$USB with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $USB after a Positive Under reaction following its earnings release placing the stock in drift A with an expected accuracy of 70%.
USB trade ideas
USB Bullish inclined Naked Puts 28 Jan Expiry (Jan Track 3)Whats The Plan/Trade/Thought
US Bancorp is an American bank holding company. With the Fed intending to increasing interest rates to combat the high inflation numbers. I expect banks to see an increase in their earnings from this especially near term where consumer sentiment is still bullish.
Already the Nasdaq bank index is up around 32% for the year
I Feel
The market in my opinion is in a bearish range. With drops being deeper than the recoveries. USB and a number of the financial counters like MET, TFC, BK, BAC are in a similar price pattern. Mostly near the bottom of their range.
If the range continues it will also be aligned to my near term POV on the banking sector
Imagine Yourself Taking The Other Side
On the flip side as I do feel we are market wide in a bearish sideways movement. Having USB drop and break the range is also a possibility. Will need to monitor this. Also the price action since 25 Oct 2021 has been bearish.
Imagine Yourself As A Neutral Observer
This trade is really not about up or down but really about trading on the lack of expected volatility. Do we expect defining movements in Jan?
Look For New Information
There is an Earnings release on the 19 Jan that I only realised after I entered the trade. This is very careless of me... I will need to be vigilant during that period. But generally earnings in the past three quarters have beaten estimates
How Do I Feel Now
Somewhat lukewarm with my decision. I believe the uncertainty is due to the 19 Jan Earnings I did not notice. Also while the daily chart is showing a range and I am reacting to it and not predicting a bottom. I am still apprehensive as it can break the range.
Trade Specs
Sold 160 Puts @ 0.25 - Strike 51
% to Strike 10.14%
ATR % is 94%
BP used 81K
Max Gain: est $3896
Cup and handle $USB USB has several things going for it here.
- Big ole cup and handle, we are testing the top of the cup now.
- Handle was a perfect downtrend, we broke above downtrend
- Now consolidating above breakout and just below ATH
- Financial sector has been hot
- If we break above consolidation highs I will enter
$USB: Monster setupAll timeframes are setting up for a big move in $USB here, daily is kicking off a fresh uptrend after the recent bottom, weekly and monthly are about to trigger a trend as well, and by EOY the yearly will flash a 10 year uptrend signal which aims for somewhere between $220 and over $1600 per share by the year 2030. I think overall, the return vs risk proposition here is tilted significantly in our favor to buy both speculative swing positions, as well as potential long term positions too.
Keep a close eye on this setup, might be extremely rewarding and it is extremely low risk considering the potential upside at hand...
Cheers,
Ivan Labrie.
$USB projected with a bearish outlook following its earningsThe PEAD projected a bearish outlook for $USB after a negative under reaction after earnings release placing the stock in drift D
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US BANCORP Perspective DailyHey traders, US BANCORP is in a bullish movement with low volume traded and a bear char. In the TIMEFRAME M1 we see a bull hammer candle, high chance of launching on the next high. Who is on the TIMEFRAME H4 as well and if the buyers are there to close the bearish breakout gap. Which is 42.10 to 42.25 and on the TIMEFRAME 15Min 42.10 to 42.23, which is half of the median.
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Is it really a harmonic pattern or a price action trend?The vertical lines describe the daily time line better for forecast the future price, however I think we need more candles to assure that what is going to happen next.
In my opinion, the price is at the end of the wedge right now and there could be a possible bullish position hiding in the bottom again scene we’re at the bottom price at all time.
What do you think?
