As bad as things may appear in the markets, the fear is a bit overdone.
Relative Strength (RSI) is at its 30-line. The Dow Jones is at its lower Bollinger Band (2,20). MACD is as low as zit was in April 2018 before a big rebound. Williams’ %R is oversold at its 80-line. Before long, we believe the market will push higher.
The Dow Jones is also staying above its 200-day moving average, which is good to see.
So, what we want to do is protect some wins on our volatility positions.
The other day, we recommended the following and exited half of each. Now, we are recommending that you sell the second half of each for more wins.
- Velocity Shares Daily 2x VIX Short-Term ETN (TVIX) – $30
- iPath S&P 500 VIX Short-Term Futures (VXX) — $28.75
- ProShares Ultra VIX Short-Term Futures (UVXY) at $42.05
At the moment, the TVIX trades at $41.82. Take it. The VXX trades at $34.56. Sell this one, too. Also, take a win on UVXY, which last traded at $53.40.
Those aren’t bad returns at all.
If you have a chance, we’d love to hear how you did with these three. And, should you have any questions, comments, or something new you’d like to see, please feel free to let us know.
We really do like hearing from you. Thanks in advance.
Square Inc. (SQ) stock – $74.58
SQ November 16, 2018 75 calls – $5.65
Shortly after the SQ recommendation, the stock began to rocket higher. Hold. It last traded at $75.72. We have a target of $85 on the stock.
New Age Beverage (NBEV) — $6.76
We have a near-term target of $10. It last traded at $4.75 a share. Hold.
Ceragon Networks (CRNT) – $3.90
Boingo Wireless (WIFI) – $32.04
Zayo Group (ZAYO) — $34.42
All are long-term holds as the 5G revolution just begins to pick up momentum. CRNT now traded at $3.74. WIFI is now at $32.80. ZAYO is up to $31.80
Kroger (KR) stock – $29.75
KR November 16, 2018 31 calls – 60 cents
KR last traded at $28. Give it some patience. We have a $35 price target, near-term.
Electronic Arts (EA) stock –$114.40
EA October 19, 2018 115 calls –$2.90 – exited half
EA November 16, 2018 120 calls– $3.45
EA November 16, 2018 120 calls (reiterated buy) – $5.85
EA November 16, 2018 125 calls — $3.55
While the stock has pulled back slightly, we are holding all positions. We have a $127 target.
Nike Inc. (NKE) — $82.35
NKE January 18, 2019 85 calls — $3.85
Even on the pullback, hold. We have plenty of time on these calls.
1-800-FLOWERS.com (FLWS) stock — $11.75
It last traded at $10.77. We have a $14.25 target.
Six Flags Entertainment (SIX) — $66.25
SIX last traded at $66.13. and remains on hold.
Twitter (TWTR) stock — $31.90
Hold the stock. It now sits at $29.18.
CoreCivic (CXW) stock – $25.25
The GEO Group (GEO) stock – $25.32
As long as immigration remains a hot issue, we’ll hold these two stocks. CXW is now trading at $23.40. GEO is now up to $24.42.
Glu Mobile (GLUU) stock — $6.55
GLUU now trades at $6 and remains a long-term hold with a target of $10.
Parsley Energy (PE) stock – $28.05
PE last traded at $27.71 with a new target of $35
Nucor Corporation (NUE) — $66
NUE trades at $59.18 and remains a hold with a price target of $68, near-term.
Skechers USA Inc. (SKX) — $29.25
We’re holding the SKX positions with a near-term target of $35. SKX last traded at $28.25.
ETFMG Alternative Harvest ETF (MJ) — $32.30 – exited half
Kush Bottles (KSHB) — $7.85
MedMen Enterprises (MMNFF) — $4.30
Canopy Growth (CGC) — $51.55
Marijuana stocks are will benefit further from U.S. approval across the country, Canadian approval by October 18, 2018, and corporate interest in marijuana stocks, as we’ve seen recently.
Pro Shares Ultra Short S&P 500 (SDS) — $45.15
This remains a hedge against the long positions. It’s now at $36.81.