PINS Trade on Nov 1, 2019 09:40 from MarcoG: Tradervue User Stock Trades.

Consolidation & Pull-back play below pm low on ER Miss!!

Requirements:

Gap : >2.5%
RVOL : >1.5
pmVOL : >50 K
avg Vol: > 1M
Vol @ Day : >500 K
Long Term Chart : Possible Pocket or trend already defined.
Float: >20 M
Short Float: Possibly >40%
Institutional Ownership : Possibly > 100%
History of former runner: YES
Major ETF movement and strength: Trending
Catalyst : ER miss

---

Overall Picture

SPY missed the consolidation on the 303 area during yesterday's trading session to stabilize and trade basically horizontally @ 302sh. In pm all what lost in yesterday's session has been taken back to open today just 6 cents below yesterday's pm high @ 304.91
This is a good sign of strength here. I wouldn't exclude a further continuation up but as usual will be important to hold new achieved level of resistance getting to support on those

Today's Watchlist

Today I had on the watchlist: ANET, QRVO, STX and PINS

ANET: Arista Networks, Inc. ANET reported solid third-quarter 2019 results, where in both the bottom line and the top line increased year over year and surpassed the respective Zacks Consensus Estimate. The strong quarterly performance reflected the underlying strength of the resilient business model and diligent execution of operational plans.
On a GAAP basis, net income improved to $208.9 million or $2.59 per share from $168. million or loss of $2.08 per share in the year-ago quarter, primarily driven by top-line growth.Quarterly non-GAAP net income came in at $217.1 million or $2.69 per share compared with $171.3 million or $2.11 per share in the year-ago quarter. The bottom line beat the consensus estimate by 25 cents.
ANET was on watch for a gap down going up setup. Entry @ 181sh at 09:41 I din't trade it cause is not my A+ but perhaps as reported yesterday I had to give it a try with a smaller size. I will definitely come out with a procedure on those kind of setups.

QRVO: Qorvo (QRVO) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.92%. A quarter ago, it was expected that this chipmaker would post earnings of $1.15 per share when it actually produced earnings of $1.36, delivering a surprise of 18.26%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.
QRVO has good ER release and was my favorite stock today. I have tried to spot an entry at 09:37 and 09:38 with an order @ 92.16 but I have been too tight and didn't have the opportunity to be filled. Payed the price today to have again being to stuck to price levels instead of providing a wider range. My loss comes after have missed the great opportunity on QRVO. The setup has been the same of my last 2 trades thus fully tradable. I will find points of improvement on this matter!

STX: Shares of Seagate Technology (STX - Get Report) slipped Friday, after the data storage company reported declines in profit and revenue for its fiscal first quarter ended Oct. 4.Net income totaled $200 million, or 74 cents per share, down from $450 million, or $1.54 per share, a year earlier. Revenue was $2.58 billion, down from $2.99 billion.
STX was on the list due the the ER miss thus I was short biased on this. The stock reversed performing on an up-trend move. I have left it aside

Play

PINS

Company Description

Sector: Technology
Industry: Internet Content & Information

Pinterest, Inc. provides a visual discovery engine that helps users to discover ideas for various projects and interests worldwide. Its platform allows users to discover ideas for daily activities, remodeling a house or training for a marathon, ongoing passions, and planning a wedding or a dream vacation. The company's platform show visual recommendations called Pins, based on user personal taste and interests. It also provides Product Pins that make items shoppable with up-to-date pricing; Recipe Pins to cook a meal by bringing the relevant information; Shop the Look, which enables pinners to shop for the individual products they see within fashion and home decor Pins; and Video Pins, which are short videos with topics, such as how-to content about cooking and beauty. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in November 2010. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

Trade Scenario

Pinterest failed to generate as much revenue from its US users as expected in the third quarter of this year, as it posted overall revenues below expectations and disappointing guidance in lacklustre results that knocked its shares by more than 20 per cent. Revenues at the image search platform, which made its stock market debut in April, rose 47 per cent in the third quarter to $279.7 M, missing consensus expectations of just over $281 M, and representing a slowdown from a 62 per cent growth rate in the second quarter. While active user numbers increased by 28 per cent year-over-year to more than 322 M, analysts noted that US sales growth, and the amount of advertising revenue raked in from those users, was disappointing.

Trade Variables

Symbol : PINS
Gap : 22.8% to open at 21.8% gap
RVOL : 12
pmVOL : 3 M
avg Vol: 7.65 M
Vol @ Day : 50 M by noon
Float: 154 M
Short Float: 12.41%
Institutional Ownership : 51%
avg ATR : 1.52
ATR @ Day : 1.60
History of former runner: YES but quite choppy
Long Term Chart : The stock was trading his IPO price. We are in a deep hole here.
Major ETF movement and strength: XLK traded with a certain strength today's session such as SPY. Basically PINS and XLK had nothing in common. I have traded against his major ETF. I have got a great point of analysis here!
pmPATTERN : Bear flag + consolidation at flag @ 20 to slowly lose some strength testing new lows @ 19.41. Took back some we have got to a new high @ 20.66 and fade back again at low opening @ 19.63
Catalyst : ER Miss

Technical Levels

Support: S1 19.41
Resistance: R1 20 R2 20.28 R3 20.66
Inflection: 19.41

Trade Plan

PINS lost 22% in pm today. The er miss had kicked hard and definitely the stock got into a deep hole. I am looking for a short below inflection at 19.41 for a further down-trend continuation.

Set-up : Down-Trend Continuation on consolidation above inflection. Entering at the pullback
Side : Short
Size : 85 + 85 + 85
Entry : 19.37 / 19.11 / 19.24
Takes :
Exit: 19.51

Trade Analysis:

When I have seen PINS pulling back after the flush at the open I have got my focus on it for a possible entry. The main point today is on the fact that PINS had already lost 23% in pm thus such a large drop would imply a deep buying usually. I have lost foresight here.I didn't even consider the fact that PINS could be already too extended to grant a further down move

Intuit:

I have lacked in foresight as wrote before thus for as much as I have planned my trade the entire picture was wrong. I have traded in 3 entries to try to get an entry at left shoulder, an entry at the head and last entry at right shoulder. It would have resulted in great entries accumulation keeping the risk low as it occurred but has reported before PINS didn't have more steam to grant a down trend continuation today.

Tape reading:

I didn't read the tape for this trade. I was extremely focused on my entries and just followed it in background. Though I was following the orders book spotting a huge accumulation around the 19.20sh. This didn't give me good signs on my trade and is the reason also why I have slightly anticipated my exit.

Internalization:

I have controlled and checked everything prior my entry. Though today I was not in my best shape. I was filling a bit sleepy and not so centered.Even though I was not at the best I have managed the position properly and according to my plan. Internalized the price levels and set down my orders.

Orders:

I am happy in relation to my first and second entry but disappointed about my 3rd.I had to hold for a while and I could have the opportunity to be filled @ 19.41 again. This would have granted me surely a better avg price but still not enough for today's trading session. I think I will have the advantage of this practice with the time when collecting more trades. Thus in a longer statistical repetition.

Comments:

I have executed my plan all respecting all of it. I have only anticipated a bit cause adding already before I had no more tiers to add to my position, The 3rd add should have been exactly at my exit. It would have not granted a profitable trade but at least it would have represented the price action better and also my trade plan better!
I have in addition today did a little mistake with the size. I had to risk 70$ instead of 60$

What I did not like about the trade:
I didn't like the lack of oversight with the big picture and the last add was a bit rushed.

What I have liked:
I have liked that I am slowly having a better view on price and levels. I have to focus in the p better to avoid mistakes like this of today. PINS I think was not meant to be shorted at least not as a continuation, perhaps it could have worked as quick scalp!

I will review my report thus my trade again later after market will close to cross check if I haven't miss anything or if I have misinterpreted something.
Have a great weekend everyone :)