Sagar Nandi
Finding a stock to trade starting with another.


Today, $AVP is going up strongly. It is not a good idea to chase stocks. Not a Superior Profit Way. Therefore, I started with a peer analysis of AVP using CUE Vital peer analyst to see if there is another stock in the same industry that may give a buying opportunity. This is what I found. 

All snapshots are as of ~2:30 PM EST.

a) COTY weekly has bullish Backdrop color, allowing us to look for low-risk swing trade buy opportunity on the daily chart.
b) Daily is showing Extreme Bullish Pressure.
c) Daily has Very High Activity, a positive for buy-setups.
d) It had a high Put/Call ratio recently. That is NOT a required condition for CUE trade setups. Some people think that is bullish. We take note of that. However, this does not alter our trade setup conditions.
e) Volatility is very low relative to its history. So one might take a bullish position using stock or call options both, or with verticals etc.
f) COTY is coming out of a Squeeze (note, that CUE Squeeze, and Squeeze Release are not the standard squeeze calculations that are available in other systems).

From Edge: 

g) COTY's industry is strong, turning rapidly cyan from magenta today, as the stock is breaking out of squeeze at a low price level.

From Vital scorecard:

h) COTY has a great valuation, and that is better than AVP.
i) COTY's earnings growth is muted, but better than AVP.
j) COTY pays a nice dividend. AVP has no dividend.

Overall, fundamentally, COTY has many reasons for us to look for a buy setup.

Earning is on 8th Feb and you may consider closing the trade before that.

COTY chart 2019-01-31_14-30-59.jpg  COTY Edge 2019-01-31_14-35-19.jpg  COTY Vital 2019-01-31_14-34-22.jpg 
Sagar Nandi
$COTY is more than 25% today after earnings.

I had shared COTY as a possible buy on 31st Jan, eight days ago.

Having a systematic and disciplined approach helps to identify low-risk high probability opportunities, often ahead of others.

COTY Feb 7.5 Call could be bought when I shared the post at 0.63. Currently, that is trading at 1.41 bid and 1.5 ask, which is more than 100% profit on the call option. One could book enough lots to get the investment back and make the entire trade risk free from now onward. There is still one more week to go on the Call option, and CUE guideline would be to book at least partial profit to make the trade risk free and hold on to partial position to let profit run. One may put a stop based on the stock price on the remaining position. The stop could be placed just below Early Range Low on CUE Intraday Entry chart.

COTY result 2019-02-08_9-47-11.jpg 

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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