◄ back to all posts

Long-Short Idea List: 04-11-19

Written by Lance Roberts | Apr 10, 2019

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

GDX – Gold Miners ETF

  • We have owned gold-miners for a while with expectations the Fed will mis-step and drive investors toward safehavens like gold. That likelihood is becoming more likely.
  • Currently on a buy signal, GDX has been running along the 50-dma moving average support. A break above $23 will likely see higher prices.
  • Buy at $23 with an initial target of $25
  • Stop level is $22

GS – Goldman Sachs Group

  • GS is trying to break above the 200-dma with the 50-dma close behind to cross above it.
  • Currently on a “buy” signal and not tremendously overbought, there is upside to the position currently.
  • We added a position to our long-short portfolio at $202
  • We have an initial target for $215-220.
  • Stop-loss is currently $190

EGHT – 8×8, Inc.

  • EGHT is not a fundamental play by any stretch of the imagination, however, for a “trade” there is a decent setup.
  • Just triggering a buy signal and with the 50-dma crossing above the 200-dma, there is upsdie to recent highs.
  • Buy at current levels.
  • Target for trade is $23
  • Stop-loss is $19.50

VLO – Valero Energy Corp.

  • VLO is in technically and fundamentally in a good
  • Having just triggered a buy signal recently, and starting to recover from an oversold condition, the technical setup for a trade is good.
  • Fundamentally, VLO benefits from positive crack spreads and the recent run up in oil prices should bode well for earnings.
  • We took on a position in the long-short portfolio and will add to the position if our thesis plays out.
  • Stop Loss is set at $85

WELL – Welltower, Inc.

  • WELL has consistently tested and bounced off of the running 50-dma.
  • This is a very tight trade with a target of $79-80
  • Buy at current levels.
  • Stop is set at $75

SHORT CANDIDATES

BRK.B – Bershire Hathaway B-Shares

  • With BRK.B in a fairly tight consolidation range, our expectations is that the HNZ debacle from last quarter is not yet behind them.
  • Furthermore, BRK.B has failed to perform with the rally in the market which makes it susceptible if the market declines.
  • Short at current levels.
  • Target for trade is $190
  • Stop-loss is set at $206

WFC – Well Fargo & Co. (AKA “Wiley F$%#@*! Criminals”)

  • WFC continues to erode due to scandal after scandal from their actual criminal activities conducted over the last several years.
  • This is finally started to work its way through their system and customers are moving to other banks. Assets under management are declining and they will likely report a “not so great quarter.” It will be their outlook for redemption which may save the bank in the near term.
  • The recent failure at the 50-dma suggests lower prices in the near-term.
  • Short at current levels
  • Target for trade is $44
  • Stop loss is $50

TSLA – Tesla, Inc.

  • TSLA has continued to struggle with cash burn, production, bad press, and issues with the SEC.
  • There is a high risk of disappointment in this earnings seasons report particularly as auto sales have declined.
  • TSLA continues to struggle in a downtrend of the 50-dma and the $260 level is extremely critical support.
  • However, if the $260 level is broken, the downside will be fast and furious and unshortable at that point.
  • Short at current levels with a stop @290
  • Add to the position on a break below $260
  • Target is initially set at $190

UAA – Under Armour, Inc.

  • UAA has struggled during the entirety of the rally from the December lows.
  • Currently the setup for a short is not great, but there is a decent expectation of an earnings related disappointment particularly if recent retail sales reports are accurate.
  • Short at current levels.
  • Stop is set at $23
  • Target for the trade is $17

VTR – Vertias, Inc.

  • VTR is very close to triggering a “sell” signal and is extremely overbought.
  • After a failure at multiple tops, look for a break below $62 combined with a confirmed sell signal to enter the short.
  • Short below $62
  • Set stops at $64.50
  • Initial target for trade is $60

Talk with an Advisor & Planner Today!

lance_sig

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

2019/04/10
◄ back to all posts
Holistic