Trade Ideas — $TSLA, $AMC, $ZNGA, $LIFE, $MACK, $OMCL
July 31, 2016
Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue July 25 — July 29 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.
Economic News
Data estimates for next week show the services and manufacturing sectors are expected to have expanded in the month of July. Meanwhile the economy is expected to have added 180,000 jobs this month.
Globally, Brexit consequences remain to be seen but initial burn is already being felt.. With startups signaling interest in leaving the UK and opening shops within the EU
Economic Calendar
Earnings Calendar
Market
July has been an incredible month for the market across the board, with tech leading the way after strong earnings across the sector. Going into August, the markets are at or close to all-time highs. Next week we should see a shift if investor attention from second-quarter earnings reports to economic data. Investors will surely be looking for economic strength to justify the market all-time high breakout.
$TSLA — Tesla Motors Inc.
Tesla Motors, Inc. is expected to report earnings on Wednesday after market close. Based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $-1.15.
Any positive progress on manufacturing capacity increase and a deal to merge with Solar City ($SCTY) could push Tesla significantly higher. From a technical point-of-view, Tesla looks poised to move higher and test the $250–260 resistance area.
Catalyst- ER 08/03/16.
$AMC — AMC Entertainment Holdings Inc.
AMC Entertainment Holdings, Inc. is expected to report earnings on Monday before market open. Based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.29.
From a technical point-of-view, AMC broke out in March from the long downtrend it experienced in 2015, thanks to a strong ER last quarter, which was 28% above consensus. July served another breakout after it has been in a narrow trading range the last breakout. Currently sitting previous resistance with heavy volume.
Catalyst- ER 08/01/16.
$ZNGA — Zynga Inc.
Zynga Inc. is expected to report earnings on Thursday after market close. Based on 4 analysts’ forecasts, the consensus EPS forecast for the quarter is $-0.03.
There is a lot of hype around gaming apps this quarter, with Pokemon Go attracting a lot of attention. Zynga will likely benefit from that positive sentiment, coupled with positive results from the restructuring the company has been going through. Technically ZNGA is trending upwards so any positive news will see this name move higher.
Catalyst- ER 08/04/16.
$LIFE — aTyr Pharma Inc.
aTyr Pharma Inc broke out of a falling wedge last Wednesday and consolidated Thursday, then continued to move higher Friday with heavy volume, closing out the session above an important price level ($3.40). From a technical point-of-view, this looks extremely bullish and we could see $LIFE move towards its next resistance level which is around the $4 area and then towards the 4.05–4.35 trading range.
Catalyst- Technical Setup, 6x average volume
$MACK — Merrimack Pharmaceuticals Inc.
Another symbol based purely on technicals. Technical indicators look strong going into next week, with MACD, RSI and volume showing strong bullish signs. This is ideal for those that enjoy a strong trend reversal. A breakout above $5.90 with strong volume, would confirm the move.
Catalyst- Technical Setup, indicators and volume
$OMCL — Omnicell, Inc.
Omnicell released their earnings results last Thursday. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.06. This caused a 10% gap on Friday, following by a small pullback, closing out the day with 7% gain. Fridays move puts the stock near 52-week high, following a strong bullish trend dating back to April. $40 would be a double top resistance, previously reached during mid-2015. We would expect resistance there and a move above $0 with strong volume would be extremely bullish.
Catalyst- Strong ER last week, breakout on volume
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.
