The Top Blood in the Street Trade to Own

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Let’s start out with a win.
 
Week ago, we recommended the Merck (MRK) stock and the MRK July 19, 2019 77.50 calls, which traded at $2.40 at entry.  At the moment, the calls are up to $4.60.  Let’s take the win here just on the calls.  Hold the stock a bit longer. 
 
Let’s also exit the second half of the Pfizer (PFE) September 20, 2019 40 calls – picked up at $1.55.  The calls are
now up to $3 for a great win.  Hold the PFE stock.
 
As the trade war intensifies, it’s brought down some of the top stocks on the market.
 
But in our opinion, now is the time we want to buy when the blood is running in the streets, as Baron Rothschild would say.
 
One of the top stocks down far too much, far too soon is Intel.
 
Intel has been severely beaten down to a 52-week low on trade war concerns.  After an incredible pullback to $44.46, Intel is severely oversold at triple bottom support. It’s also oversold at its lower Bollinger Band (2,20) with RSI, MACD, and Williams’ %R all telling us this sell-off may be overdone.  We believe that the trade war fears are priced in.  
 
Helping, the U.S. has granted temporary exceptions to an export blacklist against Huawei Technologies Co., giving some suppliers and customers of China’s telecom giant a 90-day reprieve from tough trade penalties, according to The Wall Street Journal.
 
There are two ways to trade Intel at the moment.
 
One is to buy the INTC stock.  The other is to buy to open the INTC September 20, 2019 44 and/or 45 calls at market prices.

Here’s what we still hold, long-term:

Disney (DIS) July 19, 2019 130 put – $2.65

Hold, as the stock begins to pull back.  The put last traded at $3.

Merck (MRK) stock – $76.75

MRK July 19, 2019 77.50 calls – $2.40 – exiting second half today

MRK now trades at $81.17 and remains on hold.  The calls are now up to $4.60.  Exit.

Pfizer (PFE) stock – $39.92

PFE September 20, 2019 40 calls — $1.55 – exiting second half today

PFE now trades at $41.95 an remains on hold.  Exit the calls.

Devon Energy (DVN) stock – $32.93

DVN July 19, 2019 33 calls – $2.55

DVN now trades at $27 and remains on hold.

Aerojet Rocketdyne Holdings (AJRD) – $34.52

We have a near-term price target of $40.  It last traded at $37.40.

Coca-Cola (KO) stock – $44.96

KO pushed higher to $49.61.  Hold.

iPath S&P 500 VIX Short-Term Futures (VXX) — $42.80

VXX now trades at $28.42.  Hold.

New Age Beverage (NBEV) — $6.76

We have a near-term target of $10.  It last traded at $5.44 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 $2.82. WIFI is now at $20.80.  ZAYO now trades at $32.62.  Hold all.

Kroger (KR) stock – $29.75

KR last traded at $23.80.  We have a $35 price target, near-term.

CoreCivic (CXW) stock – $25.25

The GEO Group (GEO) stock – $25.32

CXW is now trading at $22.33. GEO is now up to $22.10.

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 benefiting from further from U.S. approval across the country, Canadian approval on 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 $33.44.

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