Long-Short Idea List: 05-30-19

HOW TO READ THE CHARTS

There are four primary components to each chart:

• The price chart is contained within the shaded area which represents 2-standard deviations above and below the short-term moving average.  
• The Over Bought/Over Sold indicator is in orange at the top.
• The Support/Resistance line (green) is the longer-term moving average which also acts as a trailing stop in many cases.
• The Buy / Sell is triggered when the green line is above the red line (Buy) or vice-versa (Sell).

LONG CANDIDATES

AMD – Advanced Micro Devices

• AMD just bounced off of support and the trade setup is decent with a very tight stop.
• Buy at current levels with an initial target of $32.
• Stop level is $26

ALE – Allete

• We have previously recommended ALE for a long position.
• Currently ALE is overbought but a breakout to new highs would likely see the stock climb higher.
• If you are currently long ALE, hold with a stop at $78.
• If not, look to buy ALE on a breakout to new highs at $83.
• Stop-loss on new positions is currently $81

INTC – Intel Corp.

• This is a speculative trade. INTC has been “beaten down” over the last couple of months and is very oversold.
• The trade setup is tight as INTC is sitting on strong support currently.
• Buy at current levels with a trade target of $48
• Stop-loss is $43

TTWO – Take-Two Interactive

• We previously recommended shorting TTWO which worked out well.
• However, there is now an opportunity to play the other side of the trade.
• TTWO has registered a buy signal and has broken above resistance at the 200-dma..
• Buy at current levels with a target of $120-125
• Stop Loss is set tight at $100

WMT – Walmart

• WMT has rallied nicely from the December lows and earnings have looked good.
• Now back on a buy signal, a break above overhead resistance will provide a tradeable entry point.
• Buy above $103.50
• Stop loss is set at $100

SHORT CANDIDATES

GOOG – Alphabet Inc.

• The long-position we recommended previously failed to mature. GOOG is now setting up for a potential short-side trade.
• Look for a break below the 200-dma to take on a short-position.
• Potential target is $1000 (This would coincide with a larger market correction as well.)
• Stop-loss is set at $1130

GIS – General Mills

• The trade-war, which restarts June 1st, is starting to weigh on tariff sensitive sectors of the market.
• GIS broke through support and has not registered a sell-signal just yet.
• Short 1/2 position at current levels with an initial target of $45
• Keep the stop loss tight for now at $50

HPE – Hewlett Packard

• HPE has broken important support levels and has registered a sell signal while not oversold as of yet.
• Short HPE at current levels with an initial target of $12.50
• Stop loss is tight at $15

USB – US Bancorp

• USB is flirting with important support within a long-term consolidation process.
• Look for a break below $50 to establish the short position.
• Stop is set at $51
• Target for the trade is $47

VIAB – Viacom Inc.

• VIAB recently broke support and is triggering a short-term sell signal.
• Short at current levels with a initial target of $25
• Set stops at $29