Trade of the Week
Seasonal Stock Setup: Defense Industrial in Strong Trend Amid Global Tensions
General Dynamics (GD) – Defense names have been showing relative strength since the recent tensions in Russia and Ukraine and continue to be in strong trends on their charts. GD specifically has some positive seasonality as well in February with 8 of the last 10 years...
Seasonal Stock Setup: Base Materials Leader Setting up Cup and Handle Weekly Chart
Freeport-McMoran (FCX) – Materials like copper and gold and aluminum are staying hot and the producers like FCX are still trending very strong as they see buyers on pullbacks. FCX is setting up a big weekly chart breakout in a cup and handle pattern as it consolidates...
Credit Spread of the Week: Fade Small Caps After Retrace to Resistance
Russell 2000 Small Caps (IWM) - The Russell Small Caps index has been a leading group to the downside since peaking in early November and is in a firm downtrend even with the recent rebound back to its YTD VWAP near 205. With the overall market starting to fade the...
Seasonal Stock Setup: Chemicals Stock Basing Into Strong Part of Calendar
Olin Corp (OLN) – Materials and Chemical sector stocks have been showing nice relative strength as the value trend continues to trend. OLN is a $7.67B chemical name that trades with a higher beta so it can move. The stock has strong seasonal odds in the Feb through...
Seasonal Stock Setup: Software Group Basing for Next Trend Move
Palo Alto Networks (PANW) – Software stocks have started to rebound nicely off lower base levels and now as a group have gotten above key 21 EMA levels as IGV pushes up into a February seasonal period of strength which can continue off oversold levels. PANW is one...
Seasonal Stock Setup: Healthcare Provider Breakout Points to Gap Fill Higher
Cardinal Health (CAH) – CAH showing up on my scan for strong February seasonality and breakout of monthly value area today. The $14.2B health care provider reported earnings in the past week and has since seen a strong advance back above its 200 EMA and the stock...
Seasonal Stock Setup: Athletic Apparel Name Looking to Continue Strong February Trend
Skechers (SKX) – SKX is a consumer goods name that had earnings last week and beat on EPS and Revs (+24.4%). The stock popped strongly back over its 55 and 200 EMA on Friday to close the week. Today the stock showed relative strength and closed higher again as the...
ETF Sector Relative Strength Corner: Travel & Leisure Group Setting Up Reopening Trade
Invesco Dynamic Leisure Entertainment ETF (PEJ) - The Travel and Leisure PEJ fund is a group that is holding up relatively great the early part of 2022 and with several holdings that should benefit from the reopening theme headed into Spring/Summer it's an ETF that...
Credit Spread of the Week: Software Name Basing for Rebound After Gap Fill
Atlassian (TEAM) - The software weakness to start the year appears to have bottomed in the short term as several names have started to base out and create inverted bottoming patterns near long term support like the 200 EMA. TEAM fits that criteria as it bounced...
Seasonal Stock Setup: Online Travel Leader Ready to Breakout into Spring
Expedia (EXPE) – The travel sector has held up quite well post Omicron and with that likely peaking and the market looking ahead to Spring and Summer travel season quickly nearing it appears the strong seasonality in EXPE can send it higher. The name has several...