Trade Ideas — $AMGN, $CGNX, $TSLA, $GRPN, $NFLX, $RIC
May 01, 2016
Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue May 02–06, where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.
Economic News
Following a barrage of flimsy company earnings, including Apple’s first review drop in 13 years, investors will be leaning heavily towards Aprils jobs data for any signs of a hope or further weakening in the second quarter.
Unlike recent months, where weak jobs numbers were applaud and taken as a sign that Federal Reserve will stave off any interest rate hike, investors are now itching for better-than-expected results to indicate that the economy is still on track for a recovery.
Economic Calendar
US non-farm payrolls , unemployment and wages data are all due Friday May 6. It is expected that the economy to have added 200,000 jobs in April, and unemployment to remain unchanged at 5%, with a wage increase of 0.3%.
Earnings Calendar
Earning season is slowly coming to an end, but with results from some heavy weights still outstanding. Most notably from American International Group In ($AIG), Pfizer Inc. ($PFE), Tesla Motors Inc ($TSLA), Sprint Corp ($S) and CBS Corporation ($CBS) amongst others.
Markets
Last week markets were mostly stable until end of the week where they retraced somewhat, inline with earnings that were below expectations.
Going into next week, its expected that the market will continue to retrace with earnings continuing to put pressure to the downside.
Trade Ideas
Given the negative sentiment and the expected weakness for this coming week, we are mainly looking for short opportunities.
$AMGN — Amgen Inc.
We are fairly bearish on the Pharma sector going into next week and have looked for short opportunities in this sector. Amgen has hit the $162–164 resistance reveral times previously in after which it retraced down to the $140 level. Since then, it has worked its way back up. We expect it to retrace further, given the strong volume on Friday’s bearish candle.
$CGNX — Cognex Corporation
Cognex is setting up for a bearish move, having broken short term support at $37–38. We are looking for volume to validate this short setup.
$TSLA — Tesla Motors Inc.
There has been alot of positive momentum around Tesla, with the introduction of the Model 3 and unprecedented pre-order numbers. Though last week Tesla has approached the bottom of the bullish triangle and looks like it wants to go lower. Watch for a break below $240 with volume.
$GRPN — Groupon, Inc.
Following the unexpected earnings beat, Groupon has been taking a beating of its own. It gapped down and we expected continued weakness going into next week.
$NFLX — Netflix Inc.
In weak markets, we tend to look for hypervaluations that are setup for a correction. We think Netflix is going to see more negative pressure to the downside. We would like to see a retest of $80–82.
Note: we could see a bounce before more weakness, so we advice waiting until a setup forms.
$RIC — Richmont Mines Inc.
Richmont Mines has been on our radar for a while given its strong move that started beginning of the year. We expect this to continue strong given the strong volume and Fridays bullish candle. Sky is the limit on this one
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.
