Trade Ideas — $SBUX, $UA, $CSX, $GS, $YHOO, $ETE

October 9, 2016

Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue October 10— October 14 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.

Economic News

In the US, discussions about the Fed increasing the rate in December continued. ISM manufacturing and no manufacturing indices were up despite concerns of a slowdown last quarter. The employment report came in below estimates but new jobs are being added.

Globally, the Reserve Bank of Australia kept its rate the same at 1.5%. Rumors of the European Central Bank to start slowing its government purchases helped increase bond yields.

Economic Calendar

The stock market was volatile last week with the DOW breaking even for the week. $SPY has been trading relatively flat for months which is characteristic of volatility.

The $SPY 3-month chart is showing a downtrend possible in CCI and ADX/DMI. Oil reached overbought last week with weakness showing in 10/7/16 trading. $USO is showing signs of a die trend developing technically and watch the next couple of days trading. Natural gas has been up this year, and watch $UNG for bullishness this week. Gold looks oversold after letting off some steam the past two weeks. Watch $GLD for a bullish reversal this week.

The YTD sector performance shows Materials, Energy, Technology, Utilities, and Industrials leading. Healthcare and Financials have been down.

$SBUX — Starbucks Corporation

A double bottom pattern completed last Friday, 10/7/16. 10/7 trading was bullish and I expect an uptrend continuation this week. $SBUX ER is expected 10/31/16 and has a history of increasing revenue.

Catalyst — Technical trade.

Trade — BUY $54.00 October 21, 2016 Calls.

$UA — Under Armour, Inc.

$UA is trading around the $38 support area. Analysts rate the stock price at $50–$55. ER is expected 10/25/16 and needs to post revenue increase to defeat the past three quarters funk.

Catalyst — Technical trade.

Trade — BUY $37.50 October 21, 2016 Calls.

$CSX — CSX Corp.

$CSX has been on a tear since mid-September. The company has its ER scheduled 10/13/16 and has a history of beating expectations. The news has analyst discussions about railroads declining in shipments so this might be a quick trade before ER.

Catalyst — Before ER 10/13/16.

Trade — BUY $31.00 October 21, 2016 Calls.

$GS — The Goldman Sachs Group, Inc.

Raise your hand if you know what companies will benefit from the Fed raising the main rate? Yes, banks. $GS jumped last week as the Deutshe Bank roller coaster ride in its favor and helped the banking industry in general. ER is schedule 10/17 and analysts are reporting the bank is in 1st place in making investment deals and is doing well.

Catalyst — Before ER 10/17/16.

Trade — BUY $170.00 October 14, 2016 Calls.

$YHOO — Yahoo! Inc.

$YHOO has been trading in a $42.50-$44.50 range since September start but I wanted to show the overall trend appears to be a downward price channel with support and resistance. Volume has been decreasing the past two weeks. The news reports Verizon’s sought deal may be in jeopardy with reports of cyber hacks on $YHOO. The company isn’t profitable and is overvalued in my opinion.

Catalyst — Technical trade.

Trade — BUY $43.00 October 21, 2016 Puts.

$ETE — Energy Transfer Equity, L.P.

$ETE is trading at $16 support. Natural gas has been uptrending in 2016 and $ETE has followed suit in the mid and long-term. $ETE has a PE of 15 which is one of the lowest among competitors. $37 billion in sales and a $16 billion market cap. Analysts place the stock price at $18-$20. Undervalued in my opinion.

Catalyst — Technical trade.

Trade — BUY $16.00 October 21, 2016 Calls.

Happy trading!


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.