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Long-Short Idea List: 06-06-19

Written by Lance Roberts | Jun 6, 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

AMT – American Tower

  • Our first long-recommendation for AMT was in January of this year. Since then, the stock has gone parabolic as the “yield chase” has ensued.
  • Take profits for now.
  • With the buy signal EXTREMELY extended, lower panel, a correction is going to occur at some point or at least a length consolidation as seen in 2017-2018.
  • Move stops on all positions to $190

ALE – Allete

  • We stated last week that if ALE broke out to new highs positions could be added.
  • If you are currently long ALE, hold with a stop at $78.
  • If not, you can take on a trading position with the breakout to new highs.
  • Stop-loss on new positions is currently $81

APD – Air Products

  • We previoulsy recommended a long-position in APD back in January.
  • The trade has gotten crazy overbought as APD has gone parabolic.
  • Take profits and reduce overall weight to 1/2 position and wait for a correction to add back into it.
  • Stop-loss is $200

CVS – CVS Healthcare

  • We previously took on a position in CVS but were ultimately stopped out. We like the business model and the fundamental backdrop of the company.
  • The trade setup is not yet ideal but the basing process has allowed CVS to get deeply oversold. This provides a reasonable risk/reward point to start accumulating a position.
  • Buy 1/2 position at current levels with a very tight stop at $52
  • Add second 1/2 on move about $58 that remains for more than a week.
  • Stop Loss is set tight at $52

WMT – Walmart

  • Last week we discussed adding a position in WMT on a breakout above resistance.
  • WMT has continued to push that resistance and looks to be working a breakout at recommended levels.
  • Buy above $103.50
  • Stop loss is set at $100

SHORT CANDIDATES

GOOG – Alphabet Inc.

  • Last week, we recommended taking on a short-position in GOOG.
  • The initial target was $1000 but GOOG got in the neighborhood at $1025.
  • Close out the position and look for a re-entry on a failed attempt to get above $1100

ALB – Albemarle Corp.

  • In January of this year we recommended a short-position on ALB.
  • Targets have now been reached and ALB is deeply oversold.
  • Close out the position and take profits.

APA – Apache

  • In March we recommended a short position in APA given the potential weakness in oil prices.
  • Close out short positions and take profits.

AMC – AMC Entertainment Holdings

  • In May we recommended a short position in AMC.
  • Initial targets have been reached and while AMC is oversold, it has just registered an important sell signal.
  • Close out the short position for now.
  • Look to re-enter the position on a failed rally to $14.
  • Look for a break below $50 to establish the short position.

BT – BT Group

  • We last recommended a short-position in BT Group back in April.
  • The short has now hit our previous targets and is oversold.
  • Close out the short-position and look to re-enter on a failed rally to $14.

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

2019/06/06
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