20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
Serge Berger was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
The Steady Trader’s Head Trader and Investment Strategist Serge Berger was on Benzinga’s #PreMarket Prep morning show on Thursday. Amongst several topics and stocks, including GoPro Inc’s (NASDAQ: GPRO), the trader talked about Alibaba Group Holding Ltd (NYSE: BABA) and its stock.
Shares of Alibaba are slowly recuperating, after plummeting more than 21 percent in the last three months. They are now trading slightly below the $86 level.
On Wednesday, a lock-up period expired, and insiders owning a total of 337 million Alibaba shares are now allowed to sell them. Another lock-up expiring in May will allow the sale of an extra 100 million shares owned by employees. An even larger lock-up of more than a billion shares held by insiders, including Yahoo! Inc. (NASDAQ: YHOO), expires in September.
A Reuters article explains that “some investors are worrying about further drops in the stock as insiders sell.”
Now, Berger sees one question as crucial: will the stock break above $86?
“On that beautiful rally day (…) the 4th of March, I actually posted something on Benzinga on the significance of that day. And I think you actually mentioned Jay-Z before; he mentioned that as well at some point. And I think that was, for me, price-action point of view, an important day.”
“Now, it doesn’t mean you immediately see follow-through breakout… you can see a recess from the lows (…) but it hasn’t fallen apart, even after yesterday’s lock-up. So, to me, that still puts a lot of significance on that big monster rally day.”
Bottom line, Berger thinks the stock needs to get above $86. “As long as it doesn’t get above $86 –unless you are day trading- it’s a gamble.”
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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