American Express's most recent trend suggests a bearish bias. One trading opportunity on American Express is a Bear Call Spread using a strike $118.00 short call and a strike $123.00 long call offers a potential 42.45% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $118.00 by expiration. The full premium credit of $1.49 would be kept by the premium seller. The risk of $3.51 would be incurred if the stock rose above the $123.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for American Express is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for American Express is bearish.
The RSI indicator is at 48.46 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for American Express
American Express Says to NYC Subway Riders: Don’t Tap and Pay Without It
Thu, 30 May 2019 18:36:00 +0000
Amex Will Issue All U.S. Consumer Cards as Contactless Beginning in July 2019
What To Look For In A Travel Rewards Credit Card
Thu, 30 May 2019 18:15:20 +0000
When evaluating your options for travel rewards credit cards, the sheer number out there can be overwhelming. Points can be anywhere from 25,000 to 100,000 before you see any of the benefits of a travel rewards card. The ideal travel rewards card will have a rewards system of at least 1.5 percent of your spending.
See what the IHS Markit Score report has to say about American Express Co.
Thu, 30 May 2019 12:01:45 +0000
American Express Co NYSE:AXPView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for AXP with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting AXP. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding AXP totaled $422 million. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is strong relative to the trend shown over the past year, but is easing. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. AXP credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Square Stock Is Setting Up for a Spike
Wed, 29 May 2019 14:29:01 +0000
Last year the impression was that banks couldn't hold their rallies, so it was easy to short the financial centers. But that was not the case for the payment transactors like Square (NASDAQ:SQ). The perception is that these financial tech -FinTech — companies are more tech than financials, so their stocks were soaring. But SQ stock has recently hit a snag and it lags the group.Source: Via SquareYear-to-date, SQ stock is still outperforming the S&P 500, up 16%, but that's about half as much Mastercard (NYSE:MA) and Paypal (NASDAQ:PYPL) and about eight percentage points worse than American Express (NYSE:AXP) and Visa (NYSE:V).For the last three months it's even worse. SQ is down 21% when the rest are still up for the same period.InvestorPlace – Stock Market News, Stock Advice & Trading TipsSo, is this relative slack in Square stock's performance an opportunity to bet on the bounce? Or is it a leading indicator that the rest of the gang will revert lower? My bet is that the fintech sector is still a bullish bet and that any weakness in Square is an opportunity to buy. For the last two years, SQ stock is up 184% which is more than double its competition. SQ Stock and the MarketIt is important to note that the whole equity market is being held hostage by the crisis of sentiment that we are having due to the tariff war. Keep that in mind for all bullish write ups inside that context. * 7 Stocks to Buy for June First, let's examine the whole fintech sector and why it's a definite winner for the long term. The globe has committed to moving as many financial transactions as possible online, and companies like Square are already there. This is a trend that is not likely to reverse, so demand on their products and services is likely to stay strong for decades. There are smaller companies coming into the arena, but I bet the ones already there will have the advantage.Fundamentally, SQ stock is still relatively new, so it's the most expensive of the bunch. Wall Street gives it the higher valuation because in theory it delivers the most growth. So far, management has not faltered, so this credit should continue until they show that growth is abating.In their last earnings report, SQ beat the metrics but were cautious with their guidance. So the message is that they continue to successfully execute on plans. Don't panic because of the muted guidance — this is management padding their expectations. Eventually this, too, shall pass and the stock should play catch-up with the rest.SQ stock sells at 8x sales. So although it loses money, it's twice as cheap as Visa and MA, both of which sell at over 16x price to sales. So after a big stock dip like this, I can consider it a value trade here. A lot of the froth has already fallen off.But the best argument for a Square rally scenario from here is technical.The weekly chart shows that SQ stock just bounced off an important support zone. The area around $60 per share has been pivotal for over a year. Bulls and bears are willing to fight over it, which in turn creates congestion. On the way down, this translates into support.Moreover, Square stock still maintains a higher low trend off the Christmas bounce. This is also bumping against the descending line of lower highs, so now it comes into a tight point. Usually, these explode in a big move, and after so much of the froth has already left the stock, I bet odds are it surges higher.If so, the immediate target would be the April and February fail points at $75.50 and $82 per share, respectively.Conversely, stocks are still hostage to geopolitical headline risk, so overall sentiment is sour. Square stock rallies would probably need the help of overall market action. So if the general malaise persists on Wall Street, then SQ is vulnerable.Below $61 per share, it could trigger a retest of the December lows near $51. I don't see this happening, but the technical bearish pattern looms and the neckline is close. So if this is a short-term trade then I have to set tight stop loss triggers. Else, I can hold Square stock for the long term as it will be a winner.In short, Square stock has solid fundamentals in a popular sector. And now also has favorable technical setups. This makes it an attractive bullish bet for the next few weeks.The experts on Wall Street are split on the rating between buy and hold, but they all agree that its stock should be higher. It's trading now well below their average price target near $83.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post Square Stock Is Setting Up for a Spike appeared first on InvestorPlace.
How Mastercard and Visa Are Beating the Tech Giants at Their Own Game
Wed, 29 May 2019 09:00:00 +0000
Together with PayPal, Visa and Mastercard look virtually unassailable in the digital-payments market. The stocks, while pricey by traditional price/earnings metrics, show no signs of slowing down.
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