MOONSHOT - attacking the most violent stock on earth!
Updated
Qualcomm is probably the most violent stock on the planet. The resent trip to the moon was a result of the signing of a truce with Apple (APPL). Apple - the giant - had sued Qualcomm for $30 billion in an overcharging dispute. Qualcomm had fired back with a paltry $7 Billion counter-suit for lost payments. They settled their dispute and investors went into a frenzy.
But have a look at this chart on any time frame. It's not just about the recent lawsuit. I've never seen such volatility before, in all my years.
So - how does one exploit this. Volatility is supposed to be essential to making money in markets - right? Errrh.. so why is this one gonna scare a lot of people?
The problem is in finding entry and exit positions! Those with keen eyes, have a look at the amber ATR indicator. Nearly every time there is a Grade A trend switch, $$ should flash in your eyes! It then becomes simple. The trend could decide your entry and exit points! No predictions!
Now the challenge is to find a suitable trend switch on the recent moonshot! Note the folly of shorting on ridiculously high or low RSIs. On this chart the RSI peaked most recently at 95.
But have a look at this chart on any time frame. It's not just about the recent lawsuit. I've never seen such volatility before, in all my years.
So - how does one exploit this. Volatility is supposed to be essential to making money in markets - right? Errrh.. so why is this one gonna scare a lot of people?
The problem is in finding entry and exit positions! Those with keen eyes, have a look at the amber ATR indicator. Nearly every time there is a Grade A trend switch, $$ should flash in your eyes! It then becomes simple. The trend could decide your entry and exit points! No predictions!
Now the challenge is to find a suitable trend switch on the recent moonshot! Note the folly of shorting on ridiculously high or low RSIs. On this chart the RSI peaked most recently at 95.
Note
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
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