Morning Overview: SPY IS ConsolidatingSo many markets are showing similar patterns. I cover what those look like in this morning overview. I also breakdown the AMEX:SPY NASDAQ:EBAY NASDAQ:QCOM and my One Good Trade series follow up NYSE:WES
WES trade ideas
One Good Trade: WES Hold Earnings Support
Holds earnings support
Second leg showing strong strength than first on
Inside bar forming on a pullback for an agressive entry
Western Midstream (NYSE:$WE) Reports First-Quarter 2024 ResultsWestern Midstream Partners (NYSE: ASX:WES ) announced its first-quarter 2024 financial and operating results, generating a record net income attributable to limited partners of $559.5 million and a record adjusted EBITDA of $608.4 million. The company also reported cash flows provided by operating activities of $399.7 million, generating a first-quarter Free cash flow of $225.0 million. The company announced a first-quarter Base Distribution of $0.875 per unit, or $3.50 per unit annually, representing a 52-percent increase over the prior quarter's distribution.
Western Midstream Partners (NYSE: ASX:WES ) achieved record natural-gas throughput across its asset base and in the Delaware Basin of 5.2 Bcf/d and 1.8 Bcf/d, respectively, representing a 2-percent and 3-percent sequential-quarter increase, respectively. It also achieved operated asset crude-oil and NGLs throughput of 374 MBbls/d, representing a 2-percent sequential-quarter increase. The company also achieved record Delaware Basin produced-water throughput of 1,149 MBbls/d, representing a 7-percent sequential-quarter increase.
Western Midstream closed all five previously announced non-core asset sales for total aggregate proceeds of $794.8 million, including $5.9 million in pro-rata distributions through closing. The company completed the start-up of Mentone III, increasing WES's operated, nameplate natural-gas processing capacity by 300 MMcf/d to approximately 1.9 Bcf/d at its West Texas complex in the Delaware Basin. The company repurchased $15.1 million of senior notes through open-market transactions during the first quarter and an additional $134.9 million to date in the second quarter, all at approximately 96-percent of par.
On May 15, 2024, ASX:WES will pay its first-quarter 2024 per-unit Base Distribution of $0.875, which is an increase of 52-percent compared to the prior quarter's distribution. First-quarter 2024 Free cash flow(1) after distributions totaled $1.5 million, and first-quarter 2024 capital expenditures totaled $205.4 million.
The company's President and CEO, Michael Ure, expressed satisfaction with the first quarter's success, citing increased throughput across all operated assets and products, new gathering records for natural-gas and produced-water throughput in the Delaware Basin, and continued growth in the DJ Basin.
WESWe own and operate oil, natural gas, and water gathering systems, natural gas processing plants, oil treating facilities, and crude oil, natural gas, and NGLs pipelines, and our equity investments in facilities and pipelines provide stable cash flow to our business.
$WES - Western MidStream#$WES
$WES broke box on 26 May. But had long wick on top.
On 27May got a close with good bar. Closed 27.77 range.
Can be entered on Monday @27.7 levels.
Also good RS value
$WES Western Midstream Partners#$WES
Yesterday took high of February.
But did not close above February high.
So i will enter 50% today to see how this goes.
Also yesterday volume was 10 day high volume.
$WES lookTrend Support and inside day. Potential breakout day off the support line. Will be watching
$WES Cup with HandleSome energy stock on way watch list are setting up to go again. Western Midstream is one that is looking almost ready to go.
Western Midstream Prtns (WES)- LIMITED PARTNERSHIP THAT OWNS 3 TYPES OF PARTNERSHIP INTERESTS IN WESTERN GAS PARTNERS LP (WES),
WES: Ascending Triangle, confirmedAscending triangle, confirmed
Pros:
Descending volume during formation
Volume increase at break out
Golden cross in blue
PPS above 50MA and 200MA
RS above 0, and ascending
ATR Ascending
R/R ratio above 9
250RSI above 50
200MA ascending
Target:
PT = 25.09$
Help how ever you can to keep this alive.
Thank you to those who have donated Coins!
Stay Humble, have fun, make money!
Trading Edge 2020 Portfolio -Trade #11- WES - Inverse H+STicker: WES
Position:
~ $7.00 Strike Call (Currently around $0.62/ contract)
~ May 15th expiry
~ Delta = 0.57
~ Risk no more than $300 (4-5 contracts)
Exit/ Profit Targets:
~ Close below the neckline = exit trade (approximately $6.00)
~ Initial target = $8.00
~ Secondary target = $11.00
Rationale:
~ Inverted H+S breakout
~ RSI confirming latest move higher
~ Presence of a gap (stretch target)
~ Moving averages are suggesting (at least near-term) a continued bounce
-TradingEdge
WES - Potential Inverse H+S - $9.00 TargetQuick pattern update here.
WES appears to have an Inverse H+S pattern forming on the lower timeframe.
A clean break from the pattern would target the $9.30 range, setting a conservative exit, with a close below the purported right shoulder would minimize potential for losses.
WES has been one on my list for a while lately and I recently closed a position for over 170% gain.
The news surrounding oil prices is negative, however WES is a refiner not a producer, so WES, if anything would have benefited (in the short-term) with the negative May contract prices.
I may look to do a more detailed write up on WES in the coming day or so, concerning position details.
-TradingEdge
Trading Edge 2020 Portfolio -Trade #9 - WES - Oil Lotto TicketTicker: WES
Position:
~ $4.00 Strike Calls
~ May 15th Expiry
~ Cost = $0.40/ contract (at time of writing)
~ Delta = 0.56
~ Run 5x contracts = $200 total outlay for the trade (subject to change)
Profit Targets/ Exit:
~ Due to the low cost of the trade, i will likely not run a stop on this position, but i have outlined a stop at the $2.50 level
~ Initial Target = $5.30 (325% gain)
~ Secondary Target = $8.00 (1000% gain)
~ Third Target = $11.00 (1750% gain) *predicated on a gap fill*
~ I will be rolling at each profit target also, in order to take money off the table as it appears
Rationale:
~ Although i believe that there is more downside for the broader market to come, it is also a very real possibility that the market is not ready to roll back over just yet, with that in mind, i think having some strategic long positions is prudent
~ The asymmetry nature of this trade is highly desirable, as even a move to the initial target yields very high rewards, albeit the risk is the total premium paid, hence the small position size
-TradingEdge
WESTERN MIDSTREAM PARTNERS LP - simple shortNYSE:WES
The last paper in the shorts for today
Like the previous three, the stock does not follow the market. I really like such papers, they are simple and clear. Once again, big money is traded on simple principles...
Accumulation suggests that having broken the level of $3, we can get a simple shorts.
Guys, if anyone can make money on stocks today, let me know. It's nice to know that you helped someone.)
Take care!
Trading Edge 2020 Portfolio - Trade #3 - WES - Short Term PutTicker: WES (right side is XLE for comparative purposes on a weekly)
Position:
- Feb 21st Expiry
- 5x $20 Strike Puts (ITM) - delta = 0.60 - cost = $1.38/ contract
- 5x $18 Strike Puts (OTM) - delta = 0.19 - cost = $0.35/ contract
- Should the stock move to the initial target, the OTM options will be more than covered by the ITM options increase in premium
Profit Target/ Exit:
- Initial target = $18.00 (green line)
- Exit for the $20 strike puts is 2 closes above the daily 21 ema (white line), there is no stop for the $18 strike puts, therefore the full premium is at risk (hence the lower capital allocation)
Rationale:
- shorter term play on the relative weakness of the energy sector
- XLE (energy sector ETF) has displayed a bearish moving average cross and appears to be deteriorating, as well as several stocks within the sector have appeared in my screening process as potential candidates, one of which is WES
- smaller position size, with overall capital allocation only 3.8% of portfolio, so a relatively small trade, that even if it goes against us will do no long term damage to the overall portfolio and still offers a good opportunity for roughly a 70% gain (at initial target)
- WES does appear to be a little on the oversold side of things, so a bounce is certainly possible, this is why the stop is 2 closes above the daily 21 ema, as this should help to keep from being shaken out of the position prematurely
-TradingEdge
WES. Breakout. Target 67.44-79.81Western Gas Partners (WES) broke out of the small downtrend (yellow).
It means that wave B is over and the wave C up has started.
Price could reach either the previous top tagged by wave A at 67.44
or hit further up to touch previous major top at 79.81 as highlighted with orange rectangle.
Quadruple BottomThe lack of clarity in the ADX and stable OBV show that WES is suitable for a range trading strategy.
As such, a long at the current quadruple bottom combined with a crossing MACD is appealing for a long entry.
A stop below the recent lows and price target of the 50% fib or higher is appropriate.
