Despite the market maintaining a rather boring posture relative to the past couple of months of trading, there continue to be plenty of actionable trades forming beneath the surface. After sifting through The PPT and some charts, I have prepared a decent list of setups that should remain relevant throughout the month of August. I have both long and short ideas. To keep things interesting, I will start with the short side. Forgive me for being rather brief in my explanations, but I believe a chart says a thousand words.

SHORTS

At the moment, I am really bearish on Healthcare REITs. I think there have been a lot of technical rising wedges that continue to demonstrate the potential for further downside. That is, they all remain weak. Have a look at VTR. I believe they have already announced and digested their earnings report, so that should mitigate any risks associated with the pressure of time.

Ventas, Inc (VTR)

I think a short trigger would be a breach through the 68.00 level. I rarely short the market considering the trend we have been in, but the success of chessNwine’s recent shorts within 12631 has made me reconsider being narrow-minded in a market that permits both long and short ideas. Anyways, we will see how this one pans out. I think the odds are fairly high IF the trigger is hit. The stock may very well consolidate here before ripping higher, as we have seen in bull markets like the one we are in. I like my odds here because the entire sector is pretty weak. I could go through all of the other charts, but they essentially look the same as the one I posted above.

LONGS

Now to the long ideas. I have several, and they aren’t necessarily in the same industry or even sector. These are charts that caught my eye, or The PPT‘s eye for that matter.

PPG Industries (PPG)

I like how price is pushing higher after a pullback from testing all time highs for this name. Some overhead supply may have asserted itself, and now the price is ready to make its real move. I believe earnings have already gone by for this name as well.

PerkinElmer (PKI)

The name looks very coiled here as it is not yet extended. Should it break this downtrend, we may see a powerful move to the upside. Earnings are August 1st after the market closes.

Pitney Bowes Inc (PBI)

Same type setup as PKI. I like it over 15.00. Earnings July 30, but a scalp or daytrade is still possible.

Verizon Communications (VZ)

I am currently long this name from 51.00. I took a position at the open this morning. I believe that there is plenty of upside left in the name. I like the uptick in buy volume. This is the type of breakout I am looking for in PKI and PBI. Earnings have already been reported.

United States Steel Corp (X)

I am currently long this name through options. I believe that they reported another loss after the bell. The after hours trading does not show too much damage, so it should be interesting to see what happens tomorrow. The obvious trigger for the trade would be over today’s high, but I jumped the gun.

Valero Energy Corporation

I sold out of this name today. I was long the stock with calls throughout July. I dumped them today because I think that this has the potential to move sideways for a little longer. With that being said, it will probably rip to the upside tomorrow. I want to buy some common stock should it break the highs of the pattern. My target is the gap above. It also does not hurt to have this in your portfolio throughout the Hurricane season. Earnings have already been reported.

I believe those ideas should shape into something interesting at least into the first half of August. I still see a lot of potential for breakouts, but I will plan on scaling into trades before committing all of my capital prior to the move in the stock.

Meanwhile, I am messing around with some screens inside The PPT. Throughout the week, I will be tracking names that have a high hybrid score change, yet almost no change in price. The objective here is somewhat obvious. I want to see the potential edge that The PPT can provide prior to price making its move. However, I will have to sift through the historical score archives to establish whether or not a hybrid-price-divergence is a good or bad thing in each specific case.

2 Responses to “Trade Ideas”

1. tpain

   July 30, 2013 at 4:16 pm

   Thanks Chess!

2. chessNwine

   July 30, 2013 at 9:19 am

   Good work, TPain.

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