Market Neutral Strategy in Choppy Market: Swing Trader Profits 16.31% on PTON
In the world of finance, every investor is on the lookout for promising stocks that deliver substantial returns. With the market being swayed by unpredictable forces, adopting a stable and robust strategy is crucial. A shining example of such a strategy is the Market Neutral Strategy (TA&FA) utilized by Swing Trader Choppy Market Trader, as demonstrated by Peloton Interactive, Inc. (PTON).
This strategy has been a game-changer for PTON, one of the popular stocks that have seen a noteworthy generation of 16.31% returns recently. The secret to this exceptional growth lies in effectively navigating the market's highs and lows with a balanced approach that focuses on both technical analysis (TA) and fundamental analysis (FA).
A clear signal of the upward trend was observed on July 11, 2023, when PTON's 10-day moving average broke above the 50-day moving average. This bullish crossover is a reliable indication that the stock's trend has shifted upwards and can be construed as a buy signal.
Historically speaking, the PTON stock has demonstrated consistent performance in the aftermath of similar instances. In 10 out of 11 past events when the 10-day moving average crossed above the 50-day moving average, the stock continued to trend higher over the subsequent month. This pattern translates into an impressive 90% chance of a continued upward trend.
This success underscores the effectiveness of the Market Neutral Strategy (TA&FA), which proves its mettle in dealing with volatile markets while generating solid returns. It effectively leverages a combination of technical and fundamental analysis, maintaining a balanced focus on price trends and intrinsic company value.
The Swing Trader Choppy Market Trader's application of the Market Neutral Strategy (TA&FA) has positioned PTON on a promising upward trajectory. This case study underlines the efficacy of well-executed strategic planning in financial markets, offering insightful lessons for investors and traders navigating the complex waters of stock trading.
PTON's Indicator enters downward trend
The Aroon Indicator for PTON entered a downward trend on September 20, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 226 similar instances where the Aroon Indicator formed such a pattern. In of the 226 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PTON as a result. In of 64 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 PTON turned negative on September 08, 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 34 similar instances when the indicator turned negative. In of the 34 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for PTON crossed bearishly below the 50-day moving average on August 15, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 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 PTON 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 shows that the ticker has stayed in the oversold zone for 8 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 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 upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PTON advanced for three days, in of 240 cases, the price rose further within the following month. The odds of a continued upward trend are .
PTON may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PTON’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 (86.957) is normal, around the industry mean (18.670). P/E Ratio (0.000) is within average values for comparable stocks, (32.203). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.550). Dividend Yield (0.000) settles around the average of (0.065) among similar stocks. P/S Ratio (0.578) is also within normal values, averaging (5.299).
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 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PTON’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 86, 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
an interactive fitness platform, which engages in the operation of in-studio fitness classes, fitness clubs, at-home fitness equipment & content and health & wellness apps
Industry RecreationalProducts
PTON and
Correlation & Price change
A.I.dvisor indicates that over the last year, PTON has been loosely correlated with PII. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if PTON jumps, then PII could also see price increases.
| Ticker / NAME | Correlation To PTON | 1D Price Change % | ||
|---|---|---|---|---|
| PTON | 100% | -2.71% | ||
| PII - PTON | 51% Loosely correlated | -0.23% | ||
| MODG - PTON | 48% Loosely correlated | -3.18% | ||
| BC - PTON | 46% Loosely correlated | +1.40% | ||
| SEAS - PTON | 46% Loosely correlated | +0.17% | ||
| YETI - PTON | 46% Loosely correlated | +2.33% | ||
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