Impressive Gains: Trend Trading $TWLO at +21.62% & Earnings Trading $TSP +18.14%
The Comparative Success of Trend Trader and Earnings Trader: A Study of TWLO and TSP
Trading strategies are the lifeblood of the investment landscape. Deciding on a plan of action can make or break your potential for success. Today, we will dissect two specific approaches: Trend Trader focusing on popular stocks (using both technical analysis [TA] and fundamental analysis [FA]) and the Earnings Trader (relying solely on technical analysis [TA]).
Trend Trader's and Earnings Trader's strategies revolve around different methodologies. While the former focuses on the broader market sentiment, the latter emphasizes earnings reports, which can significantly sway a company's stock price.
To illustrate these strategies, let's examine two specific cases: TWLO with Trend Trader, and TSP with Earnings Trader.
TWLO and the Power of Trend Trader
TWLO, a prominent stock in the technology sector, offers an excellent example of the efficacy of the Trend Trader strategy. It yielded a return of +21.62% with this approach, showcasing the potential of combining TA and FA.
Trend Trader strategy incorporates both technical and fundamental analysis. The technical component of this strategy uses statistical trends, such as trading volumes and price movements, to predict future price trends. On the other hand, fundamental analysis provides a wider perspective by evaluating the company's financial health, industry position, and macroeconomic indicators. For TWLO, this combined analysis proved to be particularly successful, yielding considerable returns.
TSP's Performance with Earnings Trader
Turning to the Earnings Trader strategy, we can look at the returns on TSP as an exemplary case. This approach yielded an impressive +18.14% return, demonstrating the potency of an earnings-focused strategy with technical analysis.
In the Earnings Trader strategy, investors primarily focus on a company's earnings reports. They leverage technical analysis to predict how these earnings reports will influence stock prices. With TSP, investors who relied on these techniques could capitalize on market movements following earnings reports, leading to substantial returns.
Summary:
When comparing the two strategies, both Trend Trader and Earnings Trader strategies have shown their potential to generate healthy returns in the cases of TWLO and TSP respectively. The choice between the two strategies depends on the investor's comfort with the method, the specific market scenario, and the knowledge and resources to analyze data.
TWLO in downward trend: price dove below 50-day moving average on September 15, 2023
TWLO moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend. In of 31 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TWLO as a result. In of 85 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 TWLO 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 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for TWLO crossed bearishly below the 50-day moving average on September 25, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TWLO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TWLO's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 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 TWLO advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
TWLO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 210 cases where TWLO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. TWLO’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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (1.052) is normal, around the industry mean (17.320). P/E Ratio (0.000) is within average values for comparable stocks, (41.731). TWLO's Projected Growth (PEG Ratio) (28.154) is very high in comparison to the industry average of (3.531). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. P/S Ratio (2.640) is also within normal values, averaging (8.550).
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. TWLO’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 92, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of cloud-based communications platform
Industry InternetSoftwareServices
TWLO and
Correlation & Price change
A.I.dvisor indicates that over the last year, TWLO has been loosely correlated with YELP. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if TWLO jumps, then YELP could also see price increases.
| Ticker / NAME | Correlation To TWLO | 1D Price Change % | ||
|---|---|---|---|---|
| TWLO | 100% | +1.04% | ||
| YELP - TWLO | 58% Loosely correlated | +0.17% | ||
| CARG - TWLO | 47% Loosely correlated | -1.24% | ||
| FVRR - TWLO | 45% Loosely correlated | +2.77% | ||
| ZG - TWLO | 45% Loosely correlated | -0.78% | ||
| Z - TWLO | 45% Loosely correlated | -0.86% | ||
More | ||||