Etsy Inc (NASDAQ:ETSY) is getting a much-needed broad-market boost today, last seen up 3.3% as it struggles to take back the $100 mark. The security was on its way up this July, though August and September have proved rocky as pressure emerges at the 170-day moving average and near the $110 level. October looks promising, though, as ETSY finds its footing on several layers of support including he $94 mark and a historically bullish trendline that could signal more upside soon.
The trendline we’re referring to is the stock’s 100-day moving average. According to a study from Schaeffer’s Senior Quantitative Analyst Rocky White, there have been five similar instances within the past three years in which ETSY has come within one standard deviation of this trendline following a lengthy trip above it. A month after these five signals, the shares were higher 80% of the time, averaging an impressive 11.1% return. From its current perch, a similar move would put the equity at $11.32, toppling several resistance areas we mentioned above.
Analysts have taken a split stance on the security, with 11 saying “buy” or better, and 10 at a “hold.” Meanwhile, short sellers have been dropping off, falling 12.7% in the last two reporting periods, though the 12.54 million shares still make up 10.4% of the stock’s available float.
Options traders, meanwhile, have been quite bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ETSY sports a 10-day put/call volume ratio of 1.71 that sits higher than 75% of readings from the last year.
Further, the stock’s Schaeffer’s put/call open interest ratio (SOIR) of 1.84 stands in the 95th percentile of its annual range. This implies short-term options players have rarely been more put-biased.
Many of us will read this and be oblivious to the worldwide crisis. But if the current trends continue, it will become real to all of us soon enough. Most of us learned in elementary school that 97% of the world’s water is salt water. And only about 1% of the total water supply is drinkable.
That is becoming difficult math for several areas of the world. A severe, multi-year drought is causing water levels to sink to historically low levels. And the federal government is threatening to cut water use by 25% in the most-affected states of Arizona, California, and Nevada.
And even if we’re not put under water restrictions, we are all likely to see higher costs for food. One reason for that is that about 25% of the nation’s food supply comes from California. An American Farm Bureau Federation survey conducted in 2021 found that 40% of farmers sold off part of their cattle herds.
But opportunities present themselves in the midst of crisis, and this is no difference. In this special presentation, we’re looking at seven water stocks that look like smart buys as the world grapples for solutions.
View the “7 Water Stocks to Buy as the World Dries Up”.