The shares of Live Nation Entertainment, Inc. (NYSE: LYV) are up 1% to $ 86.80 on its most recent review after the entertainment company named Joe Berchtold as CFO yesterday. In addition, ASM Global has expanded its partnership with Ticketmaster by enabling the company to conduct ticket sales for shows promoted by Live Nation. The stock is already up 75.8% year-over-year, hitting a record high of $ 94.63 on March 3rd. The even better news is that LYV recently pulled back on a trendline with historically bullish implications, suggesting the stock could climb back up the charts soon.
Specifically, the security was just within one standard deviation of its 80-day moving average after spending about a month above this trendline. According to data from Schaeffer’s Senior Quantitative Analyst Rocky White, 10 similar signals have occurred in the past three years. Live Nation stocks returned positive returns 70% of those times a month later, up an average of 7.3%. From its current position, a similar move would bring the LYV above the $ 93 mark, which is just below the stock’s record high.
LYV 80 days
A short squeeze would keep the stock in the back of the wind. Short rates rose 10.1% over the last period, and the 12.95 million stocks sold short now account for a whopping 8.6% of the stock’s free float, nearly two weeks of pent-up purchasing power.
Now seems like a good opportunity to weigh Live Nation stock’s next move with options. The Schaeffer’s Volatility Index (SVI) of 34% is in the extremely low 1st percentile of its annual range. This means that option players are pricing in low volatility expectations.