Market Summary (continued)
While the indices managed to close positive (for the most part -- RUTX lower), the upside was really nothing by the close. Just more lateral movement over some key support for NASDAQ, RUTX, SP400, SP500 (50 day MA), the 200 day SMA for DJ30 and SOX. In short, nothing to change the status of the market as it tries to find footing at key support to continue the overall uptrend.
Alas, another week of indecisive action other than to hold support by the indices and many leading stocks. That in itself is not bad, and after 2 to 4 weeks of fading off the most recent highs, that is not the bad action many claim it to be, e.g. some saying it is the start of a new bear market. Seriously? Perhaps they are brilliantly prescient, but as for the patterns I see, there is some seriously good stocks in seriously good position. If the bids return at these classic bounce points, some seriously good moves could result.
That is the technical picture: testing important support after a move to new highs for many indices and stocks, still in the upside trend as they test.
Read "The Daily" Entire Weekend Summary
WSM (Williams Sonoma--$61.38; +0.07; optionable): Upscale cooking supply stores
STATUS: Love going to WSM and buying eccentric items that are used perhaps once per year (e.g. my mango pitter). As I have said before, there are some good deals such as the wine glasses we picked up on clearance ahead of last Christmas. Anyway, WSM broke higher in late May with a gap (earnings) and run up to just over a week back. In the market selling it has tested, coming back to the 20 day EMA and working laterally the past week. Nice action, ready to move in as WSM breaks higher on solid volume, holds the move.
Volume: 1.06M Avg Volume: 2.452M
BUY POINT: $62.94 Volume=3M Target=$72.44 Stop=$59.91
POSITION: WSM NOV 16 2018 62.50 C - (53 delta) &/or Stock
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Here's a leader play and our current analysis.
STATUS: HIIQ is testing the 50 day MA, fading the past three weeks as it forms the handle to a 4 month cup with handle base. This base formed after HIIQ rallied in February to early March. Really nifty pattern and HIIQ does not have to run far to make us a nice return on this play. The entry signal is a solid break higher on strong volume that holds the move.
Volume: 255.698K Avg Volume: 341.577K
BUY POINT: $32.66 Volume=450K Target=$38.74 Stop=$30.52
POSITION: HIIQ AUG 17 2018 30.00 C - (68 delta) &/or Stock
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VRSN (Verisign--$137.42; -0.23; optionable): Domain names and more
STATUS: Flag. VRSN still has the monopoly on certain parts of the internet, so we want to move in when the pattern gives an opportunity. As with many 'name' leaders using the recent market weakness to test new highs, VRSN has faded to the 20 day EMA and 38% Fibonacci retracement of the May to mid-June. Nice fade to the near support. The entry signal is a new break upside holding the move, decent volume. Looking for a run near the 127% Fibonacci extension.
Volume: 672.796K Avg Volume: 1.004M
BUY POINT: $138.97 Volume=1.4M Target=$151.38 Stop=$134.95
POSITION: VRSN SEP 21 2018 140.00 C - (48 delta) &/or Stock
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--by the MarketFN STG Team
WFC (Wells Fargo & Company)
Our Success Trading Group will be watching closely for entry points next week on some of our favorite stocks such as Wells Fargo & Company (Ticker: WFC) and Kellogg Company (Ticker: K).
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7 years with 0 losses on our Main Trade Table. In fact, we closed 100% winning trades for the calendar years 2016, 2015, 2013, 2012, 2011, 2010 and 2009 (we still have 1 open position from 2017 (all others were winners) and 1 trade that we opened in 2014 was closed as a losing trade). All of these trades are posted on our Main Trade Table for your review during your free membership trial period.
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HBI - HanesBrands, Inc. is currently trading at $22.02. The August $22.00 Calls (HBI20180818C00022000) are trading at $1.15. That provides a return of about 6% if HBI is above $22.00 on expiration Friday in August.
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The Daily: "The Daily" is a must read for all investors!
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| The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP., or Split Ventures, Ltd. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on the related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. No one associated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites.|
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