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Chart of Day: Bristol Myers (BMY) Far too Oversold

Jan 22, 2017

Shares of Bristol Myers (BMY) took a bad hit the other day, falling from $60 to $49.23. However, it seems to have caught prior support at October 2016 lows. As long as that holds, the stock could bounce shortly from oversold MACD, RSI and Money Flow points, as well. Apparently, one of the company’s many drugs had bad news.

But remember, this is BMY. It’s an industry heavyweight. It’s simply down temporarily, in our opinion. And we’re trying to take full advantage of that. Consider buying to open the March 2017 49 calls at market. BMY is far too oversold.

Chart of Day: One of the Best Ways to Trade the Trump Presidency

Jan 22, 2017

This may just be one of the most boring stocks out there, but it’s also one of the most rewarding. The maker of construction aggregate is one of several beneficiaries of Donald Trump’s trillion-dollar infrastructure program to update the nation’s aging roads and highways.

As it begins to break out of recent consolidation, we’d like to see a test of $137.50 highs. It’s just now breaking above triple top resistance around $127.50.

We have to remember that according to the American Society of Civil Engineers, we need at least $5.2 trillion in infrastructure spending to bring our roads to acceptable levels over the next 25 years. Highways are in desperate need of repair. And for that you need construction aggregate. Even stocks like Jacobs Engineering (JEC) are picking up considerable attention as we move toward improving the nation’s ailing infrastructure. Again, it may seem like the most boring trade ideas in the world. But it’s proving to be some of the most profitable. Smart investors are long.

There are two ways to trade it. One, buy to open February 2017 130 call at market. And, or two, buy to open May 2017 135 call at market.


Chart of Day: Century Aluminum (CENX) Still Running

Jan 19, 2017

On December 20, 2016, we noted that CENX was a good buy, considering we could see a jump in aluminum prices. And that’s exactly what happened. Since that note, the stock jumped from a low of $8.55 to $13.03. If you like the gain, exit half here to secure the win. Hold the other half. This run is far from over.

Chart of Day: The Buck Stops with Trump... How to Trade

Jan 18, 2017

The buck stops with Trump apparently. 

After a 13% jump from mid-2016 lows, the U.S. dollar just broke support.  And, at this pace could retest a December low of near 100 before long, as Trump calls the currency "too strong," blaming China, which is reportedly holding down its currency.

“Our companies can’t compete with them now because our currency is too strong,” he noted. “And it’s killing us.”

Private equity firm, Carlylye Group has noted the strength of the U.S. dollar is a great risk to the overall economy, as well.

That’s because dollar strength has the potential to hurt U.S. companies that sell products abroad by making their goods more expensive, as noted by The Wall Street Journal.

While one of the biggest gainers on weakness has been gold, bearish bets on the dollar should work out well, too, such as the   Power Shares DB US Dollar Index Bearish (UDN) fund, a buy at market prices.

Chart of Day: Shoe Carnival likely to Rebound

Jan 17, 2017

After a bad drop from $29 to $23.50, Shoe Carnival (NASDAQ:SCVL) has become technically oversold, and likely to turn higher based on over-extensions on MACD, RSI and Money Flow indicators. The company – an American retailer of footwear – recently saw its stock pull back on recent results and outlook. However, it has recently announced a $50 million share repurchase program and declared a quarterly cash dividend of seven cents a share to be paid January 23, 2017 to shareholders of record as of January 9, 2017. In addition, the company expects for fiscal net sales to fall in a range of $1 billion to $1.003 billion and expects slight improvements in same store sales.  Buy just the stock at market prices.



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