Trade of the Week
Seasonal Stock Setup: Healthcare Leader Builds Bull Wedge into December
UnitedHealth (UNH) - UNH is part of the Healthcare sector that tends to offer defensiveness when the broad market turns sluggish. The XLV healthcare ETF has been up 14 of the last 20 years in December overall. UNH itself is up 16 of the last 20 Decembers for an...
ETF Sector Relative Strength Corner: Value Sector Offering Safety Into Year End
Vanguard Value (VTV) - As the market sees some sell side action and defensiveness to end November, potential opportunities with rotations into value related stocks are worth watching. The VTV is the Vanguard ETF for Value stocks which are defined as more stable and...
Top Media Play Showing Relative Strength
Netflix (NFLX) shares pulling back to the top of monthly value and bouncing back above its 8- and 21-EMA last week with shares showing overall relative strength. NFLX has been in a strong trend and a breakout move back above $700 has room to run with a short-term...
Credit Spread of the Week: E-commerce Growth Name Back to Long Term Support
Sea Limited (SE) - SE has corrected back to its 200 day EMA the past few weeks since its earnings report was sold. The stock saw some rotation with many of the other high growth tech names seeing pressure into mid November. SE closed green during Friday’s heavy...
Seasonal Stock Setup: Pharma Stock Near Highs with Strong Year End Seasonality
Eli Lilly (LLY) - The Healthcare sector can show some stronger defensiveness when the market starts to weaken so looking at potential rotation into year end makes sense. LLY has trended well historically in November, December, and January. December has been higher 8...
Seasonal Stock Setup: Consumer Financial Services Stock Ready to Launch
Synchrony Financial (SYF) - The financial sector is seeing some bullish rotation on the back of higher yields and into its strong end of Q4 seasonality this points to further upside. Synchrony is a strong bank and financial services company that has been public for...
Seasonal Stock Setup: Sweet Staples Stock Coiling in Weekly Flag
Hershey Company (HSY) - The Hershey company is building a strong weekly flag pattern in a squeeze on top of its bullish 8/21/34 stacked EMA’s. Seasonally the sweets and chocolate company sees a bull bias in November and December, being up 7 of the last 10 years....
ETF Sector Relative Strength Corner: Real Estate Showing Bullish Pennant Near Highs
iShares Real Estate Trust (IYR) The IYR is one of the more popular actively traded Real Estate ETFs and trades more volume and options than XLRE. The group is up +28% year to date and showing excellent relative strength since the start of Q4. It has spent this month...
Credit Spread of the Week: Relative Strength Gaming Entertainment Stock at Support
Caesar’s (CZR) - CZR has been one of the few gaming and casino stocks that have held up above its 200 day moving average this year and is a best in class name compared to peers with higher risks. The $20B casino is still up +29% YTD while others languish. CZR peaked...
Calls Attractive in Restaurant Operator Back at Key Support
Texas Roadhouse (TXRH) shares putting in a big reversal candle on Friday right off the lower value area for the month and setting up a nice risk/reward for a move higher in a name with sizable bullish open interest. TXRH rallied strong in 2020 and has pulled back from...