On Top of the Cloud

Published on
July 9th, 2018
Duration
7 minutes

On Top of the Cloud

Trade Ideas ·
Featuring Danielle Shay, Justine Underhill

Published on: July 9th, 2018 • Duration: 7 minutes

Danielle Shay, director of options trading at Simpler Trading, lays out a bullish trade on cloud networking solutions company Arista. She explains why she expects the stock to climb ahead of earnings, and reveals the key levels to watch, in this interview with Justine Underhill. Filmed on June 28, 2018

Comments

  • CM
    Chris M.
    14 July 2018 @ 02:50
    I'd short this before I long this. Either way, I guess if one uses the logic of it'll ultimately retest the highs, then yeah, I suppose so. But technically, I don't see it. I've put fib time and price and don't see any correlations. I've looked for symmetry. Nothing. What I did see was a failure to break a 5 point resistance that lines up with the 78 Fib retracement. Considering (I believe) you said it would be good to own the stock, Timeframe hold basis to take profit is kinda out the window. It's confusing I guess cause this is in trade ideas, not investing ideas. Ya know?
  • ZH
    Zayd H.
    10 July 2018 @ 02:39
    Looks like the stock has gained about $15 since the segment was taped on June 28 and published just today. Perhaps these types of trading ideas would be even more useful if they were turned around faster for air?
  • CM
    C M.
    10 July 2018 @ 01:40
    Not sure that Danielle's short experience trading the markets, transitioning from being an elementary school teacher just four years ago, gives me a lot of confidence in the recommendation. Just a quick check with Morningstar, their fair value on the stock is $207 versus current price of $270. Trading at high mulitiples to earnings, cash flow and sales. Buyer beware.
    • JL
      Johan L.
      10 July 2018 @ 08:34
      And Simplywall.st says "about right" price is 141. Healthy company with a good past record and bright future - but overvalued atm. https://simplywall.st/stocks/us/tech/nyse-anet/arista-networks
    • EF
      Eric F.
      11 July 2018 @ 21:10
      You ever heard of growth stock guys? That said, I wouldn’t buy in this environment, but you’ll lose a hell of a lot opportunities basing a buy decision on valuation for a fast growing company.
    • DS
      Danielle S. | Contributor
      12 July 2018 @ 16:31
      Thanks for your comments CM. I can understand your hesitation but I've been trained by the best of the best. It's good to see the setup playing out as planned, and I look for the next areas of resistance at $280 and $282.70. A failure here could give me an opportunity to add, on a pullback to support. Without a failure, I continue to look for a target of about $295.
  • cl
    connor l.
    9 July 2018 @ 23:20
    Timing. The difference in time between the date of filming and posting of the completed project is all the time in the world. Until this issue is rectified the idea behind the trade ideas section cannot be fully realized. I look forward to the day that we have a manageable gap between the filming and posting. Still a fabulous resource for learning though. Thanks for all your hard work. Cheers!
    • cl
      connor l.
      9 July 2018 @ 23:21
      Also, I really enjoyed the video. Thanks for the contribution Danielle!
  • TE
    Tito E.
    9 July 2018 @ 18:24
    Why the thumbs down guys? This looks a good setup - unfortunately i missed gap up today but keeping an eye. Lovely retracement on a good-looking chart.
    • DS
      Danielle S. | Contributor
      12 July 2018 @ 16:28
      Thank you Tito, it's nice to see it playing out as planned. I see the next areas of resistance at $280 and $282.70. Oftentimes I will use a pause at these resistance levels with a pullback to the 8 EMA as an additional buying point. However, if we blow through those levels without a pullback then there isn't an opportunity to add to the position and I'll look ahead to targets.