💡Trade Ideas — $FNSR, $RAD, $GME, $AMGN, $PII, $DSW
March 12, 2017
Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue March 13 — March 17 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.
Last week US equities were down overall but Friday, 3/10/17, trading showed bullish signs. The Fed is estimated to raise the key rate after strong economic indicators of economic expansion and a strong jobs report Friday.
$SPY — This high option volume ETF for top NASDAQ tickers showed support and bullishness in last Friday’s trading. CMF remains strong and ADX’s DMI is positive for the past couple of months.
$USO — After trading sideways since December the oil inventory report showed levels higher than expected. This oil ETF made a trend determination- downward.
$XLF — This high option volume financial sector ETF has been uptrending since the presidential elections. The next leg up appears to be upon us.
$FNSR — Finisar Corp.
$FNSR posted an ER miss 3/9/17 and the stock dived 20%. I think this is a big overreaction. The company’s profit has been higher than ever the past two quarters and the soft outlook is just heads up that the exponential growth won’t be so exponential soon.
Trade- BUY $28.00 April 21, 2017 Calls.
$RAD — Rite Aid Corporation
$RAD has fallen 45% since talks of acquisition by competing pharmacy companies started. $RAD needs to be reorganized or purchased by a company that can fix its profit and sales issues. The company is laden with debt and has had three big ER misses. Still, the ticker is undervalued at the current stock valuation with $32b annual sales and a $5b market cap.
Catalyst- Acquisition talks
Trade- BUY $5.00 April 21, 2017 Calls
$GME — GameStop Corp.
Chart analysis shows large volume spikes at $GME stock price dips. This dip and buy scenario gives me hope for the continued $GME uptrend. $GME ER is scheduled for 3/23/17 and has a history of beats the past four quarters.
Trade- BUY $25.00 March 17, 2017 Calls or $26.00 April 21, 2017 Calls
$AMGN — Amgen Inc.
The Biotech industry has been on a tear since the presidential elections. Pharmaceutical drug prices aren’t under as much scrutiny with a Republican president, and biotech company stocks were pretty undervalued going into 2016 holidays. Technical analysis shows strong buy signals still.
Catalyst- Technical analysis
Trade- BUY $185.00 March 17, 2017 Calls; $190 and $195 April 21, 2017 Calls are seeing large option volume as well.
$PII — Polaris Industries Inc.
$PII chart analysis shows the $90.50 area as a strong resistance the past six months. $PII tested this resistance 3/10/17 and ended with a bearish candle. Competitor analysis shows $PII second in its industry with a fairly low PE compared to its competitors. It’s ER is scheduled for 4/23/17 so there’s plenty of time for a dip and dip scenario between $83.50 and $90.50z Watch for downtrend confirmation in 3/13 and 3/14/17 trading.
Catalyst- Technical analysis
Trade- BUY $90.00 March 17, 2017 Puts
$DSW — DSW Inc.
As earnings season comes to an end for the past quarter $DSW remains one of the last big caps to report. ER is scheduled 3/14/17. Technical analysis shows the ticker trading at its strong $20.25 support as well.
Catalyst- Pre-ER or post-ER
Trade- BUY $20.00 March 17, 2017 Calls
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.