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It's "Fed Day." So I'm not interested in putting on any trades that might be material affected by any post-fed reaction. But I did find one that is trading in it's own universe, divorced from whatever may or may not come out of Washington.
This is a trade that will be hard for many people. Not hard to execute, just hard to comprehend the why?
Some people will look at the chart and be afraid of a pullback.
Some people will see that it's a $4 stock and say: "no thanks."
It's been a minute since I've bought anything on eBay. But, by the look of the chart, I must be the outlier as it appears there is still good business there and market participants appear to agree.
Here's what my Analysts had to say about $EBAY in a recent 2 to 100 Club report:
eBay is completing a rounding bottom reversal as it reclaims the 38.2% retracement level. This level has acted as resistance multiple times in the past, making it a great place to define our risk. If this breakout sticks, the primary trend is higher, and we want to be long against the 53 level.
On a relative basis, the stock is working its way higher out of a bearish-to-bullish reversal pattern versus its peers. If the reversal pattern is completed on absolute terms, we expect the stock to outperform its peers over longer timeframes.
We want to buy EBAY above 53, with a target of 64 over the coming 2-4 months.
Consumer Discretionary stocks are on our radar. And for today's trade, we're going abroad and finding a stock that has both a great setup and is also starting to become a fashion "story" here in the U.S.
Just about anyone I've talked to about sneakers recently has mentioned this brand. It is quickly becoming a favorite. I don't currently own a pair, but if this trade pays, then perhaps I'll go buy a pair with my profits :)
As I mentioned in yesterday's Options Jam Session, the stock market is currently sending mixed signals and it has me open to the idea of adding some short exposure to my portfolio to balance the risks to my open long positions.
So I'm on the hunt for weak stocks that are showing signs of losing significant support levels.
If the way Nvidia is trading is an indication that the semiconductors run is far from over, then we have to believe some additional names down the cap scale will attempt to play catchup.
One of those names is Advanced Micro Devices.
Check out the ground that $AMD has to cover to get back to all-time highs:
My portfolio could benefit from some directional diversification right now. As such, I had my eye on a bearish bet this morning to help balance out my mostly directionally long exposure.
And one name that I and our analysts discussed in our meeting yesterday appears to be hanging on the precipice of a potentially large fall. The company will be announcing earnings on July 4th (who does that?) and I think that might be the final nail in the coffin to send this stock lower (if not sooner).
Last week in Sonoma, we uncovered a bunch of potential trades that are setting up in a variety of sectors. But one of them is sending a glaring signal that it is ready for us to get involved right now, so let's not waste any time.
As this bull market shows signs of resuming its march higher, we're setting our sights abroad because U.S. stocks don't have a monopoly on great setups. There are some great companies overseas that trade here in the U.S. that are also setting up for great stock rallies.
I mean, it's right there in the name. This company makes no bones about what they do. And I'm into it. Especially when I'm looking for a leveraged play into the metals sector for a potentially big move.
Buying here might not be for the feignt of heart, but if you love gap-no-go patterns with a long time horizon to play out, this might be the golden ticket.
