◄ back to all posts

Long-Short Idea List: 07-25-19

Written by Lance Roberts | Jul 25, 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

NVDA – Nvidia, Corp

  • Chip stocks have been trying to come back since their beating last year. While the trade war is not over, the technical backdrop has improved enough to warrant a trade.
  • There is still a risk with earnings so stops are tight.
  • With a buy signal registered, and moving averages positive we can add exposure.
  • Buy at current levels.
  • Stop level is $160

GOOG – Alphabet, Inc.

  • Last week, we recommended a trading long in GOOG which we added to the long-short portfolio.
  • GOOG has still failed to get legs under it but held up well in the face of the DOJ investigation into potential anti-trust issues.
  • A break above the 50-dma, currently testing, gives GOOG decent upside.
  • We are moving our stop-loss up to $1120-1125.

CRM – Salesforce.com

  • We added CRM to the Long-Short portfolio last week as well.
  • With earnings season approaching, an upside surprise could give the position a lift and stop-loss levels are very close.
  • CRM broke above the 50-dma last week, which opens up old highs as a target.
  • Stop loss is moved up to $155.

DAN – Dana, Inc.

  • DAN has been consolidating for quite some time now and is looking to try and make a move higher.
  • With DAN on a buy signal, look for a breakout above $21 to add a position.
  • Stop loss is tight at $18 after purchase.

EMN – Eastman Chemical Co.

  • EMN finally broke above its long-term downtrend and is back on a buy signal.
  • Buy 1/2 position at current levels, and the second half on a break above $85.
  • Stop is set at $75 – honor thy stop.

SHORT CANDIDATES

BLK – Blackrock, Inc.

  • We recommended a short-position last week in BLK which is still very overbought and at the top of the trading range.
  • If the market gets sloppy over the next couple of months we will likely see downside in the shares.
  • Short at current levels.
  • Target for trade is $410
  • Stop-loss is set at $485

CAT – Caterpillar, Inc.

  • CAT missed earnings pretty badly as the trade war continues.
  • We recommended a short previously, and a break below current support will likely create another opportunity.
  • Short on a break below $130
  • Target for trade is $110-120
  • Stop loss is $136

GPC – Genuine Parts, Co.

  • We stated last week that GPC had been running along its bullish trend line for quite some time.
  • Currently on a sell signal, and struggling with support, a break of that trendline will provide a reasonable downside target.
  • GPC broke that trendline this past week and quickly headed to our target.
  • Target is $90 but take a little profit now.
  • Close short at $98 for a profit stop.

BMY – Bristol Meyers Squibb

  • BMY has been struggling for a long-time now which doesn’t make it a “terrific” short candidate.
  • However, the downtrend remains intact and the recent rallied failed which has now triggered another sell signal.
  • Short at current levels.
  • Stop is set at $46
  • Target for the trade is <$40

BAM – Brookfield Asset Management

  • BAM is extremely extended and is working to hold support with a “sell signal” approaching.
  • Parameters are fairly tight for a trade.
  • Sell short on a break of support at $48
  • Target is $45 initial with $40 as the main target.
  • Stop is set at $49.50

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

2019/07/25
◄ back to all posts
401 K