Here’s your update on $SHW and $LRXC…along with a new idea on $ETSY. – April 6, 2021
ETSY SHW LRCX
I want to look at Etsy ( NASDAQ: ETSY ) today.
By the way, the Sherwin-Williams ( NYSE: SHW ) ) thing that I talked about yesterday; I got several emails about that essentially telling me how it resonated with them when I mentioned about the stock split effect can have the stock go one or two ways depending on whether the stock is are going up because funds are really, really interested in buying it and can’t find enough supply. In which case, if the stock splits 2 or 3:1 that supply is going to make it easier for funds to buy the stock, meaning the stock isn’t going to go too far.
Or if the stock absolutely tanks then you know that that is the reason. It is not like there is some huge demand for the stock, it is just that there is some demand and it wasn’t available. So as soon as it was available the stock tanked. We are not seeing that, we are seeing this actually go higher, so that’s a good thing.
And for a walk down memory lane here’s an older one ( NASDAQ: LRCX ). We looked at this stock back here where it was below 600.00. Now is the time when you would want to be taking some partial profits on that. Maybe even taking it all off the table, it just depends on how you trade, I can’t tell you how to do that.
So anyway, my stock of the day is Etsy ( NASDAQ: ETSY ). It’s a little kind of a different kind of trade. You will see the stock trading below the 50-day moving average. The 50-day moving average is actually drifting lower now, it’s been struggling for a while. However, the uptrend is still intact.
This is a pretty simple trade idea. I would say if the stock runs above this down-trending line here, that’s when you want to go ahead and buy the stock. I would take a small position; you could even take it now if you wanted but I wouldn’t give it any more than 5 percent. You can’t really put your stop down here.
If the stock falls down much below 200.00 you weren’t early you were just wrong and so you have got to get out. But you could start a position here or just wait a little bit. Watch and see if the stock gets above 215.00 maybe. And if that’s the case, if it does that, then you have a pretty good sense that this stock has just been consolidating and you are going to see an upside resolution. Every other time over the last year this is what it’s done. The only question is, is this time going to be different?
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