VRT trade ideas
VRT to see ATH before topping?So this seems to be going against most forecasts at the moment, but it looks too good to not consider. How I see it, we are in an impulse wave, and have started wave 5. Now full disclosure that I am not an expert (may just be a beginner) at Elliot waves. But so far as I have read, we look to be checking all the requirements of the impulse wave, which makes me believe, we are in wave 5 and headed for an ATH:
Rule 1: Wave 2 is not retracing the whole Wave 1.
Rule 2: Wave 3 is above wave 1
Rule 3: Wave 1 is the shortest wave of all the major waves
Rule 4: Wave 4 is not coming in the territory of Wave 1
Rule 5: Wave 5 is more than 38.2% retracement of Wave 3
Rule 6: Wave 5 is the extended wave of all the impulse wave
Rule 7: Wave 2 and Wave 4 are obeying the rule of alternation (price, time and pattern alternation)
I would love an Elliottician's take on this though, so do give your comments.
Vertiv Spikes 14.6% On Earnings Report Vertiv ( NYSE:VRT ) has ignited a market frenzy with its stellar earnings report, soaring 14.6% to unprecedented highs. While Vertiv ( NYSE:VRT ) isn't a direct player in the artificial intelligence (AI) sector, its pivotal role in providing critical infrastructure for data centers positions it at the forefront of the AI revolution.
With a staggering 79% surge in earnings and a remarkable 60% increase in organic orders, Vertiv's performance underscores the exponential growth in demand for data center solutions. This surge not only bodes well for Vertiv but also signals a broader trend in the AI market, benefiting tech giants like Nvidia (NVDA), Super Micro Computer (SMCI), and Broadcom (AVGO).
As AI applications continue to proliferate across industries, the need for robust data infrastructure becomes paramount. Vertiv's ascent reflects the indispensable role it plays in supporting the backbone of AI technology, positioning itself as an essential player in the digital transformation era.
Investors eyeing the AI sector should take note of Vertiv's meteoric rise, recognizing the symbiotic relationship between data center infrastructure and AI innovation. With Vertiv at the helm, the data center boom offers a compelling opportunity for growth-minded investors seeking exposure to the AI revolution.
Technical Outlook
Vertiv ( NYSE:VRT ) stock is up 14.36% trading above the 200-day Moving Average (MA) with a Relative Strength Index of 64 indicating bullish momentum and room for further growth.
I will short VRT in the second half of FebruaryI plan on initiating a short position few days before or after earnings (Feb 21):
- price is overextended (daily, weekly, monthly)
- long term resistance trend line broken to the upside with ease but not retested yet
- retail activity extremely high
- retail sentiment extremely bullish
- Put/Call ratio highly in favor of Calls
BUT in the past few days, as the price increased, more Put contracts were opened
meaning that some investors started building short positions while retail traders continue to buy massively.
I would love this to:
- continue to increase until earnings, in this case I will short before earnings announcement
- see an insider selling shares, which would increase my confidence in this potential short
If it corrects before earnings, I will short any pop that happens after the earnings announcement.
I keep an eye on:
- the 55 level
- retail activity and sentiment, I would like them to be as high as possible by the earnings date
- insiders activity
- options open interest
VRT a run up into earnings?VRT has been on a tear lately and they are expected to have good earnings. Vertiv Holdings, LLC Class A Common Stock is expected to report earnings on 02/21/2024. Not financial advice, DYOR...
This is the facts according to Zacks.com
Vertiv Holdings Co. (VRT) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned +24.5% over the past month versus the Zacks S&P 500 composite's +6.5% change. The Zacks Computers - IT Services industry, to which Vertiv Holdings Co. belongs, has gained 11.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Vertiv Holdings Co. is expected to post earnings of $0.53 per share, indicating a change of +89.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.74 points to a change of +228.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.22 indicates a change of +27.6% from what Vertiv Holdings Co. is expected to report a year ago. Over the past month, the estimate has remained unchanged.
$VRT Flat Base Breakout?I traded NYSE:VRT about 3 weeks ago on the break above the declining trendline shown on the chart. It had a lackluster move, so I closed it out for 1.12 profit per share over a 2-week span, too slow for me.
Yesterday saw a lot of buying on big volume. I wanted to wait until this morning to see if there was going to be any follow through. Yes, it happened so I have started a new ¼ size position with the day low as my stop. With all that volume I am looking for this to be a sustainable breakout, but I have that stop in case I am wrong. If I am correct, I will look to add on any pullbacks to the moving averages.
Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
2023 True Market Leader - Does it has more potential? VRT has been up more than 200% since late April 2023 bottom, demonstrating key true market leader characteristics in terms of price advance, volume profile and fundamentals.
Look at how well and orderly price was following along the 8 EMA and later 21 EMA since the break-out from a large 195 days base (with two unfilled gaps first in Apr and in later in May).
On the fundamental side, one my notice:
Exceptional relative strength to the SNP500;
Top EPS and IBD Composite Index;
Triple digit growth in analyst estimates for EPS for 23 and double digits for 24;
Jaw-dropping triple digits earnings growth for 3 qrt in a raw;
Continues double digits sales growth;
Improving ROE;
And doubling amount of institutional sponsorship by Sep23;
Management owns 10%
I don't have reliable ElliotWave pattern on VRT, but from the market symmetry concept, I see the next important macro resistance zone at 47-51 area, where 47 is the 100% extension of the move from the bottom of 2020 to the top of 2021.
The history of true market leaders teaches us, that the stocks the doubles and triples have a higher historical odds of doing it again in the next bull-cycle.
It this correction in the indexes is over and the general market has a plan to continue its advance in Q4, my thesis is that VRT shall continue being the top choice for the growth investors and trader.
Trading parameters:
actionable if price breaks out the 39 pivot with volume. Short-mid term long thesis is wrong bellow 36 and fully invalidated bellow 35 areas.
VRT: Bullish Pennant, Confirmed (69,24%)(30/1000)(29/1000)
Bullish Pennant pattern on the weekly for VRT. Confirmed
69.24% possible gains.
VRT is part of the S&P industrial sector which is currently building a huge ascending triangle. Not confirmed yet though.
Pros:
1- PPS above 50MA and 200MA
2- RS above 0 and climbing
3- R/R ratio above 5
4- 250RSI above 50 and climbing
5- 50MA above 200MA
6- Both 50MA and 200MA ascending
7- Golden cross circled in blue
8- Descending volume during pennant forming
9- Volume during post forming
10- ATR ascending, more volatile
Cons:
1- No volume increase at break out
Target price is 58,02$
Stay humble, have fun, make money!
MAAX
VERTIV HOLDINGS CO OfferHey guys, VERTIV HOLDINGS CO is in a fake bearish push with a strong sell volume issued and a kind of upside down hammer candle. On the TIMEFRAME M1 we see a hammer candle with a fake sales volume it will go towards its last lowest. Who is outside the stabilization zone make their trend reversal to come back to test the base. Then the VWAP and access the top of a compression zone in order to go to the top of the zone to check it.
Great possibility of breaking out the price with the return of purchase volume at the same time the zone to arrive in another and to climb on the next high. Before the breakout of a stabilization zone to reach the top of the bullish channel and the symbolic number of 22.00 is required.
Please LIKE & FOLLOW, thank you!
VRT breaking out - Peaking it’s head above 20!Vertiv is a mission-critical supplier of infrastructure for data centers, communications networks & integrated rack systems, modular solutions serving: e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, and most interesting to me and defining of their future is their Internet of Things, and online gaming segments.
They just hit a new ATH on Jan 20th, slight pull back followed by support, forming what appears to be a cup & handle.
They beat earnings last call and are poised to do it again Feb 24th.
They received 1.7 million from US Gov last year and are off to half that amount already granted by US Gov for the year 2021; this amount will likely increase as progress is made and more awards are received based on good merits.
Vertiv is likely to benefit from the Cyber Defense Funding Biden has set aside.
This stock is a steal at these prices.
3/19 $22.50C buy under .75 expect a pop on earnings PT $27.25 should set SL $1.5 take profits above 2.5
VRT - Elliottwave analysis - 5th wave up VRT - It seems the 1st subwave of 5th wave up about to finish and will start 2nd subwave correction. so wait for 2nd wave to correct up to 18-17.40 for buy set up for next wave up, which will go above 19.50 or higher as the part of 5th wave up in 4 hr time frame.
Give thumbs up if you really like the trade idea.
