Trade Ideas — $ACN, $ABG, $XOP, $CMI, $SPY, $NVDA
September 18, 2016
Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue September 19— September 23 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.
In the US, industrial production, retail sales, and inflation weighed on Q3 GDP rebound expectations as all three slumped despite hopes for increases.
Globally, Chinese data surprised with some call for a soft landing in their economy. The U.K. economy is weathering the Brexit with strong retail sales and unemployment holding steady. Eurozone industrial production stayed soft.
The market has been volatile since the Fed last gave its insights into possibly not raising the key interest rate. The Dow Jones shows its volatility last week in the below chart.
Last week, Utilities and Healthcare sectors gained while Energy and Financials fell. $GLD (gold) is at its $124 support and has been trading sideways since late July trading in the $124 to $130 range. $USO (oil) is falling and could go to the $9.25 support area. $UNG (natural gas) is trading it its $9 resistance area.
$ACN — Accenture plc
$ACN was tracking well late August before falling as it likes to do to support in September. The $109 area looks to be support and its next ER is scheduled for 9/29/16.
Catalyst — Technical trade near support
Trade — BUY $115.00 October 21, 2016 Calls
$ABG — Asbury Automotive Group, Inc.
$ABG is an undervalued stock. Auto stocks aren’t shiny but this one has $6.4 billion in annual sales with a $1.4 billion market cap only trading at an 8 P/E. Last week, the ticker bounced on support in the $52 area. Watch the $56 resistance this week before trading Calls in the short-term.
Catalyst — Undervalued
Trade — BUY $55.00 October 21, 2016 Calls
$CMI — Cummins Inc.
$CMI has been uptrending well in 2016. Last week it had a short-term uptrend to its resistance area of $120. Watch trading this week for resistance hold or breach. Could be an opportunity for lower priced Calls if falls to $116 support area.
Catalyst — Technical trade
Trade — BUY $125.00 October 21, 2016 Calls
$XOP — SPDR S&P Gas Exploration & Production ETF
$XOP has been falling since September start. Chart analysis shows the ticker oversold. Conservative option traders will want to wait for support to develop, with the next support looking to be the $35 area. Call volume in the 10/21/16 expy has been increasing.
Catalyst — Technical trade
Trade — BUY $37.00 October 21, 2016 Calls
$SPY — SPDR S&P 500 ETF Trust
Despite the doom and gloom news and social media posts of the next market fall $SPY has been holding at the $212.50 support area for a few days. CCI has been in the deep oversold area and was recovering to 0 last week.
Catalyst — Technical trade
Trade — BUY $214.00 September 23, 2016 Calls
$NVDA — NVIDIA Corporation
$NVDA has been uptrending well in 2016. It has beat ER expectations the past eight quarters. The stock traded in a sideways price channel through August after its late test ER beat and gap up. In September the gap was filled with a downtrend. Last week the ticker blazed up to its $63 resistance area. Watch this resistance this week for a possible lower Call option entry but Call volume has been in the rise last week.
Catalyst — Call volume
Trade — BUY $63.00 September 23, 2016 Calls. $65.00 October 21, 2016 Calls for more conservative option traders
Happy trading!
Disclaimer
This is not an investment advisory, and should not be used to make investment decisions. Information in All Things Stocks is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
