"Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)," recently caught our attention with a remarkable performance, delivering a substantial +15.56% gain while trading ROKU over the previous week. In this article, we delve into the bot's impressive performance, dissect the latest market indicators, and explore insights from the Movies/Entertainment Industry.
Aroon Indicator Signals Potential Bullish Momentum for ROKU
One key indicator that has traders buzzing is the Aroon Indicator for ROKU, which flashed a bullish signal on August 10, 2023. According to Tickeron's A.I.dvisor, this signal is triggered when the AroonUp green line rises above 70 while the AroonDown red line remains below 30. Such a configuration suggests that the stock may be gearing up for a bullish move, presenting traders with an opportunity to either buy the stock or consider call options.
To provide context, we turn to historical data where A.I.dvisor examined 228 similar instances of this Aroon Indicator pattern. In a noteworthy 201 out of these 228 cases, the stock indeed moved higher in the days following the signal. This historical performance points to an 88% probability of a move higher in ROKU's future, making it an enticing prospect for traders seeking to capitalize on potential bullish momentum.
Earnings Report and Market Capitalization
To understand the fundamentals behind ROKU's recent performance, we examine its earnings report. The last earnings report, released on July 27, 2023, revealed earnings per share of -75 cents, surpassing the estimated -126 cents. This positive earnings surprise is a critical factor that could contribute to ROKU's recent gains. Currently, ROKU has 3.83 million shares outstanding, resulting in a market capitalization of 11.81 billion dollars.
To gauge ROKU's market position further, we compare its market capitalization to the average across the Movies/Entertainment Industry, which stands at 6.98 billion dollars. Within this sector, market caps span from 134 million dollars (LRDG) to an impressive 196.23 billion dollars (NFLX). NFLX reigns supreme as the highest-valued company in the group, showcasing the diversity in market capitalization within the Movies/Entertainment Industry.
High and Low Price Movements in the Industry
Shifting our focus to price movements within the Movies/Entertainment Industry, it's essential to grasp the industry's dynamics. On average, weekly price growth across all stocks in this sector amounted to a positive 2%, indicating overall bullish sentiment. However, over the course of a month, the average price growth dipped to -3%, while the quarterly average plummeted to -10%, hinting at more extended periods of volatility.
Within this context, individual companies exhibited varying degrees of price fluctuations. MOCI stood out with an astounding 276% price growth, while AMXX experienced the most significant decline at -74%. These extreme price swings reflect the industry's inherent unpredictability and present both opportunities and risks for traders.
Volume Trends in the Movies/Entertainment Industry
Lastly, we examine volume trends in the Movies/Entertainment Industry. Weekly volume growth across all stocks in this sector saw an average decline of -19%, indicating reduced trading activity. However, over the course of a month, the average volume growth surged by 116%, with a similar trend observed over a quarter, where the average volume growth reached 100%.
These volume statistics illustrate the ebb and flow of investor interest in the Movies/Entertainment Industry. The sharp uptick in monthly and quarterly volume growth suggests that periods of heightened activity may coincide with increased market volatility.
In summary, the performance of the "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot serves as a compelling example of AI-powered trading in action. The bullish signal from the Aroon Indicator and ROKU's positive earnings surprise have contributed to its recent gains. However, it's crucial to keep in mind the broader industry dynamics, as reflected in price and volume trends, which can significantly impact trading strategies and outcomes. As the market continues to evolve, traders must remain adaptable and informed to navigate the ever-changing landscape successfully.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ROKU declined for three days, in of 294 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ROKU as a result. In of 86 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 ROKU turned negative on September 13, 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 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
ROKU moved below its 50-day moving average on September 13, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ROKU crossed bearishly below the 50-day moving average on September 19, 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 .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ROKU's RSI Indicator exited the oversold zone, of 26 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 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 ROKU advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
ROKU 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ROKU’s price grows at a higher 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 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 (3.802) is normal, around the industry mean (4.599). P/E Ratio (66.667) is within average values for comparable stocks, (77.183). ROKU's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.725). Dividend Yield (0.000) settles around the average of (0.061) among similar stocks. P/S Ratio (2.961) is also within normal values, averaging (111.279).
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. ROKU’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 89, placing this stock worse than average.
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of applications for digital media
A.I.dvisor indicates that over the last year, ROKU has been loosely correlated with WBD. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if ROKU jumps, then WBD could also see price increases.