SIG trade ideas
SIG Bearish inclined naked calls 21 Oct expiry
Whats The Plan/Trade/Thought
This trade rides on retails overall tightening as a reaction to the Fed and the Global central banks raising their interest rates
Risk Mitigation
The action at entry shows the price testing the bottom S&R line. I think we can expect more bearish movement from retail but otherwise we have enough space to the strike
Imagine Yourself Taking The Other Side
This trade is simply following the larger market movement. SIG has had good earnings and I believe is a pretty decent company. So going long is an option just not when the overall market is bear
Look For New Information
No new information
How Do I Feel Now
I feel normal, a bit affected by the other trade ICLN. But we do what we can and take what the market gives us.
Trade Specs
Sold 160 Calls @ 0.25
Strike 70
30.24% to Strike
BP Used: 87k
Max Gain: 3250
SIG - Structure Similarities Structural similarities can be seen in green boxes which both follow a nice double bottom
Further upsides may be seen
SIG Bearish inclined naked calls 15 July expiryWhats The Plan/Trade/Thought
Signet Jewelers is a retailer of diamond jewellery. With the concerns of the recession, the cooling signs of the job market, layoffs in tech and the overall retail leadership cautiousness during the earnings. I think this is the right direction especially since it is following the larger market direction
US retail sales also post the first drop in 5 months as auto purchases plunge and inflation bites
Risk Mitigation
Have two S&R lines before my strike at 69.49 and 65.35. If price breaks 69.49 (7% from strike) will have to start closing this position
Imagine Yourself Taking The Other Side
It just feels dangerous to be bullish especially since we have seen days where all sectors are red
Look For New Information
No new information
How Do I Feel Now
I feel confident about this trade
Trade specs
Sold 110 Calls @ 0.5
Strike 75
29.33% to Strike
BP Used: 66K
Max Gain: 5.5k
SIGnot the sauer kind tho, theoretically gems should increase in value with inflation and stagflation so well see how this plays out, i would start to buy in the $30 range
Expecting CorrectionWe have opened a broad window this morning. Now we are watching a star. This may indicate an attempt of the bears to take profit(as I have also just done) in the very short run.
Another New HighI have been expecting a retracement downwards. But we've got a new high instead. This means that probably the year end rally on jewellery is beginning.
Another New HighThe new highs are little one only. However they are not sold imediately - a sign that there is more buying power than bears. Chrismas is coming definitely.
Range LeftWe have exceeded the trading range lasting since 2nd September now. As the Christmas Season is approaching the stock seems supported fundamentally.
Signet Jewelers: Cup & Handle Tgt Near $106Stop: $77
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SIG ATH BreakoutNice gap into uncharted territory.
Look for a backtest of the breakpoint before momentum continuation.
Setting sights on $95 per share.
$SIG Breakout Entry, lost position too earlyGreat entry at open (market order wouldn't even fill!) big volume, squatted and stopped at at 1R. Should have at most set to breakeven and rode it out. Don't be too afraid of breakouts that squat.
SIG - Valentines PlayTechnically, I see an ascending triangle going into a gap straight thru to $49. Technicals aside, this is a great social trade. They make affordable jewelry, and that's something I'd like to play for Valentines day.
$SIG Signet Breakout Targets
Attempting to break above the 0.236 Fib which would be a major step forward for the stock.
Targets as per the chart , with particular attention on the Gap fill.
$SIG Signet Jewelers Bullish Targets
Targets for continuation in SIG as per resistance levels.
50MA is our stop loss level.
MACD attempting to reverse
Histogram about to turn positive
Stochastic in bullish trend.
GAp fil the main target
SIG - LONG ideaHHs HLs
Long term uptrend intact
nice little area of consolidation
R/R = 2:1
look for a break thru $28.68 and first problem area will be overcome - I would view that as very bullish i.e. add more
Short the hell out of this scam pumpeverything posted on the chart- short with confidence and set strict stop loss
