Stock Market Indecision | Trading Game Plan | June 3

Stock market indecision has become decisive… 🙂

With a lot of economic numbers out this week it’s clear there are few broad-based commitments being made. Order flow across the board is sporadic.

Day trader or swing trader sometimes patience is the best play. We had a couple of nice trade follow through from yesterdays game plan: YOKU, COST AND TRV.

Stock Market Indecision: Map of the S&P 500

Oil and gas was the only clear bias for the day (industry-wise)

stock market indecision

HUM: Humana

Analyst Sees Humana Deal At $225-$235/Share

Humana Inc (NYSE: HUM)’s third consecutive quarterly earnings miss in April made it vulnerable as a takeover target, an analyst said Monday.

Latest Ratings for HUM DateFirmActionFromTo Jun 2015Cantor FitzgeraldReiteratesBuy Jun 2015Deutsche BankMaintainsHold Jun 2015Leerink SwannMaintainsOutperform

Here’s Why Cantor Raised Price Target For Humana Inc

In a research report released Monday, Cantor analyst Joseph France maintained a Buy rating on Humana Inc (NYSE:HUM) and raised the price target to $230 (from $160), to reflect the managed care group’s revaluation, and HUM’s position as the insurer most focused on Medicare Advantage. The new price target represents a potential upside of nearly 7% from where the stock is currently trading.

France noted, “Dow Jones reported Friday afternoon (5/29/15) that Humana is working with Goldman Sachs regarding a potential sale, and that potential bidders include Aetna Inc. (AET) and Cigna Corporation (CI, NC). The managed care group rallied on this news, with AET closing up 1.36%, CI up 3.65%, Centene Corp. (CNC) up 4.05% and HUM up 20.31%, compared with a 0.63% decline in the S&P 500.

Based on Friday’s closing prices, the average P/E on 2015 earnings estimates in our managed care coverage universe is 22.2x. A 15% premium to the non-Medicaid names would imply upside to $203, a 20% premium would imply $212 and 30% would imply $230.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph France has a total average return of 24.3% and a 82.4% success rate.

Day Trading Game Plan: The SPY

One very clean trade in the SPY for day trading. (arrow below)

One hour pause and inside 15 minute candle (entry trigger) at the open price support.

stock market indecision

Stocks to Trade |Wednesday June 3, 2015

Pete’s Notes:

  • Jamie Dimon became a billionaire today.
  • AAPL has moved into a new trading range.
  • AIG over $60 is an alarm to set

Interesting Chart Lessons:

  • YOKU very clean daily flag yesterday leading to a nice day trade.

yoku chart

Earnings in play today > 1M avg shares:

Bullish Ideas ATR/Volume/Price: YOKU, HLF, GPRO, NFLX, SWKS, GILD, AET, FEYE, LRCX>84, GS, AMZN

Bearish Ideas ATR/Volume/Price: gmcr, kors, apa, wynn, qihu,

Weak Stock Weak Close: cnp, ppc

Strong Stock Weak Close: LPX, SWKS, AET, ADI, LLY, CAG,

Weak Stock Strong Close: fcx, lvs, kors, luv, ual, bby

Strong Stock Strong Close: YOKU, OPK, HLF, M, ETFC, AIG, MA, DOW

20 day Breakdown: grpn

20 Day Breakout: ETFC, M, ZION

2x Normal Volume: ZION, CTRP, ETFC, YOKU, M, KORS, DDR, DD

Watch List Longs: AET, ADM>53, ABT, JPM, GS, WFC, INTU, EBAY, ADBE

Watch List Short: chk, swn, kss, cvx, cop, xom, cost, all, ntap, vz, glw, low

Inside days: INTU,


 

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Leave a Reply 2 comments

Passion4Trading Reply

Hey Pete!

Oil & Gas certainly not the ONLY clear bias yesterday….

Steel stocks and Mining stocks also very clean moves.

Keeping an ETF sector watchlist sorted by Net%ChangeOpen combined with a filter that highlights Relative Volume value helps IMMENSELY determining where Relative Strength/Weakness is COMBINED with what truly is in play (volume behind the move).

    Pete Renzulli Reply

    Hi Lou
    thank you for your comment

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