Long-Short Idea List: 07-18-19

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

ALB – Albermarle Corp.

• Value stocks have been out of favor for a long-time. ALB has gotten extremely cheap and beaten up.
• With a buy signal close to registering from an oversold condition there is a decent setup for a trade with a tight stop loss.
• Buy at current levels.
• Stop level is $63

GOOG – Alphabet, Inc.

• We previously recommended going long GOOG, then shorting GOOG, and last we suggested going back long again.
• GOOG has gotten oversold and is lagging the rest of the tech market currently. With earnings season approaching there is upside potential for a trade.
• A break above the 50-dma, currently testing, gives GOOG decent upside.
• Buy at current levels as stop loss levels are very close.
• Stop-loss is currently $1100

CRM – Salesforce.com

• We noted last week that CRM has been holding support and consolidating for the last few months.
• With earnings season approaching, an upside surprise could give the position a lift and stop-loss levels are very close.
• CRM broke above the 50-dma last week, which opens up old highs as a target.
• Add a position at current levels.
• Stop loss is set at $150.

INTC – Intel Corp.

• After a brutal beating following last earnings, the semi-conductor space has shown some signs of life.
• With INTC above its 50- and 200-dma there is a potential trade with a tight stop loss.
• While on a sell signal currently, that signal is beginning to reverse.
• Buy 1/2 position at current levels.
• Stop loss is tight at $47.50

CVS – CVS Health Corp.

• We recently added a position in CVS to our portfolio as the buy signal is approaching.
• CVS has now triggered a buy signal so we are re-recommending a long-position for now.
• A break above $60 will give CVS legs to the upside.
• Buy at current levels.
• Stop is set at $50 – honor thy stop.

SHORT CANDIDATES

BLK – Blackrock, Inc.

• BLK is very overbought and at the top of the trading range.
• If the market gets sloppy over the next couple of months we will likely see downside in the shares.
• Short at current levels.
• Target for trade is $410
• Stop-loss is set at $485

CFG – Citizens Financial Group.

• CFG has been in a long-term consolidation pattern.
• With a sell signal approaching and very tight parameters, there is a decent short-setup currently.
• Short on a break below $34
• Target for trade is $28
• Stop loss is $36

GPC – Genuine Parts, Co.

• GPC has been running along its bullish trend line for quite some time.
• Currently on a sell signal, and struggling with support, a break of that trendline will provide a reasonable downside target.
• Short on a break below $101
• Target is $90
• Stop loss is $105

SPG – Simon Property Group

• SPG has been struggling relative to REIT’s as a whole.
• Currently on a fairly major sell signal and sitting on important support, shorting parameters are fairly tight.
• Short on break of support at $160
• Stop is set at $165
• Target for the trade is $140

TIF – Tiffany and Co.

• TIF is flirting with an important sell signal combined with the potential break of a downtrend.
• Sell short on a break of support at $92.50
• Target is $75
• Stop is set at $96