Long-Short Idea List: 06-06-19

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

AMT – American Tower

• Our first long-recommendation for AMT was in January of this year. Since then, the stock has gone parabolic as the “yield chase” has ensued.
• Take profits for now.
• With the buy signal EXTREMELY extended, lower panel, a correction is going to occur at some point or at least a length consolidation as seen in 2017-2018.
• Move stops on all positions to $190

ALE – Allete

• We stated last week that if ALE broke out to new highs positions could be added.
• If you are currently long ALE, hold with a stop at $78.
• If not, you can take on a trading position with the breakout to new highs.
• Stop-loss on new positions is currently $81

APD – Air Products

• We previoulsy recommended a long-position in APD back in January.
• The trade has gotten crazy overbought as APD has gone parabolic.
• Take profits and reduce overall weight to 1/2 position and wait for a correction to add back into it.
• Stop-loss is $200

CVS – CVS Healthcare

• We previously took on a position in CVS but were ultimately stopped out. We like the business model and the fundamental backdrop of the company.
• The trade setup is not yet ideal but the basing process has allowed CVS to get deeply oversold. This provides a reasonable risk/reward point to start accumulating a position.
• Buy 1/2 position at current levels with a very tight stop at $52
• Add second 1/2 on move about $58 that remains for more than a week.
• Stop Loss is set tight at $52

WMT – Walmart

• Last week we discussed adding a position in WMT on a breakout above resistance.
• WMT has continued to push that resistance and looks to be working a breakout at recommended levels.
• Buy above $103.50
• Stop loss is set at $100

SHORT CANDIDATES

GOOG – Alphabet Inc.

• Last week, we recommended taking on a short-position in GOOG.
• The initial target was $1000 but GOOG got in the neighborhood at $1025.
• Close out the position and look for a re-entry on a failed attempt to get above $1100

ALB – Albemarle Corp.

• In January of this year we recommended a short-position on ALB.
• Targets have now been reached and ALB is deeply oversold.
• Close out the position and take profits.

APA – Apache

• In March we recommended a short position in APA given the potential weakness in oil prices.
• Close out short positions and take profits.

AMC – AMC Entertainment Holdings

• In May we recommended a short position in AMC.
• Initial targets have been reached and while AMC is oversold, it has just registered an important sell signal.
• Close out the short position for now.
• Look to re-enter the position on a failed rally to $14.
• Look for a break below $50 to establish the short position.

BT – BT Group

• We last recommended a short-position in BT Group back in April.
• The short has now hit our previous targets and is oversold.
• Close out the short-position and look to re-enter on a failed rally to $14.