Trade of the Week
Bull Put Spreads in Top Retailer Showing Relative Strength
Lowe’s (LOW) has pulled back to the 21-week EMA and 2022 yearly POC near 200 recently and is an ideal area on the chart to sell bull puts spreads expecting the 200 level to be support into the next month as the stock tries to form another higher low since its bottom...
Seasonal Stock Setup: Utility Name Forming Flag in Strong Calendar Month
Southern (SO) has a strong seasonal history in January with 8 of the last 10 years higher in January for an average return of +4.0% and strong monthly returns for a lower beta utility name. The only other calendar month with similar returns the past decade has been...
ETF Sector Corner: Metals and Mining Shining to Start the Year
SPDR S&P Metals & Mining ETF (XME)- This ETF offers a way to access U.S. companies engaged in the extraction of metals and other natural resources. As such, XME can be useful as a tool for tilting portfolio exposure towards the mining sector or betting on a...
Bull Put Spreads in Med Tech Robotics Leader Pulling Back in Strong Trend
Intuitive Surgical (ISRG) has pulled back to the 55-day EMA this month after a strong rally into the end of 2022 where it hit a high near 285 and has since started to rebound off the 255 level with the 200-day EMA just below at 247.50 offering strong support. Earnings...
Quick Weekly Trade Setting Up in Energy Drink Leader
Seasonal Stock Setup: Leading Quick Service Food Name with Strong January Tailwind
Chipotle Mexican Grill (CMG) has a strong seasonal history in January with 8 of the last 10 years higher in January for an average return of +4.7% and perhaps driven by coming Super Bowl demand in February as fast casual restaurants benefit. The only other calendar...
ETF Sector Corner: Communications Group Carves Out Bottoming Base
iShares U.S. Telecommunications ETF (IYZ)- This ETF offers exposure to the U.S. telecom market, making it one option available to investors implementing a sector rotation strategy or focusing on corners of the domestic stock market that generally offer attractive...
Bull Put Spreads in Solar Name Pulling Back to Long Term Support
Enphase Energy (ENPH) has faded back down to its one-year VWAP near 230 and this level also coincides with the 50% retracement of the entries rally up from the May lows at 130 to the highs at nearly 340 made just last month. The solar sector has seen a bit of a...
Electronics Retailer Setting Up Quick Breakout Trade
Seasonal Stock Setup: Sporting Retailer Trending Higher into Strong January
Dicks Sporting Goods (DKS) has a strong seasonal history in January with 7 of the last 10 years higher in January for an average return of +4.5% and perhaps driven by coming Super Bowl and springtime season of outdoor youth sports. The only other calendar month with...