Trade of the Week
Weekly Options Technical Trade Set-Up
Pinduoduo (PDD) shares flagging above the 200 day EMA and bullish MACD settting up a move to fresh 2022 highs above 70. The stock has also has a gap to fill into 75. Trade to consider: Long PDD weekly $67 strike calls. Trigger $66.75, Target $75, Stop $62
Seasonal Stock Setup: Heart Valve Maker Poised to Rebound into Summer Months
Edwards Lifesciences (EW) is a $58.2B med tech name that trades at 32.7x earnings, 8.9x sales, with a FCF yield of 2.7%. The company is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve....
Seasonal Stock Setup: Medical Device Leader at Long Term Support
Intuitive Surgical (ISRG) ISRG is a $72B med tech name that trades at 40.7x earnings, 11.5x sales, with a FCF yield of 2%. ISRG has a strong seasonal history between June, July and August with 8 of the last 10 June’s higher for an average return of +5.1%. Average...
Seasonal Stock Setup: E-Commerce Leader Double Bottoming into Strong Month
Amazon (AMZN) – AMZN is a $1.1T online leader that trades at 40x earnings, 2.1x sales, with a projected FY23 FCF yield of 4.8%. AMZN has strong seasonality starting in June and going through its July Prime Day which is planned for July 12-13 this year. Historically...
ETF Sector Relative Strength Corner: Biotech Making Higher Low Into Quarter End
SPDR S&P Biotech ETF (XBI) - XBI is one of a handful of biotech ETFs available, offering exposure to a corner of the market that can perform well during periods of consolidation and is capable of big jumps in the event of major drug approvals. XBI focuses on a...
Credit Spread of Week: Beaten Up Semi Leader Back at Long Term Volume Support
Advanced Micro Devices (AMD) - AMD is a $132B Semi leader that has been sold off back to its yearly VPOC support of 81, a key level with the most traded volume in 2021. A spot for prices to stabilize and likely rebound at least back to its down trending moving...
Seasonal Stock Setup: E-Commerce Name Showing Relative Strength Uptrend
JD.com (JD) – JD is a $99.5B Chinese e-commerce company consisting of online retail, online marketplace and marketing services in China. JD has had strong seasonal tailwinds in June being higher 4 of the last 5 years for an average June return of +8.4%. Outside of...
Seasonal Stock Setup: Relative Strength Retailer Showing Seasonal Tailwinds
Dollar General (DG) – DG is a $52.4B discount retailer that offers merchandise, including consumable items, seasonal items, home products and apparel. DG has had strong seasonal tailwinds in June the last 10 years showing 7 years finishing the month higher for an...
Credit Spread of the Week: Bear Call Spreads For Payments Name Rolling Over
Visa (V) - V is a $439B leader in digital payments and has held up relatively well in this bear market but growing concerns that the consumer is tapped out and consumer credit a potential growing worry. V hit its 200 day EMA and YTD VWAP resistance the past week near...
Seasonal Stock Setup: Top Solar Play Trending into Sunny Calendar Months
Enphase Energy (ENPH) – ENPH is a $27B global energy technology company, delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one intelligent platform. The Company revolutionized the solar industry with its microinverter...