November 13, 2016

Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue November 14— November 18 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.

Market

Last week was volatile as expected but what wasn’t expected was a bullish short-term trend should Trump be elected. The 3-day trading after elections was bullish and pushed many tickers into overbought territory.

$SPY is signaling overbought for the first time in months. $USO is signaling bearish but is approaching the $9.50 support. $GLD jumped off a cliff and is signaling strong sell. This week’s trading should be telling for the short-term tempo of these ETFs.

Earnings Calendar

$GRUB — GrubHub Inc.

$GRUB broke the $36 support last week. It’s ER 10/26/16 was a beat but traders reacted by selling due to weak user growth.

Catalyst — After ER.

Trade — BUY $35.00 November 18, 2016 Puts

$HUM — Humana Inc.

$HUM had a big ER beat 11/4/16 right before election. Though I agree Trump’s republican win can spell changes to Obama Care and thus help the healthcare insurers, I think $HUM is very overbought and profit takers will let off some steam in the short-term.

Catalyst — After ER.

Trade — BUY $180.00 November 18, 2016 Puts.

$HD — The Home Depot, Inc.

Last week’s trading ideas included $HD and those who utilized the Calls idea would have made over 100%. This week $HD has its ER and big box retailers have been soaring post-election.

Catalyst — Before ER.

Trade — BUY $130.00 November 18, 2016 Calls.

$LOW — Lowe’s Companies Inc.

Like its competitor $HD $LOW stands to gain from the short-term hype of a Mexico border wall should Trump’s idea become a reality. $LOW also is in a bullish trend coming off a strong downtrend before ER 11/15/16.

Catalyst — Before ER.

Trade — BUY $70.00 November 18, 2016 Calls.

$TGT — Target Corp.

$TGT’s ER, scheduled 11/18/16, is predicted to be a beat and is riding on the retailer industry post-election buzz. $TGT hasn’t been beating its sales last year on a by quarter basis so watch this holidays sentiment.

Catalyst — Before ER.

Trade — BUY $72.00 November 18, 2016 Calls.

$WMT — Wal-Mart Stores Inc.

$WMT is pretty overbought and more so than its competitors stocks. The downward price channel resistance was tested last week and held. $WMT has its ER scheduled for 11/17/16. The company has seen its profits declining in 2016 on a per share basis and this holiday season sales analysis should be telling for this stock’s trend.

Catalyst — Before ER and technical trade.

Trade — BUY $70.00 November 18, 2016 Puts.

Happy trading!



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