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Cklamb

 

JD

Aug 13, 2019 13:52


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Support Play Short

JD
Intraday Fundamentals
• Shares of JD.com Inc. (JD) surged 6.7% in active premarket trading Tuesday, after the China-based e-commerce company reported second-quarter earnings that beat expectations. Trading volume topped 1.3 million shares, making the stock the most actively traded ahead of the open. The company swung to net income of RMB618.8 million ($90.14 million), or RMB0.36 a share, from a loss of RMB2.21 billion a year ago. Excluding non-recurring items, adjusted EPS was RMB2.30, or 33 cents in U.S. dollars, which beat the average analyst estimate of 6 cents, according to FactSet. Revenue rose 22.9% to RMB150.28 billion ($21.89 billion) from RMB122.29 billion, which topped the FactSet consensus of $20.87 billion. Product revenue rose 20.8% and net service revenue grew 42.0%. The stock has jumped 29.8% year to date through Monday, while the S&P 500 has advanced 15.0%.
• JD.com (JD) reported second-quarter profit and revenue that beat analysts' expectations.
• The Chinese e-commerce company reported net income of 618.8 million yuan ($90.1 million), up from a loss of 2.2 billion yuan during the year-ago quarter.
• On an adjusted basis, the company posted earnings of 2.30 yuan (33 U.S. cents) a share. Analysts were expecting adjusted earnings of 0.46 yuan a share.
• Revenue increased to 150.3 billion yuan ($21.9 billion) from 122.3 billion yuan in the prior year. Analysts were expecting revenue of 147.5 billion yuan.
• The company is forecasting third-quarter revenue between 126 billion yuan and 130 billion yuan.

Technicals
ADV12.5 m RVOL 1.56 ATR .97 BETA 14.41 Short 4.88% Inst Own 50.4%
Daily

Hourly

Intraday

Trading Plan
• Look for this to test of the 28 level, if it looks to hold take the and expect a back side test of the trendline around 28.50. You will need to manage the risk on the entry to make sure this represent good rvr Stop would be 27.50 if not
• Look for a hold of the trend line at 28.50 to continue the intermediate term trend 28.20 would be the stop as it stands now
• Short on a strong opening drive higher and a trend break and target VWAP
Reading the Tape
I did watch this for a while buyers and sellers seemed to appear and disappear in both .65 area and .50. The overall tape seemed weak with the sellers seeming to slowly step down to lower high.
Trade Management

Trade Review
• Shorted above VWAP on a strong stock that never tested VWAP
• Shorted off the first lower low of the day which was followed up by a lower high
• Lower high needed to be used to reset stop
• I felt the trade was over at 12:21 PM and needed to look for the best exit and not just let the stop get hit.
• Risk profile not good enough to take the trade… unless it tested VWAP
• Morning plan was to long this at 28. It hit 28.16. I felt it had gotten overextended and felt that it would need to retrace some of the gains today.

Trade Grade
Aspect Score Poss. Notes
Preparation 7 10 I had a couple plans that I did not follow
Hard Work 8 10 There was a lot of patience to set up for this short and time spent trying to see what I could on the tape
Patience 7 10 I waited for the break of 30.50 as I had planned around my bias
Plan 4 10 I didn’t follow either plan to take this long on my thesis
Discipline 6 10 Good self- talk during this trade.
Contribution NA 10

Replay 0 10 I do have tape of this


Execution detail:

Date/time Symbol Side Price Position
2019-08-13 13:52:40 JD sell $30.495 short
2019-08-13 14:29:19 JD buy $30.780 0


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