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Nov 18, 2020 09:30


Intraday Fundamentals
• Shares of Lowe's Companies (LOW) dropped 4.8% in premarket trading Wednesday, after the home improvement retailer reported fiscal third-quarter sales that rose above expectations, but an adjusted profit that was just in line with forecasts. Net income fell to $692 million , or 91 cents a share, from $1.05 billion , or $1.36 a share, in the year-ago period. Excluding non-recurring items, such as losses on the extinguishment of debt, adjusted earnings per share came to $1.98 , matching the FactSet consensus of $1.98 . Sales increased 28.3% to $22.31 billion , above the FactSet consensus of $21.17 billion , as U.S. same-store sales jumped 30.4% to beat expectations of a 23.0% rise. The company invested $245 million in COVID-related support for its employees during the quarter, and repurchased $621 million worth of its stock. For the fourth quarter, Lowe's expects adjusted EPS of $1.10 to $1.20 , surrounding the FactSet consensus of $1.16 , and same-store sales growth of 15% to 20%, above expectations of 13% growth. The stock has run up 33.5% year to date through Tuesday, while the SPDR S&P Retail ETF (XRT) has climbed 22.3% and the S&P 500 has gained 11.7%.
Technical Stats
ADV 4.14 m RVOL 1.36 ATR 4.85 Short .66% Inst Own 77%

Trading Strategy
• Long 145.40
• Long a hold over 150 find the right entry
• Reversal set up at 8 or 830
Reading the Tape
NA- There was a tightening spread on the HoD hold short on this. There was nothing that I could note as telling
Trade Management

Trade Notes
I listened to one of the people I follow and thoughts on shorting this into a pop up to 154. I decided to short this into a level that I had at 153 and got a tough fill on the spread and market order. I did manage to catch some action on the tape as it started toe fail above 154 and got a great add letting me net 80 cents on the full load. I need to tap this at VWAP as would just be expected and easy to hit in this situation most of the time.

Execution detail:

Date/time Symbol Side Price Position
2020-11-18 09:30:37 LOW sell $151.710 short
2020-11-18 09:31:35 LOW sell $154.200 short
2020-11-18 09:32:25 LOW buy $152.286 0

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