Long-Short Idea List: 09-19-19

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

AMZN – Amazon.com

• If the market is going to move higher into year-end, the AMZN should lead the way particularly as we head into holiday shopping season.
• The trade setup is pretty clean, with AMZN’s sell signal pretty deeply oversold.
• Buy at current levels.
• Stop is $1750

Broadcom, Inc.

• This is a “pair trade” in the semi-conductor space.
• Buy a position on a breakout of the consolidation at $295.
• The short side of the pair is AMD discussed below.
• Stop is $280

AVY – Avery Dennison Corp.

• AVY has been in a pretty tight consolidation for a while. If AVY can breakout above $117.50 we will likely see a move higher.
• AVY is close to a “sell signal” so don’t buy until there is confirmation of a move higher.
• Stop-loss is $112.50

CGC – Canopy Growth Corp.

• I have been getting lot’s of request for a “cannabis” play.
• These stocks are all terrible fundamentally and most of them will likely go away through merger, acquisition, bankruptcy, etc.
• However, from a trading perspective, CGC is very oversold and sitting on support.
• From a trading perspective only, you can buy at current levels with a stop at the recent lows.
• Short-term upside is $32.50 but a move above that level will likely get buyers excited.
• Stop-loss is set at $23.

CHRW – C.H. Robison Worldwide

• Trucking data has been horrendous for so long now that it is likely to improve simply on year-over-year comparisons.
• Buy a position in CHRW at current levels.
• Target for trade is $96
• Stop loss is set at $82.

SHORT CANDIDATES

AMD – Advanced Micro Devices

• AMD is the short-side of the “pair trade” with AVGO above.
• AMD has triggered a “sell signal” and is close to breaking down out of its consolidation.
• Trading parameters are very tight.
• Sell short the position on break of $30.
• Target for trade is $20-22
• Stop-loss is at $32

DEO – Diego, Plc

• DEO just broke its long-term uptrend and is on a sell-signal currently.
• Sell short 1/2 position in DEO on any rally that fails to move above $165.
• Sell short second 1/2 position on a break below $162.50
• Target for trade is $145
• Stop-loss is $167.50

FB – Facebook, Inc.

• FB has been consolidating is a tightening pattern over the last couple of months.
• With a “sell signal” now triggered at a fairly high level, downside risk is fairly decent.
• Sell short FB on a break below $185
• Target for trade is $160
• Stop-loss is set to $190

GE – General Electric Co.

• GE has rallied back to resistance and its “buy signal” is VERY extended and has recently reversed to a “sell signal.”
• Short GE at current levels.
• Stop loss is $10
• Target for trade is $7

HLT – Hilton Worldwide Holdings.

• HLT has also recently registered a “sell signal” and is trading at fairly overbought levels.
• Sell Short HLT on a break below $90
• Target for trade is $70
• Stop-loss after shorting the position is set at $92.50