Long-Short Idea List: 09-05-19

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

PGR – Progressive Corp.

• While PGR is on a short-term sell signal, it is sitting on important long-term uptrend support. The last violation of that trend support was fully reversed within just a few weeks.
• Given the bullish bias to the stock, and considering there are very tight parameters for a trade, a long position can be added.
• Buy at current levels.
• Stop is $72.50

MMM – 3M Corp.

• MMM has been under a lot of pressure from trade war concerns and a slowing economy. However, much of the downside appears to have been rung out for now.
• Buy a position with a stop at $155.
• Initial target for the trade is $175-180
• The set up for the trade is pretty clear with limited risk and decent reward.

ROK – Rockwell Automation

• ROK is on a very deep oversold “sell signal” and sitting on important support from previous bottoms.
• Previous oversold conditions have lead to decent rallies.
• Buy a position at current levels.
• Stop-loss is very tight at $145
• Target is $165

AMGN – Amgen, Inc.

• AMGN recently broke out to new highs and has triggered a buy signal from fairly low levels. A bit of a pullback is needed to add to holdings.
• Buy a position on a pullback to anywhere between $190 and $200.
• Stop-loss after purchase is set at $185.

ITW – Illinois Tool Works

• ITW is sitting on support and is current working a sell signal. However, the risk./reward parameters suggest a trade made be in the offing.
• Buy a position in ITW at current levels.
• Target for trade is $155-160
• Stop loss is set at $145.

SHORT CANDIDATES

AMP – Ameriprise Financial

• AMP has broken several important supports and triggered a sell signal. With financial vulnerable to rate cuts, look for further declines.
• Sell short the position on break of $125.
• Target for trade is $100
• Stop-loss is at $130

BLK – Blackrock, Inc.

• BLK was recently selected as a short position near the previous highs. The sell-off has been enough to warrant taking profits.
• Close out the short-position if you haven’t already.

NTRS – Northern Trust Cop.

• As noted above, the Fed cutting rates aren’t great for banks.
• Sell short NTRS on a break below $85
• Target for trade is $77.50
• Stop-loss is set to $90

CMI – Cummins, Inc.

• CMI makes diesel engines for long-haul trucks where we are seeing substantially less demand currently.
• CMI is on a sell signal and is not deeply oversold.
• Sell short CMI on any failed rally to $155
• Stop loss following trade setup is $160
• Target for trade is $125

CSCO – CSCO Systems Inc.

• CSCO is running into a good bit of trouble and is sitting on very dangerous support level.
• Short CSCO on a break below $46
• Target for trade is $38
• Stop-loss is set to $48