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Long-Short Idea List: 02-06-19

Written by Lance Roberts | Feb 7, 2019

Each week we produce a chart book of 5 to 10 stocks which have hit our watch list for potential additions to our long-short equity trading portfolio.

We have broken down the list into two sections – Long and Short and have provided targets for potential actions.

Importantly, these equities are not part of our long-term investment themes and are far trading purposes only. We may, or may not, implement any of the ideas on this list. They are simply for consideration.

Also, it is entirely possible that our long-term themed equity model could be long a position which could show up on the “short-idea” list temporarily. Trading and investing, while having many commonalities, are different based on time frames and objectives and are not always handled exactly the same.

HOW TO READ THE CHARTS

There are four primary components to each chart:

  • The price chart is contained within the shaded area which represents 2-standard deviations above and below the short-term moving average.  
  • The Over Bought/Over Sold indicator is in orange at the top.
  • The Support/Resistance line (green) is the longer-term moving average which also acts as a trailing stop in many cases.
  • The Buy / Sell is triggered when the green line is above the red line (Buy) or vice-versa (Sell).

LONG CANDIDATES

ABT – Abbott Laboratories

  • Stock has held the long-term moving average as support and is currently pushing toward new highs.
  • Short-term positioning: Bullish
    • Currently long 1/2 position in Equity portfolio
    • Add to position on breakout to new highs.
    • Stop-loss is at $70

CHDN – Churchill Downs

  • Broke out of downtrend from all-time highs.
  • Close to triggering a weekly buy signal
  • Short-Term Positioning: Bullish
    • Buy at current levels
    • Trade target is $102.50
    • Stop-loss is currently $87.50

GOOG – Google

  • GOOG looking to break above resistance at the 200-dma.
  • Clost to triggering a weekly “buy” signal.
  • Short-Term Positioning: Bullish
    • Buy on breakout above resistance @ $1125
    • Stop-loss is currently $1100

HD – Home Depot

  • HD close to breakout above 200-dma
  • Also, close to registering a weekly “buy signal.”
  • Short-Term Positioning: Bullish
    • Buy on “breakout” above $187.50
    • Stop-loss is tight at $182.50 after “buy”

STX – Seagate Technology

  • STX is attempting to break above resistance at the 200-dma.
  • Also, close to triggering a “buy” signal.
  • Short-Term Positioning: Bullish
    • Buy on breakout above $47
    • Stop-loss is currently $45 after “buy”

SHORT CANDIDATES

TTWO – Take Two Interactive

  • TTWO missed earnings and broke through important support.
  • Previous recommendation was to short at previous levels with a stop-loss at $110
  • Recommendation is to take profits in 1/3rd of position.
    • Hold remaining 2/3rds of short-position
    • Move stop-loss down to $100

AVT – Avnet, Inc.

  • Avnet has rallied within a downtrend and is running into resistance.
  • Sell-signal still in place but improving which is keeping stop-loss tight.
  • Short-Term Positioning: Bearish
    • Short at current levels.
    • Stop-loss is currently $43

CPB – Cambell’s Soup

  • CPB is threatening to break important support in a longterm downtrend
  • A weekly “sell” signal has been registered.
  • Short-Term Positioning: Bearish
    • Short at current levels.
    • Stop-loss is currently $36

GPS – Gap, Inc.

  • GPS remains on a “sell signal” in a protracted downtrend.
  • Short-Term Positioning: Bearish
    • Short at current levels.
    • Stop-loss is currently $26

EQT – EQT Corp.

  • Recent rally failed in downtrend.
  • EQT is oversold but the overall bearish trend is firmly intact.
  • Short-term positioning: Bearish
    • Short at current levels
    • Add to short at failed rally at @22
    • Stop-loss is currently $24.

Talk with an Advisor & Planner Today!

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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube

2019/02/07
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