Earnings Release:
- EPS and rev. beat, rev. +61.4% Y/Y
- Operating margin rate of 9% vs. consensus of 0.6%
- Gross margin rate expanded 300 bps to 79%.
- Q4 revenue to be between $162M-$164M vs. consensus of $155.17M and Adjusted EPS of $0.01-$0.02 vs. consensus of $0.01.
- FY2020 revenue to be between $588M-$590M vs. consensus of $571.2M and Adjusted EPS of $0.17-$0.18 vs. consensus of $0.12.
- 10% short float, DtC=5.3
- +130% YTD vs +36% of QQQs
5th consecutive down day, -10% on solid earnings having provided Q4 AND FY20 guidance above est., +10% short float, gapping lower towards major daily support level S1=$82, and S2=AVWAP from March lows=$79.
----> easy long, or so I thought.
It was bought twice premarket at S1=major daily support level=premarket low=$82, so I put a small bid there to judge price action.
Opened weak and flushed right into S1.
Bid got hit for filler size, risking a bit more than 1% of price $81, expecting buyers to show up, defend S1 and a squeeze through VWAP in order to get some confirmation and buy more.
Very weak tape, DDOG couldn't bounce, so stayed with filler size.
Stopped out per plan, waiting for another try closer to S2=$79.
Found a bid at $80 and reversed. Reclaimed S1=$82, and when it started holding above,
Got long filler, risking LOD=$79.78. Added another half-tier when they tried to sell it below S1 again but buyers quickly bought it back, expecting a push towards R1=premarket support pivot=$84.5 for starters.
Sold small on the way to R1, more once it squeezed higher to R2=$86.5.
Great close (red to green vs opening print) & great daily candle (hammer) in-front of support. Kept size for a swing, target mid-90s.
Second Day Play, showing relative strength despite overall market weakness.
Sold some at the opening pop to R1=$88.65, reloaded small long once it cleared the desc. resist. trendline and reclaimed R1, taking profits closer to HOD=$90.3.
That swing stop trigger at the morning flush. Ouch:/
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-11-11 09:34:40 | DDOG | buy | $82.130 | long |
2020-11-11 09:34:40 | DDOG | buy | $82.120 | long |
2020-11-11 09:48:38 | DDOG | sell | $80.730 | 0 |
2020-11-11 11:30:10 | DDOG | buy | $82.110 | long |
2020-11-11 13:03:52 | DDOG | buy | $82.540 | long |
2020-11-11 14:54:16 | DDOG | sell | $83.415 | long |
2020-11-11 15:02:16 | DDOG | sell | $84.360 | long |
2020-11-11 15:45:16 | DDOG | sell | $86.400 | long |
2020-11-12 09:38:39 | DDOG | sell | $88.160 | long |
2020-11-12 09:39:09 | DDOG | sell | $88.450 | long |
2020-11-12 13:42:46 | DDOG | buy | $88.910 | long |
2020-11-12 15:16:12 | DDOG | sell | $89.590 | long |
2020-11-12 15:56:24 | DDOG | sell | $89.990 | long |
2020-11-12 19:48:13 | DDOG | sell | $89.310 | long |
2020-11-13 09:40:15 | DDOG | sell | $84.624 | 0 |
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