After closing out a lot of my positions over the past two days, we are looking for new positions for the Freaky Fast Profits Portfolio. I found 8 fantastic setups in some of the best, leading companies in the world. Let’s look at them.
EBAY is rated a 99 at Investor’s Business Daily, and is rated the #1 stock in the Retail-Internet group. The chart is nice, also.
We should have support on the hourly chart below, as EBAY has pulled back to the 200-hour moving average and appeared to lift from there. I’d buy this above $57, which would be above the downtrend line. You can place a very short stop-loss at around $54.20. Shares work, of course, but I think I’d prefer to buy a September $60 call. You can currently buy that for $127. Then if EBAY rallies to the $60 area I’d sell an earlier expiration $65 call against it.
We’ve got some minor resistance at the $60 level. If it can get through that, my next target is around $80.
We sold CHGG yesterday above $87.70 because we had big gains and it was announcing its earnings after the close. Too much risk. The announcement went well, the stock dropped a bit, but rallied well from a key support zone, and now we may have a great chance to buy this back at a small discount. Look at how Chegg has traded precisely between my two targets (the dotted lines) the last two days.
You could enter this tomorrow with a stop below $80, or wait until it breaks $88 for a less risky trade. Next up after $88 is a profit target of $108. CHGG is also rated a 99 at IBD, and listed first in its industry group.
DXCM sports a 97 rating at IBD and is also 1st in its industry group. We’re basically getting a 2nd chance at the breakout to new highs here in Dexys Midnight Runners.
The stock has re-established itself securely above the old swing highs from back in May, and now you’ve got a stock that has spent even more time building energy to explode. I like this on a rise above today’s highs. This would be a stock purchase.
Zooming forward, let’s talk about ZM. Zoom reports on 8/31, so we’ve got plenty of time to get some real profits in this one before the earnings announcement. Looks to me like there’s a good 20% to be had, if the market holds up. Zoom has a 99 rating and is also 1st in its industry group. I’d buy above $271.50. I’ve got a stop below $250. You can use stock, or another thing I’d consider is the Sep $340 call. If ZOOM gets near that $340 mark before its earnings call, you’ll out-do the quadruples we sold earlier today.
Adobe (ADBE) is buyable above $449. This is one of the best, most consistent stocks in the market. Based on the hourly chart, you can do a very low risk trade with a stop below $435. It should either work right away, or fail pretty quickly. I like that. If I enter this, it will be with stock. ADBE has a 99 rating and is also top in its industry group.
DPZ pulled back about 10% from its recent earnings report and looks like it’s ready to get that back and hopefully more. Dominos has an 88 rating and is listed 2nd in its industry group. We have an entry above a downtrend line, although I’d wait to see an hourly close higher than today’s high to buy it.
You can use stock, but I’d much rather do an out of the money calendar spread. You can buy the Sep $430 call and sell the Aug $430 call for about $285 and you’d have the following profit outlook.
On August 21st you’d have profits if DPZ is anywhere between $400 and $460. You’d have profits of $500 or more if it’s in the area where I expect it to be, from $418 to $442. My stop for this is going to be around $382 if I get in it, which means I’d probably lose about $125-150 if it fails.
NFLX is coming back for more. This is buyable on the open if it hasn’t gapped way up or down. Its got a 98 rating and is also 1st in its industry group. I’m of the firm belief that it’s going to $600 if the market stays relaxed.
Stop is below $490 if you buy the stock.
Last up is HD. The Home Depot has an 85 rating and is also first in its industry group. HD is buyable above 269.20. I see a run towards $300 into earnings on the 18th. The great thing about the despot is that it can move pretty quick if you catch it right, but people don’t think of it as a quick-mover, so the options prices are low. I would just buy the Sep $290 calls for about $210, watch it go up, and then before its earnings announcement take your profits, or sell an Aug $300 call against it. This is another potential quadruple gainer.
That’s all for now! Questions or comments are welcome below.