Tuesday
Wall Street Surprised by Dollar Tree NewsOn Tuesday, the news thundered, which surprised everyone, who has at least something to do with Wall Street. Dollar Tree stocks are falling.
At the moment, shares have fallen by 13%, which is an unprecedented loss for the company. Forecasts for the near future are the most disappointing. Nevertheless, the level of the falling is kept at the indicated level, which gives hope for an improvement of the situation, but will this hope be justified?
Today you can buy a share of this company for $1.08, which is a very low price. It was expected that in the same period, the value of the share will be at least $1.13. But the forecast wasn’t destined to come true.
An interesting fact is that both company networks (Dollar Tree and Family Dollar) increased sales by as much as 2%. But despite the joyful indicator, the situation is not so unambiguous, because in Family Dollar the margin fell. The products of these networks have some differences. For example, Family Dollar also sells goods at lower prices, which accounts for a significant share of the presented products. But be that as it may, the total net income decreased by 1.7% year on year, which makes us think.
Despite the fact that Dollar Trey isn’t so lucky this period, the revenue amounted to approximately $5.74 billion. At the same time, the expected revenue at better indicators should have amounted to $5.75 billion, which in fact isn’t such a big difference.
Recently, distribution costs have increased. Following the direct, obvious logic, we can understand that it was the increase in transportation prices that caused an increase in prices for goods. For the same reason, sales of goods that have lower margins have increased in order to patch up financial holes in other areas.
There have also been personnel shifts. The staff has been reduced, which isn’t a good sign. The company is forced to take drastic measures to stay in difficult times. However, in order to minimize financial losses and quickly return to the previous level, the company has everything that is needed.
But if we look at the Dollar Tree and its successes over the past year, then we will see that the company is developing quite rapidly. This year its shares rose 24%. There is a pretty good result. But how did they do it? The secret is very simple.
Dollar Tree investors supported all sorts of aggressive steps by the company, in order to maintain and increase the profit of the Family Dollar. Surprisingly, the aggressive strategy worked more than successfully, thanks to which we can observe tremendous growth in the company's shares. Some shops had to be closed, and some were rebranded, which benefited them. How did it happen? It attracted new customers and formed a new circle of interests that led to an increase in profits.
At the end of this quartile, the company has more than 7.800 locations. This number does not allow full rebranding, but the process is already running. The first steps definitely brought excellent results, so the company further plans to adhere to this strategy, hoping for improvements in its own position. And the company has every chance to achieve its goal, despite the recent fall in stocks, which was also caused by the aggressive policy of the company.
Surprisingly, the same strategy, under different circumstances, can lead to different results. It’s important to remember this when working on your own strategy. Nevertheless, it’s very difficult to predict the exact outcome in the modern market with its wars, because sometimes the income depends on factors that can hardly be predicted, so every businessman needs to be extremely vigilant. But all of us know that sometimes it’s impossible.
A quarterly forecast from the company has recently been released. This forecast can be called very optimistic because an increase in the value of the share is expected from $1.70 to $1.80. And yet, Wall Street had expected stock prices to be significantly higher. According to their forecasts, the share price should be $2.02. As it turns out, it will become known very soon, and therefore you just need to be patient and wait for the opportunity, because the current situation was very ambiguous, which means it is too early to draw conclusions.
And yet, in the fourth quarter of this year, an increase in the value of goods sold by $19 million is expected, which equals $0.06 per share.
And yet the main event happened today at 8:46 a.m. at the premarket. It was at this moment that the shares of the company fell by 13%.
Will the company continue to pursue the aggression strategy and will it help overcome difficulties? Will it continue to fall, and can one find profit in this fall? It’ll become obvious for most businessmen very soon. But while all this is only in the process, the most astute take risks and win, while others read about how others have achieved success.
Descending Triangle On BTCUSD (Long Bias)Hello Traders
Another Tactical Trading Tuesday at your discretion.
Here with a Descending triangle that has been in play for the past two months.
The trend held up very nicely thus far. Forming a solid resistance.
On the other hand support was also found on and around 9300.
So we are geared towards long direction with a breakout and continuation.
If the price projections (yellow arrows) don't play out as shown then the trade would be invalidated.
Trade safe Trade well
DXY: Tuesday Week11Hi Guys,
the scenario hasn't changed much since my last post. DXY still looking bearish into mid week11. FOMC meeting due tomorrow.
50SMA keeps pushing despite divergence with RSI. A,B and C are lower lows. RSI is making higher lows compared to price.
If the index re-climbs above 1000SMA and crosses the 50SMA for the upside at the same time, DXY may commence correcting week10 fall.
RSI still below 50 though and if bearish momentum picks up next stop could be week8 low.
IMHO in the 4H chart below options may be: A) a run towards 50SMA or B) a run towards 1000SMA
Thank you for your support and for sharing your ideas.
Don't forget to put a like if you appreciate the post and to follow me if you want to receive notifications on new and updated ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
VIX Spikes (Normal Spikes with Decay harmonic) VS NowA 2008 style VIX superspike is currently building into this market, It has not finished it's double top.
This is the same VIX analysis except the spike to the left is described in it's normal Double-Top with a 1,2,3 decay harmonic.
50/80 Double top can be realistically expected shortly ..
With it 1500 point drop in the DJIA could easily be expected.. And VERY shortly in 1-5 trading days..
USDJPY: Merry Christmas EveryoneHey everyone ! Im wishing everyone great holidays with their family and loved ones. Trading is done for me this year. Enjoy your free time with family and friends. Lets start fresh in 2019 with even bigger goals. See you guys there !
P.S. this will be the pair i will be looking at in 2019
Funnel Trading: A case for funnel break out on EURJPYHello Traders
Looking further into a choppy market indeed I present to you my tactical entry on EURJPY.
The price has been fluctuating within a funnel here on the 4h chart.
We are looking to position in a potential continuation.(looking at 128.000 round number as potential level)
Also note that this is the third time that price tested the funnel and broke it with some forceful downward momentum.
Please bear in mind that you should always place stop loss orders in every setup.
Trade safe, trade well.
NZDUSD: Long Opened TodayHey guys, here we go again.
Im thinking of publishing every trade i take here for a time from now, what do you think about it ? Leave a comment.
Today in US Market Session we entered a buy on NZDUSD. Above you can see our analysis on this pair on the 4h timeframe. Price formed a support zone (marked in the grey box) - even on the daily. The lowest low is a fake out with a divergence indicating a trend change. Trend already had 2 correction waves (marked in yellow boxes) and we are looking to buy the next wave up to the last high. Honestly, as i mentioned before, the daily looks good for a buy also, so maybe the take profit will be much more pips. Will keep you updated as always.
Stay safe.
Bitcoin: BTCUSD - Consolidating recent gains: Next Trade Point Bitcoin BTCUSD Tuesday Trade Points
Price action since Sunday's break out has been listless and
lacking any real direction. However there is still bull evidence
mounting - firstly it has not broken down completely after
losing the supporting dynamic yesterday, but has instead
formed a continuation pattern on top of yesterday's flag,
using the same lower parallel as support. That shows
underlying bullish intent is still present so far. But for that to
be confirmed we need to see it break above the upper
parallel - if we see it we can follow long again with stops
under the same parallel by 50 points or so once broken.
Until that happens and it remains within the pattern there is
no clear trade right now.
On downside, should the lower parallel of the continuation
pattern fail at any point today Bitcoin should start to fall
away further and becomes a short once more with stops 50 or
so above the central (of 3) parallel which lies at 8300 right
now.
At some point fairly soon we should get a signal worth trading
again. Until then Bitcoin belongs to the bots and day traders
trading between the parallels- and even they are finding it
difficult now. Patience. The next trade is getting closer by
the hour - we often see an upward burst at 12:30-15:00 as US
wakes up but we really need to see that upper parallel broken
for confirmation that Bitcoin is still positive and to follow long
again from here.
CAD/USD short set up for TuesdayCAD/USD Monday's DXY weakness hasn't done much to help CAD rally...DXY should bottom Tuesday at either 94.28 or 93.99 (down a further 0.2 or 0.5% from here) at which point all the Dollar pairs should start to fall away again.
Look to short CAD Tuesday as per short set-up on chart
DAX SHORT Monday and Tuesday.Of course DAX movement for Monday and Tuesday. Seeing that the DAX has been swinging a lot, I think this week, at least initially movements will come something more moderate. I think we'll start the bearish week, I put in red the approximate movement that I think made the DAX blue color and movement that take place on Tuesday. I do not know if there will be any fundamental news that could accelerate the movement but to give us an idea think Monday will start down to levels close to 10625 to have a small pullback to 10670. Then again down to levels of 10550 to make another pullback around 10620. level probably will close the session bullish Mondays. Tuesday will begin to decline more pronounced 10450 a pullback to levels close to 10620 to fall back to 10250. As always, it is a simple opinion and I am not responsible for any loss you may have someone to follow my directions. Enjoy and good trading.
RT for Cinco De MayoI believe $RT is ready for a pullback reversal 5-5-15
My levels are as follows
Entry: 7.25
Target: 7.75
Stop Loss: 6.90
Good luck and be safe