Trade of the Week
Seasonal Stock Setup: Restaurant Chain Oversold into Strongest Calendar Month
Domino’s Pizza (DPZ) – The Consumer Discretionary sector has worked its way back up after the January selloff in markets and one name that looks interesting off lows is DPZ. The stock got nearly to its anchored VWAP off March 2020 lows at 413 before bottoming at 421...
Seasonal Stock Setup: Defense Industrial Near Highs Into Strong February
Raytheon (RTX) – The industrial group has shown a nice rebound off recent lows with the market but many of its more defensive components are still near highs such as RTX which stayed above its 55 EMA on a closing basis in January which not many names can say. RTX has...
Seasonal Stock Setup: Quality Software Name Finding Long Term Support
Salesforce.com (CRM) – The market has rebounded off its recent late January lows and appears that some growth names have put in some tradable bottoms headed into February. One stock that has bounced off its 2021 value area low and VPOC zone of support is CRM. The...
ETF Sector Relative Strength Corner: Oil Patch Exploring Higher Prices
SPDR Oil & Gas Exploration & Production ETF (XOP) - The XOP Energy ETF is one of the better groups holding up through the first month of 2022 as oil prices overall stay strong and Energy stocks about the only sector sustaining RSI readings above 50 showing a...
Bullish Open Interest in Tech Name Awaiting CEO Catalyst
Splunk (SPLK) a tech name that has shown relative strength since early January and bullish open interest accumulating since mid-December including the May $150/$175 call spread, September $170/$190 call spread, 1000 February $115/$135 call spreads bought for $5 on 1/5...
Credit Spread of the Week: Semi Leader Correction Offers Bull Put Spread Trade
Nvidia (NVDA) - The tech wreck in January spilled over to Semi stocks finally as they were largely the last group to succumb to weakness but now with key names like NVDA back to its long term 200 EMA support level and top of 2021 yearly value area being tested it...
Credit Spread of the Week: Oversold Retailer Hitting Value Support Ready to Bounce
Home Depot (HD) - Many retail stocks have been hit in the recent wave of market selling and after a strong 2021, HD finds itself right back at long term support in the form of its 34 week moving average and 200 day EMA. Also, the 345 level represents the top of yearly...
Utility Poised for New Highs Ahead of Key Strategic Event
Exelon (EXC) shares holding up well recently and consolidating in a multi-week bull flag just above a recent range breakout at $55 which has remained supportive. EXC is above its 8- and 21-EMA and a breakout above $58 has upside to $61 and then $65. EXC has seen some...
Seasonal Stock Setup: Defensive Commodity Shining in a Sea of Red
Gold Trust (GLD) – The market continues to show weakness and one of the few solid charts out there forming a potential bigger breakout is that of gold futures. The GLD ETF is a simple way to participate in a trend move instead of picking a miner. Gold is in the...
Seasonal Stock Setup: Exchange Leader Breaking Out with Volatility Increasing
CME Group (CME) – The exchange stocks generally do well when market volatility pops higher as the business benefits from increased volumes and interest. CME has the best technical chart structure as it has held above its 55 EMA on every dip since October and looks...