The Market Neutral Strategy (TA&FA), or technical analysis and financial analysis strategy, is proving its prowess in navigating a choppy market environment, as it chalks up an impressive 8.45% yield for SQ, one of the popular stocks currently on the market.
An integral part of this strategic approach is the Aroon Indicator, a unique technical analysis tool that helps predict if a specific security is trending and how strong that trend is. It measures the time it takes for the price to reach its highest and lowest points over a given time period, usually 25 days. If the AroonUp line is over 70 and the AroonDown is under 30, the stock is typically setting up for a bullish move.
In the case of SQ, the Aroon Indicator was successfully employed to predict an upward shift. The bullish signal was triggered on July 11, 2023, when the AroonUp green line was observed above 70, while the AroonDown red line remained below 30. This pattern has generally been a reliable indicator of an impending upswing, making it an optimal time for traders to consider purchasing the stock or call options.
This pattern isn't just a one-off. According to the A.I.dvisor, there have been 256 similar instances in which SQ's Aroon Indicator showed this pattern. Remarkably, in 209 of these instances, the stock went on to move higher in the days that followed. This translates to a striking 82% success rate, further validating the effectiveness of the Aroon Indicator within the Market Neutral Strategy (TA&FA) in anticipating and capitalizing on market trends, particularly in the context of popular stocks such as SQ.
The performance of SQ showcases the robustness of the Market Neutral Strategy (TA&FA) and its applicability in diverse market environments. This strategy not only provides valuable insights into market trends but also offers traders the opportunity to maximize returns from popular stocks such as SQ.
The 50-day moving average for SQ moved below the 200-day moving average on August 23, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SQ as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SQ turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SQ entered a downward trend on September 20, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQ advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
SQ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.567) is normal, around the industry mean (19.856). P/E Ratio (294.118) is within average values for comparable stocks, (152.778). Projected Growth (PEG Ratio) (1.424) is also within normal values, averaging (2.642). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (1.390) is also within normal values, averaging (74.113).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SQ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SQ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of credit card reader solutions for mobile devices
A.I.dvisor indicates that over the last year, SQ has been closely correlated with COIN. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SQ jumps, then COIN could also see price increases.