PayPal Stock Price Rallies as Stock Market Gets Clobbered
PayPal Stock Rallies & Shows Competition can’t take on this payment juggernaut
PayPal’s shares were one of the best market performers Tuesday despite the tie-up between Global Payments and Total System Services that’s worth $21.5 billion of stock, CNBC’s Jim Cramer said.
The stock climbed 1.72% during the same session, while two major indexes declined nearly 1%.
“Every time you see competitors teaming up to try to take share from PayPal, it just reminds people how these guys are already the undisputed worldwide leader in payments, which is what makes this such a fabulous fintech stock,” the “Mad Money” host said.
cnbc.com/paypal-payment-juggernaut
Coinbase unlocks Paypal for Canadian users
The largest US-based cryptocurrency exchange now allows Canadian customers to use PayPal to deposit and withdraw funds.
“Following our recent announcements supporting PayPal in the U.S. and the EU, today we're expanding PayPal support for our customers in Canada,” the company announced in its blog post.
Thus, Canadian users will have immediate access to their funds wherever they are. Moreover, then they will pay no fees for transferring sale proceeds into a PayPal account.
How I plan to trade today:
The SPY ETF trades lower before the stock market opens today. Price action has finally breached the all-important $280 level. But let's not get too excited yet.
Stock prices rarely penetrate major level without a fight, plus the 200 sma is directly below offering support. Yesterday after offered great day trades into the close with obvious profit-taking before $280 (especially once price action showed momentum below the open price.
This morning is different. The first push off the open price will dictate my game plan for the day. Common wisdom says short sell the first rally after major support gets breached. I like common wisdom. It's common for a reason, because it works.
Today's Game Plan
A move lower off the open takes the SPY ETF too close to the 200 sma support at $277.35, thus the reward potential diminishes. Meaning I expect support to hold so the risk does not justify the reward. If the first move off the open is lower, I expect price to rally for the day.
If the first move off the gap lower is higher, I plan to short sell the first reversal candlestick near $280. What I'm doing here is expanding the profit potential thus making it a good decision to accept risk. Waiting for a rally to sell short (away from support and my profit target).
If I short the gap lower, that moves lower off the open, the price (profit potential) is smaller. So that scenario doesn't work for me.
Setting up trades in this manner is something that's good practice before the stock market opens. Have the guts to forecast exactly what you think should happen. If you have 5 trades and ONLY ONE does exactly what you planned, trade the trade with conviction.
And take it to the bank.
Questions? Drop a comment.
Pete