Good evening! Interesting day in the market. We had an early sell-off that recovered. I see this as a mere pause in the action before charging higher.
I’m still holding $HD calls. Nothing exciting happened today. Had some time decay. My stop is at $191, so I still have a dollar or so at risk before potentially getting stopped out.
Let’s take a look at some potential plays for tomorrow, my favorites being $AXP, $DIS, and $LVS.
$AXP and $JPM are both breaking out. Personally, I like the $AXP play better than the $JPM play because $AXP has a slightly cleaner chart and more room to run, but both have good potential. I would apply the 5min rule before getting into either of these positions. $AXP Target 1: $102.50 Target 2: $105. $JPM Target 1: $111.06 Target 2: $114.69.
Second Target Push
$FB and $NFLX paused yesterday, but had better days today, particularly $NFLX. I really like the $NFLX play here assuming it satisfies the 5min rule. My biggest concern with $NFLX is that it’s reporting earnings after market close on 22 January, so there isn’t a lot of time to let this trade breath. In either event, assuming I got into the trade, I would set my stop at the low of today’s candle. $FB Target 2: $193.73 $NFLX Target 2: $222.24.
Still Trying to Breakout-Out
A number of stocks are still on the cusp of breaking out. I’m keeping an eye on: $IWM, $JNJ, $PYPL and $SBUX. Of all of these, $JNJ is probably my favorite since MACD crossed and is bullish. A potential $10 gain for a $2.5 risk. However, be aware that $JNJ reports earnings on 23 January. I would not get into any of these until the last 5-15 minutes of the day with price solidly above the breakout price.
$LVS is bouncing off of it’s 50EMA. Stochastics are turning up, as is MACD, although MACD has yet to cross. RSI has plenty of room to run. It has a reward of $9 with a risk of just $1.5. Keep in mind that earnings is on 24 January. Targets: 1: $72.24 2: $75.3 3: $79.25
$DIS. This trade could easily go against you based on the technicals. However, if the bullish trend continues as it has over the last few weeks, we could see a bounce with a nice gain. Notice the ascending trend line that has acted as support 3 times in the past. If it holds a fourth time, I’d be looking at a target of $113.16. I’m not sure I would hold beyond that due to overhead resistance, but for a swing trade, there’s extremely low risk. I would get in on the 5minute rule OR, if $DIS gaps up and comes back down to the trend line, I would enter a small position with a tight stop. I’ll have my eye on this one tomorrow.