) was the main stock in the Dow to lose ground.

Buying Calls that expire the same day

There is a lot of money to be made in buying calls that expire the same day.

THE THEORY:

Buying a call option that expires the same day can potentially provide benefits such as:

1. Lower cost: Options that expire on the same day typically have lower premiums, or the price that an investor pays to purchase the option, compared to options with longer expirations. This can make it more affordable for investors to speculate on short-term price movements.

2. Quick profits: If the underlying asset's price moves in the desired direction, the value of the call option can increase rapidly. This can allow investors to make quick profits in a short amount of time.

3. Limited risk: When buying a call option, the maximum loss that an investor can incur is limited to the premium paid for the option. This means that investors have limited risk exposure compared to buying the underlying asset outright.

THE STRATEGY:

So with that information out the way i am going to show you how i made 20% on TSLA using a particular strategy. The was done today May 5th 2023 and while it is risky I will show you all the tools and resources I used to pull this off.

1. I use different resources to identify a Call on TSLA that expired today to get my strike price and check the volume. I want a 4 digit volume or better.  This only works on stocks that are very volatile so TSLA is perfect. See My previous post.

2. I then use the 15 minute chart on Trading View to check for an upward trend and draw my line to the anticipated price mark.

3. I then find and buy the call on Robinhood and check to make sure the Greeks are looking good.

4. I set my alert for the price mark and I get out once it hits the mark. 

5. I try to stick with My 20% profit rule and not get greedy. 

For stocks like TSLA this works on a Friday but others like SPY have more than one expiration day for the week.

THE RESULTS:

THE CONCLUSION:

However, it's important to note that buying options with very short expirations can be risky and speculative. Options with short expirations are more sensitive to changes in the underlying asset's price and can quickly lose value if the price doesn't move in the desired direction. Therefore, buying a call option that expires the same day is generally considered to be a high-risk, high-reward strategy that should only be used by experienced traders who can manage the risks involved.