Long-Short Idea List: 06-20-19

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

BMY – Bristol Meyers

• As stated last week, “This is not a great long-term set up but for a short-term trade there is an opportunity.”
• BMY has registered a short-term buy signal.
• We recommended buying BMY at current levels last week.
• Target is $52
• Hold current positions
• Stop-loss is at recent lows of $45.

ADBE – Adobe Systems, Inc.

• ADBE broke out to all-time highs this week while maintaining its current buy signal.
• While ADBE is overbought on a short-term basis, breakouts are usually bullish for continuing advances.
• Buy 1/2 position at current levels and look for a retest of support to add the second half.
• Stop-loss is set at $270

CMI – Cummins, Inc.

• Despite a slowdown in trucking and hauling, CMI continues to do well.
• CMI maintained its “buy” signal last week and held support.
• Buy 1/2 position on a breakout above $170 and add the second half on a retest of support following the breakout.
• Stop-loss is $160

REG – Regency Realty Corp.

• REG has a lot of catching up to do in the REIT space and the breakout above previous tops may be a sign of a pending advance.
• The “buy signal” remains intact but REG is overbought.
• Buy 1/2 position at current levels and add the second half on a retest of support.
• Stop-loss is set at $66

INCY – Incyte Corp.

• INCY broke out of a short-term consolidation pattern which is promising.
• The “buy” signal remains intact and a break above $80 could see a stronger rise.
• Buy 1/2 position now with a target of $80. Add the second half position on a break above $80.
• Stop loss is $75

SHORT CANDIDATES

AMTD – TD Ameritrade Holding Corp.

• As we noted last week, “AMTD is not looking good. With a sell signal being triggered and the downtrend holding firm, it looks like AMTD is going to break to the downside of this consolidation pattern.”
• That happened this past week and a “sell signal” was triggered.
• Short AMTD on at current levels.
• Stop-loss is set at $54
• Target for trade is $40.

CRM – Salesforce.com

• CRM is hanging on to critical support.
• A break below $150 could see CRM test $125-130 in fairly short-order.
• Short CRM on a break below $150
• Stop-loss is $155
• Target is $120

EA – Electronic Arts

• EA is in a very serious downtrend and there are lot’s of fundamental problems with the company.
• EA is close to triggering a sell signal which will put $70 into focus.
• Short EA at current levels with a stop-loss at $85
• Downside target is $70

GWW – WW Granger, Inc.

• GWW remains on a sell-signal and a major downtrend. The recent rally looks to fail at overhead resistance which provides a decent short-entry.
• Short 1/2 position in GWW at $280
• Stop-loss is $290
• Add second half of the position on a break below $260
• Target for trade is $160-170

EMN – Eastman Chemical Co.

• Last week, we laid out the premise for shorting EMN stating: “On a newly issued sell signal following a brief bounce, more downside is currently likely.”
• The parameters were to “short on a break of previous support at $67.50 with a stop-loss at $75”
• EMN did not hit our target last week, but is now running into resistance but there is upside to $80.
• We will revisit this position again next week.
• No action this week.
• Target for trade is $60