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ETSY

melrose asked 4 years ago

is etsy a buy at the 50 day line?

thanks,

melrose

1 Answers
Avatar photoOwen Staff answered 4 years ago

Hi Melrose,
We would not be a buyer here.  We are breakout, momentum traders; not bounce traders.  Now, that’s not to say we won’t buy something, to add to a position, bouncing off a moving average, but typically that moving average would be the 8 or the 21.  ESTY experienced a distribution (or selloff) day on Friday as it sold off with a pickup in volume.  It has lost both the 8ema and the 21ema and is making an effort toward the 50.  Could the trade work?  Sure, it could.  But, we like trades that stack the deck in our favor; we like the probabilities to be with us.  We want the whole world to see what we see. That’s why we like stocks with great earnings and/or great sales, in a good group, looking to make new highs.  When those elements are comprised together it leads to a high chance probability of success.
Hope that helps!
Owen

melrose replied 4 years ago

so an etsy trade here is called a “bounce” trade. if it were bouncing off of 21 day would that be ok. got it. 50 too low.

Avatar photoOwen Staff replied 4 years ago

Pat made this video for you:

https://youtu.be/Hf2fag1It_c