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Cklamb

 

LOW

Aug 21, 2019 10:23


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Intrday support play Long

LOW
Intraday Fundamentals

• August 21, 2019 07:37 AM ET (BZ Newswire) -- Earnings
• Lowe's Companies, Inc. (NYSE:LOW) reported second-quarter earnings of $2.15 per share, which beat the analyst consensus estimate of $2.01.
• The company reported sales for the second-quarter increased 0.5% to $21.0 billion from $20.9 billion in the second-quarter of 2018, and comparable sales increased 2.3%.
Lowe's reported net earnings of $1.7 billion and diluted earnings per share of $2.14 for the quarter ended Aug. 2, 2019, compared to net earnings of $1.5 billion and diluted earnings per share of $1.86 in the second-quarter of 2018.
• The company sees fiscal year 2019 guidance adjusted EPS $5.45-$5.65 versus the $5.57 estimate.
• "We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second-quarter results. Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S. This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework," said Marvin Ellison, Lowe's CEO in a statement.

Technicals
ADV5.32 RVOL 1.77 BETA 1.35 ATR 2.34 Short 1.17 % Inst Own. 78.40
Daily

Hourly

Intraday

Trading Strategy
• Look for a similar grind higher to HD if this holds 110 through price discovery
• Look for a long at 108 if it flushes there in the opening, make sure you note the momentum going into the opening tick and see if it is showing weakness from the all time high set in the pre-market
• Take a long on later day test of VWAP if it makes that kind of pullback
• Short only if it starts to trend downward
Reading the Tape
I did watch the tape on both of the trades that I took on this stock today. I read strength in the tape that was not there on the first trade.
On the second trade, there was strength coming off the LoD that started to falter a bit as I entered.
Trade Management

Trade Review
• I made up a level in anticipation of a higher low.
• Game plan was to look for a long at 108 and play into the trend
• The break below 108.70 was signaling that there may not be enough strength to put in a higher low where it would need to be
Improvement here is:
• Let the price action tell you if there is going to be a higher low
• I don’t have the power to make up a level
Trade grade
Aspect Score Poss. Notes
Preparation 8 10 Yes prepared for a couple of scenarios
Hard Work 4 10 For the couple minutes that I was waiting for this to set up. I read into the tape what I wanted to see on the entry above 108.50
Patience 2 10 On entry
Plan 4 10 There was plan to get myself into a trend continuation play on a pullback
Discipline 6 10 I need to be all around not so anxious to get a trade started even if I had missed a couple opportunities already
Contribution NA 10

Replay 0 10


Execution detail:

Date/time Symbol Side Price Position
2019-08-21 10:23:18 LOW buy $108.624 long
2019-08-21 10:24:10 LOW sell $108.365 0


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