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Long-Short Idea List: 07-18-19

Written by Lance Roberts | Jul 18, 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

ALB – Albermarle Corp.

  • Value stocks have been out of favor for a long-time. ALB has gotten extremely cheap and beaten up.
  • With a buy signal close to registering from an oversold condition there is a decent setup for a trade with a tight stop loss.
  • Buy at current levels.
  • Stop level is $63

GOOG – Alphabet, Inc.

  • We previously recommended going long GOOG, then shorting GOOG, and last we suggested going back long again.
  • GOOG has gotten oversold and is lagging the rest of the tech market currently. With earnings season approaching there is upside potential for a trade.
  • A break above the 50-dma, currently testing, gives GOOG decent upside.
  • Buy at current levels as stop loss levels are very close.
  • Stop-loss is currently $1100

CRM – Salesforce.com

  • We noted last week that CRM has been holding support and consolidating for the last few months.
  • 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.
  • Add a position at current levels.
  • Stop loss is set at $150.

INTC – Intel Corp.

  • After a brutal beating following last earnings, the semi-conductor space has shown some signs of life.
  • With INTC above its 50- and 200-dma there is a potential trade with a tight stop loss.
  • While on a sell signal currently, that signal is beginning to reverse.
  • Buy 1/2 position at current levels.
  • Stop loss is tight at $47.50

CVS – CVS Health Corp.

  • We recently added a position in CVS to our portfolio as the buy signal is approaching.
  • CVS has now triggered a buy signal so we are re-recommending a long-position for now.
  • A break above $60 will give CVS legs to the upside.
  • Buy at current levels.
  • Stop is set at $50 – honor thy stop.

SHORT CANDIDATES

BLK – Blackrock, Inc.

  • BLK is 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

CFG – Citizens Financial Group.

  • CFG has been in a long-term consolidation pattern.
  • With a sell signal approaching and very tight parameters, there is a decent short-setup currently.
  • Short on a break below $34
  • Target for trade is $28
  • Stop loss is $36

GPC – Genuine Parts, Co.

  • GPC has 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.
  • Short on a break below $101
  • Target is $90
  • Stop loss is $105

SPG – Simon Property Group

  • SPG has been struggling relative to REIT’s as a whole.
  • Currently on a fairly major sell signal and sitting on important support, shorting parameters are fairly tight.
  • Short on break of support at $160
  • Stop is set at $165
  • Target for the trade is $140

TIF – Tiffany and Co.

  • TIF is flirting with an important sell signal combined with the potential break of a downtrend.
  • Sell short on a break of support at $92.50
  • Target is $75
  • Stop is set at $96

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

2019/07/18
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