Dick’s Sporting goods, Inc. (DKS) missed earnings per share (EPS) estimates on 2 June, but the stock moved above its 200-day simple moving average at $37.40. Retailer of authentic sporting goods, including clothing, shoes, and it is a wide range of accessories is the consolidation of a bear market drop of 73% from its Dec. 31 high of $49.80 in its March 18 low of $13.46.
At the close on Friday of $39.41, the stock is down 20.4% year to date and is 20.9% below its Dec. 31 high. The cock of the stock is also 192.8% above its March 18 low. This is the extreme volatility that can be traded using daily and weekly charts and key levels from my proprietary analytics. Dick has a P/E ratio of 20.12 and a dividend yield of 3.46%, according to the trends.
The daily chart for Dick’s Sporting goods
The daily chart for Dick, shows a price gap higher on Nov. 26 on a positive reaction to the result. This has led to the testing of the Dec. 31 high of $49.80. The stock has dropped below 50 days simple moving average on Jan. 30, when it also fell below its semi-pivot at $46.16. This level was tested again on Feb. 6 as an opportunity to reduce their holdings.
Dick, the stock fell below its 200-day simple moving average on Feb. 26, which led to the 18 March low of $13.46. A death of the cross was confirmed on the 24th of March, when the 50-day simple moving average fell below the 200-day simple moving average, which has led to the low.
On the rebound, the stock has reached its 50-day simple moving average on April 27th. The stock gapped above its quarterly pivot at $32.99, on May 26. Note how the 200-day simple moving average has been a magnet since 2 June.
The weekly chart for Dick’s Sporting goods
The weekly chart for Dick is positive, with above its five-week modified moving average of $34.49. The stock is trading back and forth around its 200-week simple moving average, or the return to the average, to $38.61. The 12 x 3 x 3 weekly slow stochastic reading should rise to 81.11 this week, from 74.36 June 12.
Trading strategy: Buy Dick’s Sporting goods stock on the weakness of the monthly and quarterly value levels at $34.22 and $32.99, respectively, and reduce holdings on strength to semiannual risky level at $46.16.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.
The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of June has been established on the basis of the May 29 close. New weekly levels are calculated following the end of each week, while new quarterly levels occur at the end of each quarter. Half-yearly levels are updated at mid-year, the levels are set throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.