WBA Trade on Jul 9, 2020 12:51 from Cklamb: Tradervue User Stock Trades.

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WBA
Intraday Fundamentals
• Earnings miss on lower traffic during pandemic
• Restricting UK business
o Walgreens Boots Alliance Inc. said demand fell off in its international business during the drugstore chain's latest quarter as consumers in the U.K. stayed at home amid the coronavirus pandemic, hurting its business in that market.
o The pharmacy chain on Thursday said the Covid-19 pandemic sliced out around $700 million to $750 million in sales for its quarter that ended May 31 , with most of the impact tied to its retail pharmacy business overseas.
o A "dramatic reduction" in customer traffic, including an 85% decline in April, weighed on demand for its Boots U.K. stores, Walgreens said. The company said it recorded noncash impairment charges of $2 billion tied to the Boots U.K. unit.
o Overall, Walgreens said it lost $1.71 billion , or $1.95 a share, for its latest quarter, compared with a year-earlier profit of $1.03 billion , or $1.13 a share. Its adjusted profit fell to 83 cents a share and was short of expectations.
o The company generated $34.6 billion in sales, roughly flat year over year. Analysts polled by FactSet predicted $34.3 billion in sales for the latest period.
o In the U.S. retail unit, sales rose about 3% from a year earlier to $27.4 billion for the latest quarter. Pharmacy sales were up 4.6%, while prescriptions filled in the third quarter decreased 1.3%.
o The Covid-19 pandemic has been challenging for drugstores, as patients put off visiting doctors and other health providers. Walgreens is part of a coalition of health-focused companies that is paying for advertisements that encourage people to return to their medical providers.
o "Globally, pharmacy volume was impacted by a drop in doctor visits and hospital patient admissions," the company said.
o Walgreens is working with and investing in primary-care provider VillageMD to open 500 to 700 doctors' offices in its drugstores.
o Rival CVS Health Corp. is developing so-called health-care hubs in its stores, offering a range of medical services. Walmart Inc. is also adding clinics to its locations.
Technicals
ADV 6.54m RVOL 1.12 ATR 1.58 BETA .54 Short 2.51% Inst Own 59.8%
Daily Chart

Hourly Chart

Intra Chart

Trading Strategy
• Look for an opening long scalp at 39 .20 ish if it blows through here there is a large pocket to 36.70
• If 39 drops wait and see if this recover after it recovers the may gap at 38.50
• Short 42 on any spike into that level (not likely)
• Short VWAP tests
Reading the Tape
I watched this all the way. It caught at .83 .64 .50 and .33 as it moved to the low. I did misjudge the strength as this looked like it might re-take 39 though. 38.83 was not giving in
Trade Management
Trade Notes

I was working and holding for the fill of the May 15th gap. I had planned on waiting for this to move a lot closer to 38.50 before looking for the long as 38.45 was the close on May 15th. However, the tape started holding at 68.84 after hitting 68.83 or the close of May 14th. I felt that may as much of the gap as it would fill day one and decided that I may want start in with something small. Which I did as it spike into 39 and pulled back from there. Which I was prepared for looking to add in to 38.50. I would fight for price over the next thirty cents getting the cost average closer to the 38.50 before finally adding just above .33 where this had caught a bid. This was also the same as the opening print of May 14th. I worked this out for a solid gain as it moved back above 38.50 leaving me a coast average just above 38.50 to fit the game planning to stop under .20 thinking that 38.33 would be the of the opening. I finally gave this up as it came back into .33 and looked weak enough that I felt 38.20 was going to give. At this point, I had worked this enough and felt like this may test the 52 week low.
I would came back after this as it resisted 38.50 and realizing that 38.03 was another point in that three days in May that set up the gap and today’s fill off the May 13th candle. I need to stick with this trade a little longer. But, the AM patience was worn.


Execution detail:

Date/time Symbol Side Price Position
2020-07-09 12:51:37 WBA buy $38.401 long
2020-07-09 12:52:36 WBA sell $38.430 0


Comments

2020-07-09 21:34:51
 

what made u sell this so quick?

2020-07-11 08:37:53
 

I should not have. I had tried to work a long on this in the prior trade(not posted). It flushed me out. I had planned to hold until .80 and did not stick to the plan.

2020-07-13 22:34:12
 

Ahh got it.. all good, we live to trade another day! Remeber, we're not trying to be right, we're trying to stick to our plan! Next time!

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