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Chart of the Day: Coke (KO)

Oct 12, 2015

Historically, we’ve done quite well with Coke…

Using nothing more than Bollinger Bands, RSI, MACD, W%R, MFI and candlesticks, we’re able to predict pivots off oversold and overbought conditions up to 85% of the time.  Nowadays, as Coke over-extends to $42 a share, our technical pivot points are indicating near-term reversal. 

 

Chart of the Day: Teva Pharmaceutical Oversold…

Oct 12, 2015

After falling from $72.50 highs to less than $$60 a share, TEVA has become quite an oversold bargain. Not only is momentum shifting with regards to MACD, MFI and RSI, but the company has a December 2015 catalyst that could send the stock screaming higher with patience.

On December 9, 2015, the company will face FDA panel review for the treatment of inadequately controlled asthma in adults and children. The drug – Reslizumab – reportedly goes after the molecules that cause asthma.

“An injection once a month was given to hard-to-treat asthma patients,” according to reports “Their inflammation went down and they had a 50 percent reduction in severe asthma attacks. ‘It takes some of our severe asthma patients from being really out of control to being well-controlled.’”

“Doctors are hoping this new drug will be available within the next two years. Reslizumab will not work for everyone, but a simple blood test will show who it will help and who it won’t.”

With that catalyst in place, consider buying the TEVA stock as high as $61 and / or buy to open the TEVA January 2016 60 call up to $3.

 

InterOil: The Easiest Money Ever Made

Oct 09, 2015

On September 15, I noted:

It's time to buy IOC again, as our technical pivot points become over-extended. Plus, Goldman Sachs just added the stock to its Conviction Buy list with a PT of $45 a share.  Consider buying the underlying stock up to $38 and / or the IOC December 2015 35 calls at market.

As of today, IOC trades just under $39. The calls last traded around $5.50.  Take the gains.

It shouldn’t be this easy to make money.

 

 

 

Zumiez (ZUMZ): 264% and 29% in Less than a Month…

Oct 08, 2015

Well… that was easy.

Just weeks after recommending a buy on the ZUMZ underlying stock and the November 15 calls, the stock exploded as expected.

ZUMZ just ran to $18.55 on the day giving us a 29% gain on the stock. The move also sent the November 15 call to a bid ask of $3.60 x $4.50. Using a median price of $4, that gives us a 264% gain from a $1.10 entry price.

All we had to do was stick to our system. RSI, MACD and MFI were all incredibly oversold. We bought. We made money. And now we’re walking away.

Not too shabby at all…

If you bought in, close both positions today.

At the moment, I’m a bit concerned the stock has run up too far too fast in recent weeks. We could see a near-term pullback in the name before another attempt to refill the $22.50 gap. Consider buying to open a small position in the ZUMZ November 2015 17.50 put up to $1.20.

 

Chinese Stocks: Wall Street Finally Wakes Up…

Oct 07, 2015

Since June, the Chinese market she more than 40% of its value as investors fled. In recent weeks, though, some of the biggest firms, including London-based Algebris believes now is the time to buy…

“We are long Chinese equities for the first time in our history,” they noted, as quoted by The Wall Street Journal.

I find this a bit funny, though… even late.

We’ve been recommending a buy on China since late August near the bottom.

At the time, I was mocked.

It happens, though. Not big deal. I noted that a great way to trade China here is by buying the Direxion Daily China Bull 3x Shares (YINN), the iShares MSCI China Index Fund (MCHI) and the iShares FTSE China 25 Index Fund (FXI).

We were able to buy the YINN at $18.50. It now trades at $22.13.

We were able to buy the MCHI at $44. It now trades at $47.25.

We were able to buy FXI at $35.70. It now trades at $38.40.

While we booked gains on each of these weeks ago, we’re still holding the second halves of each… We believe the rebound has only just begun.

 

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