Rocket Equities & Options 08-31-20
Monday, Aug 31, 2020
New short term equity trade. Buy CGC at the open. The stop will be $15.24.
Canopy growth has been building a nice base of support for June, July, and August. CGC disappointed with earnings on May 29th as they talked about the need to restructure in the year ahead, and traded down from $22 to about $16, and we have been bouncing from about $16 to $18 for the entire summer.
Canopy has solid support at about $16 and has held this level for June, July, and August. We are buying CGC at the open this morning with a stop at $15.24, which is just under its June 19th low. CGC looks to open just below $17. The first target is its high volume high from July 28th at $19.59.
Canopy growth has been building a nice base of support for June, July, and August. CGC disappointed with earnings on May 29th as they talked about the need to restructure in the year ahead, and traded down from $22 to about $16, and we have been bouncing from about $16 to $18 for the entire summer.
Canopy has solid support at about $16 and has held this level for June, July, and August. We are buying CGC at the open this morning with a stop at $15.24, which is just under its June 19th low. CGC looks to open just below $17. The first target is its high volume high from July 28th at $19.59.
VIX rising with rising S&P?
The VIX closed out last week at under 23, yet is trading this morning at $24.27 with the S&P Futures positive by 8 points right now. The VIX has been acting a bit odd over the last few days, as it is showing signs of rising fear in the market, even as S&P Futures continue to rise to new all-time highs.
Disney climbing nicely
Disney continues to trade higher with nice volume on Thursday and Friday.
UBER
Uber has traded from $28.48 to $33.80 over the last 7 trading days, up more than 18% over since Aug. 20th when they won a reprieve for their California legal battle. Uber has been building a nice base since late June - we will be watching closely as it approaches the upper bound of its recent trading range at $34.80 from Aug. 6th.
If Uber breaks above the $35 area it could be well on its way to its high from February at $41.86, and potentially above $53 longer term.
If Uber breaks above the $35 area it could be well on its way to its high from February at $41.86, and potentially above $53 longer term.
STZ
Constellation is up almost 9% since its low on Aug. 7th of $170.05. There are two trend lines towards the bottom of its channel, that it is now trading within. We'd like to see STZ continue to accelerate higher, climbing back within it's higher trend, but the channel is forming nicely and we'll look to conintue the recent run higher.
We are buying CGC on the open for a short term equity trade. STZ owns more than 38% of CGC through its warrants so these 2 stocks can be correlated at times.
We are buying CGC on the open for a short term equity trade. STZ owns more than 38% of CGC through its warrants so these 2 stocks can be correlated at times.
Stocks on the radar this week
Zoom (ZM) reports earnings today after the bell. Right now the market is pricing in a $33 move, or about an 11% move.
CrowdStrike (CRWD) reports earnings Wednesday after the bell.
Broadcom (AVGO) reports earnings Thursday after the bell.
DocuSign (DOCU) reports earnings Thursday after the bell.
CrowdStrike (CRWD) reports earnings Wednesday after the bell.
Broadcom (AVGO) reports earnings Thursday after the bell.
DocuSign (DOCU) reports earnings Thursday after the bell.
Short Term portfolio:
Buy CGC at the open. The stop will be $15.24. CGC is trading at $16.95.
Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $135.54. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $33.80. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $185.37. Stop is $164.05.
Buy CGC at the open. The stop will be $15.24. CGC is trading at $16.95.
Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $135.54. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $33.80. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $185.37. Stop is $164.05.
Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish
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