A $1 Billion Pledge in a High-Beta Stock
During what has been a volatile stock market in general, many active traders are constantly looking for a few trade ideas each week which could outperform the stock market at large.
Simply put, if markets make a 1% move intraday, active traders such as myself and maybe even you could hunt down stocks which could move 2% intraday. Stocks of this nature are generally classified as high-beta stocks, as they carry more potential reward and risk than a diversified index fund for example.
Hot off the press as of minutes ago, financial analyst and investor Ben Levisohn of Barrons recently traded out of the defensive securities in which he had been invested through the recent market downturn, and allocated 15% of his investment portfolio into Square (NYSE: SQ), a high-beta stock.
Levisohn stated that while he is confident cases of COVID-19 will ultimately slow down and resolve in full, he sees no impending end in sight for stay-at-home mandates and social distancing. Square is best known for its ability to process consumer payments using a cell phone, and as a result has been met with more consumer demand than ever in recent weeks.
While Levisohn has taken a bullish stance in Square’s stock, co-founder and chief executive Jack Dorsey pledged $1 billion in Square stock to COVID-19 pandemic relief last night, 28% of his personal wealth.
Given these two influential financial postures, and the fact that Square is a high-beta stock in what has been a fast moving market, SQ is setting up nicely from a technical analysis point of view heading into Wednesday’s trading session.
Shown in green on the chart above is Square’s 20-day simple moving average line, a key support level. Should Square remain trading above its 20-day simple moving average line, I’ll be interested in making a bullish trade with the goal of paying myself by the end of the day.
On the other hand, if Square falls below its 20-day simple moving average line and markets fall into the red, I’ll look to make a bearish trade on Square, collecting all available profits by today’s close.
Simple as that… One stock, opportunities in both green and red markets, two financial bellwethers, and the advantage of assessing current financial professional data sourced by TrackStar all cultimate to inform my point of view when delivering my personal technical analysis.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.