Here’s your trade on YY, Inc ($YY) (November 01, 2019)
YY
The market is really rocking, it’s starting to kind of melt up and I thought I would do something a little bit different this time on this trading video; because a lot of stocks are kind of running away and I am not seeing a lot of good entries. There are a lot of stocks that it’s nice to own but as far as putting new money to work, we see a few of them, and I am talking about this weekend’s update, but I thought I would go a different track here with this free video and it’s YY ( NASDAQ: YY ).
You can see that we’ve got this downtrending line here and then uptrending line here so this stock is kind of getting to a critical point, I’d say it’s kind of pinching. They report earnings in a couple of weeks, so not next week but the week after that they report earnings. If you are looking at a stock and trying to get in at the right time when is that? I recently taught a course called Turning Patterns to Profits and the idea was that we want to be in stocks that are in what’s called the markup phase, right here. This would be the accumulation here, not a whole lot going on there. I get this run but that is not what I am talking about here.
Typically you don’t really want to be in stocks that are in basing patterns because you’re not making any money. Why aren’t you making any money? Well, because the stock is in a basing pattern. It might base for a week or 9 years, we don’t make money then. We make money once a stock starts to move out of the base. And then we also don’t want to be in a stock when it’s in this distribution, which you can see with increasing volatility, more sideways action, etcetera, etcetera. And then finally, we sure don’t want to be in a stock when it goes into the markdown phase. Those are just general rules here.
This is the stuff that we want right here. So we did this, we did this, we did this. We are down here, up a little bit, and now we are zigzagging down and that leads us to where we are right now, which I see a little kind of a pinch here, a pop. So this is what I would look for, again, the company reports earnings on the 12th. I would set an alert for $60.00, that’s barely above where the stock is now; if the stock breaks out above $60.00 I think you could take it for a ride. Maybe look for it to run up close to 70.00. This isn’t a prediction this is a hypothesis. If the stock breaks out above 60.00, look at volume, if it’s on heavier than average volume, I’d look for a run, like up to $70.00 even before earnings are announced.
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