Trade of the Week
ETF Sector Relative Strength Corner: Semi’s Leading Upside into Summertime
VanEck Semiconductor ETF (SMH) - This ETF tracks the overall performance of the 25 largest, U.S. listed companies that produce semiconductors, a crucial component of modern computing. Semiconductor chips act as the brains to numerous devices that we rely on today,...
Credit Spread of the Week: Sell Put Spreads in Energy Leader Back at Support
Chevron (CVX) is a $270.5B petroleum leader that engages in integrated energy and chemicals operations. The stock trades at 8.3x earnings, 1.3x sales, FCF yield of 10.3% and dividend yield of 4.2%. The stock has pulled back recently to the 200 EMA and last week tested...
Weekly Options Technical Trade Set-Up
Teladoc (TDOC) shares setting up a tight consolidation above the monthly value area and potential to pop out of the coiled flag pattern to hit 45-50 overhead. Trade to consider: Long TDOC weekly $41 strike calls. Trigger $41, Target $45, Stop $38
Seasonal Stock Setup: Pharma Leader Ready to Breakout to Fresh Highs
Merck (MRK) is a $237B pharma powerhouse that trades at 12.7x earnings, 4.5x sales, 5.7% FCF yield and a 3.0% dividend yield. Short interest is 0.8%. The stock has a strong seasonal history in July with 7 of the last 10 years higher for an average return of +2.5%....
Seasonal Stock Setup: Healthcare Distributor Basing Into Seasonal Tailwind
Cardinal Health (CAH) is a $14.5B healthcare distributor that trades at 9.8x earnings, 0.1x sales, 7.3% FCF yield and a 3.9% dividend yield. Short interest is 2.8%. The stock has a strong seasonal history in July with 8 of the last 10 years higher for an average...
Seasonal Stock Setup: Commercial Real Estate Name Flagging Above Value Area
Realty Income (O) is a $41.8B real estate investment trust that trades at 17x FFO (funds from operations), 1.5x NAV, and a 4.3% dividend yield. Short interest is 2.8%. The stock has a strong seasonal history in July with 8 of the last 10 years higher for an average...
ETF Sector Relative Strength Corner: Software Gaining Momentum Off Recent Support
iShares Expanded Tech-Software Sector ETF (IGV) - This ETF seeks to replicate a benchmark that is composed of various software companies. IGV invests in only U.S. companies, so this may not be the right fund for those who wish to gain exposure on a global scale. At...
Weekly Options Technical Trade Set-Up
Bilibili (BILI) shares flagging just under the monthly value high near 27 and potential to pop out of the coiled wedge pattern to hit 30 overhead. Trade to consider: Long BILI weekly $27.50 strike calls. Trigger $27.50, Target $30, Stop $26
Credit Spread of the Week: Materials Name Oversold into Support
CF Industries (CF) is a $17.9B materials company that is a leading global manufacturer of hydrogen and nitrogen products for clean energy, emissions abatement, fertilizer, and other industrial applications. The stock has pulled back recently to the 200 EMA longer term...
Seasonal Stock Setup: Auto Retailer Showing Relative Strength Near Highs
Penske Auto Group (PAG) is a $8.3B automotive name that trades at 6.7x earnings, 0.4x sales, with a FCF yield of 13.5% and a 1.8% dividend yield. The stock has a strong seasonal history in July with 7 of the last 10 years higher for an average return of +9.1%. This is...