December 4, 2016

Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue December 5— December 9 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.

Market

The market finally lost its Trump effect last week a downtrending market overall after all-time highs. December is traditionally a down month due to tax loss trades for the calendar year end.

My favorite ETFs:

$SPY — It’s too early to call a downtrend continuation for the coming week. The CMF indicator still shows some money flow strength desire the downtrend last week. MACD and ADX/DMI are at crossroads for this week. Those who traded Puts on suggestion made nice gains.

$USO — OPEC agreed to cut oil production for 2017 and that set a two day rally off. Congrats to anyone who traded Calls in anticipation of an agreement. However, the tough $11.50 area resistance is back for the fourth time in 6 months so let’s see if it can be breached.

$UNG — Natural has looked to be peaking in overbought territory last week. Those who traded Calls to mid week as suggested made nice gains. The $9 resistance hasn’t been tested yet and it’s too early to call a downtrend yet as the cold winter begins to set in.

$GLD — With equities looking to let off some steam to profit taking gold seekers may step in this week to get some oversold gold. $GLD appears to be trying to make support around $110 but conservative traders may want to wait for the strong $100 support area.

Earnings Calendar

Earnings season is drawing to a close so finding big cap targets before ER will be tough through the holidays.

$LULU — Lululemon Athletics Inc.

$LULU is set to have its ER 12/7/16. The chart is showing the strong $54 support approaching just in time for ER. Puts before ER may be gainers while an ER beat would couple nicely for a technical bounce.

Catalyst — Pre/Post ER Trade.

Trade — BUY $55.00 December 9, 2016 Puts. If ER beat BUY $56.00 December 9, 2016 Calls.

$YHOO — Yahoo! Inc.

Analysts are discussing the Verizon deal to acquire $YHOO this weekend as very possible. The chart analysis shows a bounce off the $39.50 support as well.

Catalyst — Acquisition news and technical trade.

Trade — BUY $40.00 December 9, 2016 Calls.

$AZO — AutoZone, Inc.

$AZO is testing the $780 support area. Chart analysis shows my favorite indicators in limbo waiting for trend prediction. Luckily $AZO is scheduled for its ER 12/8/16 to assist with trend direction. Monthly options 12/16 should offer enough time to see if the $820 resistance can be tested should an ER beat occur.

Catalyst — Post ER trade.

Trade — BUY $830.00 December 16, 2016 Calls.

$FDX — FedEx Corporation

We talked about $FDX a few weeks ago as a Call option trade suggestion. The shipping industry tickers have been on fire as revenues are expected to increase nicely through the holidays season.

Catalyst — Technical trade.

Trade — BUY $197.50 December 16, 2016 Calls.

$P — Pandora Media, Inc.

$P is in the news as Sirius entertains acquiring $P on 12/2/16. Analysts are in favor of a buyout as favorable for $P.

Catalyst — Acquisition news.

Trade — BUY $13.50 December 9, 2016 Calls.

$WDC — Western Digital Corporation

$WDC revenue has been growing quickly the past couple of years. It’s also showing signs of heading to profitability for the year despite prior year losses. $WDC stock valuation has been steadily climbing since early November and chart analysis shows a strong uptrend.

Catalyst — Technical trade.

Trade — BUY $64.00 December 9, 2016 Calls.

Happy trading!



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