Trade of the Week
Seasonal Stock Setup: Aluminum Giant Breaking Consolidation Into Year End
Alcoa (AA) - Alcoa is one of the largest aluminum producers in the world and setting up to revisit its highs into a seasonally aligned strong December. Aluminum was one of the worst affected commodities due to the spread of coronavirus. Aluminum prices dropped from...
Seasonal Stock Setup: Materials Stock Coiling into Strong Year End Seasonality
Teck Resources (TECK) - TECK is the largest Canadian diversified natural resources company and focuses on the mining and development of copper, zinc, and coal. The stock has been a leading materials powerhouse in 2021 gaining over 52% year to date in a strong trend...
Seasonal Stock Setup: Financials Setting Up for New Highs into Strong December
Morgan Stanley (MS) - The banks have been consolidating the last few months as interest rates dance around the 1.50% yield mark. The end of year is seasonally a fairly bullish time for financials with XLF being up 8 of the last 10 December’s overall. MS specifically...
Seasonal Stock Setup: Diversified Healthcare Leader Breaking Out
Abbott Labs (ABT) - ABT has been a relative strength Healthcare name the past week after holding its 55 EMA last month. The stock has begun December on a bullish note so ideally waiting for a dip to the 8 ema or retest of monthly value near 130 is optimal for a new...
ETF Sector Relative Strength Corner: Low Beta, High Yield Group Poised for 2022 Breakout
Utilities (XLU) - Defensive Utilities are a corner of the market known for relatively lower volatility and high dividend yields which can be prudent once a stock market correction starts to unfold. Lately the Staples, and Utes have maintained relative strength...
Credit Spread of the Week: Defense Name Basing at Long Term Support
Northrop Grumman (NOC) - NOC is a global Industrial defense stock that outperformed the market last week being up over 1% during a very turbulent time. The name has a lower beta so these more defensive stocks have held up or even rallied as of late during the market...
Metals Leader with Attractive Risk/Reward Back at Key Volume Node
US Steel (X) shares trading in a wide range since March and pulling back recently to the value-low for the eight-month period at $22, a significant volume node and key area of support. Shares are also back at the VPOC from October/November. A bounce has room to $24...
Seasonal Stock Setup: Relative Strength Software Name in High Tight Flag
Ciena Corp (CIEN) - Ciena has been a strong outperformer since gapping higher in early November and breaking to new highs over 60. While many key stocks act sluggish, CIEN is a tech name with a bull flag forming near recent highs. These high tight flag patterns after...
Seasonal Stock Setup: Top Utility Name Offering Safety into Strong December
Nextera Energy (NEE) - Utilities were in focus as the markets saw broad risk off sell side action to start December. NEE actually made new 52 week highs earlier in the session before sell programs in the futures pushed things lower. The utility leader is a top...
Seasonal Stock Setup: Fitness Activewear Name Showing Relative Strength
Lululemon (LULU) - LULU is one of the growth names that have stayed fairly strong relative to other growth stocks in the market as of late. Trending above its 55 day EMA since early October and now testing the 21 EMA on the recent market weakness. During the heavy...