Colfax Corp. stock trades under the ticker CFX & has recently shown technical strength, making it worth taking a closer look at for a short-term trade opportunity.
CFX stock closed at $44.93/share on 4/19/2021, and they just completed a bullish MACD crossover.
CFX Stock Price: $44.93
10 Day Moving-Average: $43.94
50 Day Moving-Average: $44.43
200 Day Moving-Average: $36.57
RSI: 53
With their average RSI & MACD crossover, there appears to be more room for upward growth & momentum, especially given the close proximity of the 10 Day & 50 Day Moving-Averages.
Their volume is relatively close to average recently, with the exception of a couple of higher volume bad days in March 2021.
I’ll be eyeing the $45 strike calls & puts, as $45.43 is the first test point for resistance, which will also account for any potential macro-market conditions that may adversely impact CFX’s growth.
My only concern is that there is a low amount of open interest on these options (45 calls, 35 puts), but their volume has been more active than their open interest recently.
All-in-all there appears to be great opportunities here for a short-term trade, making CFX a name all traders should be keeping an eye on.
Phillips 66 Partners LP stock trades under the ticker PSXP & has recently shown technical strength, making it worth considering for a short-term trade opportunity.
PSXP stock closed for trading at $30.05/share on 4/7/2021, as its MACD formed a bearish crossover.
PSXP Stock Price: $30.05
10 Day Moving-Average: $30.95
50 Day Moving-Average: $28.37
200 Day Moving-Average: $26.50
RSI:49.8
PSXP’s stock has recently slid, putting its price slightly below the 10 Day Moving-Average, but its volume has increased dramatically in the past few days.
From an options perspective, I am looking at the $30 calls & puts, keeping an eye out for the $30.50 & $28.50 levels in price.
Phillips 66 Partners LP stock also offers an 11.65% dividend yield for its common shares, which also may be appealing to longer-term oriented investors.
Overall, PSXP looks to have many advantages for short-term traders & long-term investors alike, and is worth taking a closer look at.
Everi Holdings Inc. stock trades under the ticker EVRI closed at $14.72 on 4/6/2021. EVRI stock has recently shown some signs of technical strength, making it worth taking a closer look at for a short-term trade opportunity.
EVRI just experienced a bullish MACD crossover, and its low-prices have been on a steady uptrend for the last few months.
EVRI Stock Price: $14.72
10 Day Moving-Average: $14.17
50 Day Moving-Average: $14.52
200 Day Moving-Average: $10.48
RSI: 52
With an average RSI reading & their recent MACD crossover, there looks to be some upside potential in the near-term for Everi Holdings Inc.’s stock & options.
EVRI’s $15 strike call options are just about at-the-money, making that level the one I am currently eyeing for both calls & puts.
Selling the $17.50 strike calls that expire May 21 may also be profitable, as to become in-the-money they would have a month and a half to jump 18%+.
All-in-all, there appears to be some great opportunities for traders to take advantage of EVRI stock & options.
Cohu, Inc. stock trades under the ticker COHU & closed at $46.68/share on 3/16/21.
COHU’s stock has recently shown technical strength, with a MACD bullish crossover & their price breaking the 50 Day Moving-Average, making their stock & options appealing to short-term traders.
COHU Stock Price: $46.68
10 Day Moving-Average: $41.57
50 Day Moving-Average: $44.56
200 Day Moving-Average: $27.30
RSI: 58
From an options perspective, I would be focused on the $45 level puts & calls from a long positioning standpoint, while eyeing selling the $50 calls, as they would require a 10% gain before 3/19 to be in-the-money.
The $47.66 level will be interesting to watch how COHU’s price reacts, as if they can pass through there, the $51 will be the next level of resistance, putting the $50 calls in-the-money, which would be possible for the 4/16 expiration date.
Overall, COHU stock & options seem to have a few interesting possibilities for short-term traders.
Southern Co. stock trades under the ticker SO & has recently shown some technical strength, making it worth looking at for a short term trade.
SO stock closed at $59.61 on 3/8/21, after gapping up & crossing it’s 50 Day Moving-Average, while also completing a bullish MACD crossover.
SO Stock Price: $59.61
10 Day Moving-Average: $58.03
50 Day Moving-Average: $59.22
200 Day Moving-Average: $56.16
RSI: 55.6
SO Stock looks ready to move higher, with yesterday’s movement coming off of some of the highest volume their shares have had in months.
If they reach $60, I’ll be keeping an eye on the $60.88 level as in the last quarter there has been resistance around $61.
I’ll be looking at the $59.50 calls & puts with Friday expiration (3/12), as the overall market conditions are a bit ambiguous, with most eyes on tomorrow’s CPI numbers.
Surgalign Holdings, Inc. stock closed at $2.31/share on 2/3/2021, after completing a bullish MACD crossover, jumping nearly 15% on the day.
Surgalign’s ticker is SRGA, and they’re worth examining more from a short-term trade perspective, as this recent momentum looks to carry them a bit further in price.
SRGA Stock Price: $2.31
10 Day Moving-Average: $1.94
50 Day Moving-Average: $2.23
200 Day Moving-Average: $2.39
RSI: 59
With an about average RSI, there still looks to be more room to run for SRGA stock.
SRGA has options, with the $2.50 calls being about at-the-money, and the next highest strike price being $5.
SRGA puts are interesting, as unless you purchase a $2.50 long put, there doesn’t seem to be much opportunity for profit.
Selling any of the puts is currently a risk for assignment, as all of their strike prices are in-the-money, and if you sold a $5 one & made the $303 premium (based on closing prices yesterday), you are still down $197.
Selling the $2.50 strike put will yield profit, but it requires an 8% further gain in the coming two weeks, which may not sustain given overall market shakiness.
Overall though, SRGA stock & options are worth taking a closer look at from a short-term trading perspective.
Snowflake Inc. stock trades under the ticker SNOW & has recently shown technical strength, making it an interesting candidate for a short-term trade.
SNOW stock had a bullish MACD crossover yesterday, while going up 6.63% to close at $300.71.
SNOW Stock Price: $300.71
10 Day Moving-Average: $281.66
50 Day Moving-Average: $308.90
200 Day Moving-Average: N/A
RSI: 54
Yesterday’s volume for SNOW was the third highest level since 2021 began, with the upper wick crossing the 50 Day Moving-Average.
SNOW stock does not have a 200 Day Moving-Average yet, as it is still relatively new.
Snowflake looks to have built some positive momentum, making it a prime candidate for a short-term trade.
Looking at SNOW options, the $307.50 calls & puts look the most appealing from a long perspective as a means of having some insurance against any near-term pullback.
From a selling perspective, selling the $330 calls that expire 2/5 seems like a safe opportunity, with decent open interest (322), and selling the $285 put for the same expiration also offers a decent premium, with about half of the open interest (162).
Overall, Snowflake Inc. stock looks to have a lot of opportunities in the near-term for traders to capitalize on.
Coeur Mining Inc. stock trades under the ticker CDE & closed at $11.14/share on 2/1/2021.
CDE looks to have great short-term potential for traders, with a recent bullish MACD crossover & a gap up that is about to punch the 10 Day Moving-Average through the 50 Day MA bullishly.
CDE Stock Price: $11.14
10 Day Moving-Average: $8.81
50 Day Moving-Average: $8.94
200 Day Moving-Average: $7.20
RSI: 65
Coeur Mining Inc. has also experienced a surge in volume the last three days when compared to the prior 90 day period, showing a higher than average interest in their stock.
Given the fact that they gapped up so aggressively yesterday, I would focus on the in-the-money $8 or $9 calls & $11 and $12 puts from a long-perspective.
Overall, it looks like CDE stock still has some room to run & is worth taking a look at for a short-term trade opportunity.
Direxion Daily FTSE China Bear 3x Shares ETF trades under the ticker YANG, and has recently shown technical movement that makes it worth considering for a short-term trade.
YANG closed at $12.76, after climbing 6.69% on 1/29/2021, with a bullish MACD crossover, rising volume & a low RSI.
YANG Share Price: $12.76
10 Day Moving Average: $11.73
50 Day Moving-Average: $15.44
200 Day Moving-Average: $24.47
RSI: 43
YANG’s volume has been increasing recently compared to the prior 90 day’s average, and the recent price crossing the 10 Day Moving-Average shows that there may be some more momentum to continue the growth in price.
Direxion Daily FTSE China Bear 3x Shares ETF has options; I like the $10-11 calls & puts.
Given that this is a 3x levered fund, it may be riskier to sell the puts, whereas owning them will provide more cushion, something that also is worth considering for an ETF that tracks China.
This past year has been an interesting one for watching the performance of stocks & the markets. Between all of the recovery type names, unique ways the TV pundits proposed calculating earnings during the pandemic & market momentum that has been pinned on there being more active participants than usual, there’s been no shortage of entertainment. But something that we haven’t seen much of is people discussing the negative fallout potential that all of this has created.
We all know that stocks take the stairs up, which they’ve been climbing with few faults since March/April 2020, but how far down the elevator ride will be hasn’t really been tested. This may ultimately be more problematic than most folks anticipate the next time around, mainly due to the rapid “recovery” that was made last spring.
A quick dive into the charts of the major indexes shows that the bandaid may be better off being ripped off in the near-term than later.
Breaking Down The Moving Averages Of Major Stock Indexes For 2020 Into 2021
In the last couple of weeks we have seen index levels flirting with their 10 Day Moving-Averages quite a bit, while always managing to break above them slightly & begin to establish new, slightly higher ranges. Something that is particularly troubling about this, is that RSI levels remain on the higher side, while MACD levels are relatively flat.
Treading water is an essential survival skill for maritime activity, but not necessarily the best for your investments & retirement account.
The charts below show how this is bringing major moving averages closer together to levels that may prove to be problematic the next time that even a 10% correction inevitably comes around.
This is the chart for QQQ, tracking the NASDAQ; note the relatively flat MACD levels mentioned before over the last 200 days, minus a few hiccups & the RSI in the last 50 days spending a lot of time cozying up to the 70 level. A 2.23% drop in price level is all that is needed to break below the 10 Day Moving-Average, and the 50 Day Moving-Average is only 4% lower than that.
A 10% correction would push prices below both of these levels in a bearish manner, with the 200 Day Moving-Average 12% below.
Using the SPY chart above, we see that the S&P 500 has even less room for error, with similar RSI & MACD trends as QQQ. SPY’s price level is less than 1% above its 10 Day Moving-Average, with only 3% lower to go to break the 50 Day MA in a bearish manner, and the 200 Day MA 10% below that.
A 10% correction in prices here will leave the 200 Day MA about the same distance below the current price:50 Day MA level.
The Russell 2000 has a bit more breathing room, with the IWM ETF price level being 1.6% above its 10 Day Moving-Average, and the space between the 10:50 Day MAs being an additional ~9%.
Applying a 10% correction would breach the 50 Day MA, but the 200 Day Moving-Average is still another ~19% below that, providing more cushion from a technical perspective.
Then we have the Dow Jones Industrial Average, who seems to have it the worst (although also the smallest sample size by components).
With its price level just .11% above the 10 Day MA, the 50 Day MA is another 2.7% below that & the 200 Day MA is only 9% below that level, making a 10% correction a much larger issue from a technical standpoint.
As you can see, from a technical perspective we are standing on bambi legs, as a healthy move to the downside will have most of these indexes flirting with breaking the longer-term trend.
Much of this is due to the need to place money somewhere for growth, and a lot of speculative bets being made, primarily on technology & medicine, which will also likely make the difference between QQQ & IWM become much closer to the SPY & DJIA levels shown above.
A Correction Sooner Than Later Will Be Beneficial To Rip The Bandaid Off
I added in the 200 day & 50 day yardsticks above, as it highlights that there is an additional problem posed by the rapidness of the market’s recovery. The recovery speed of last spring for the most part outpaces the performance of the more recent time periods, which is somewhat of a life-ring for the longer-term moving averages shown above.
Using the QQQ ETF again, I added in an additional yardstick at the 150 day ago mark. Note that the 200-150 day ago period QQQ grew by almost 22%, while between 150-50 days it increased another 16%, followed by ~15% growth in the last 50 days. That rapid spring recovery is a major reason why the 200 Day Moving-Average has the spread between the 50 Day MA that is currently enjoys.
Looking at the S&P 500 via SPY, we note the same thing; 12.6% growth in the 200-150 day ago period, followed up by 15% growth in the 150-50 day window & only 8.2% growth in the previous 50 days.
The Russell 2000 IWM ETF has fared the best, with 19% growth in the 200-150 day window, followed with increasing growth, with 22.5% gains in the 150-50 day window, and 24.5% growth in the last 50 days. This is why their 200 Day Moving-Average has shown the best amount of cushion for any pricing pullback out of everything shown as examples here.
The Dow Jones Industrial Average has the worst recovery:recent growth story, to be expected based on our last DJIA chart. With 10% growth in the 200-150 day window being followed by a 13.7% increase in the 150-50 day period, and only 5.4% growth in the last 50 days.
Tying It All Together
All-in-all, if we continue to tread water the way we have been compared to last spring’s recovery growth, this will only make the major moving averages get closer together. This will then make any normal correction become potentially much more dangerous, as the downside movements in price will come much closer to breaking the long-term trend, if they don’t blow right through them.
With this in mind, it is becoming more & more essential for traders & investors to have a hedging strategy in place, and be ready to actively trade during the upcoming downward motion, whenever it ends up happening. It appears that the sooner it takes place the better it will be, as otherwise there will be more obstacles to overcome from a technical perspective.
Perhaps its best if the bandaid is ripped off now, before a cast & sling are required later on down the line…
