WFM-Whole Foods Market-AMZN Deal | Stocks to Trade 6-19-17

WFM-Whole Foods Market

WFM-Whole Foods Market

Whole Foods is currently trading above the price Amazon will pay for it (WFM, AMZN)

Amazon is buying Whole Foods for $42 a share in cash. So why is Whole Foods trading at more than $43 a share?

After a brief trading halt, shares of Whole Foods jumped about 27.5% to $42 on Friday. This matches the price per share Amazon said it will pay for the company. Theoretically, this means Whole Foods is currently worth $42 a share. But once leveling off at $42, shares of Whole Foods began to creep higher, and are currently above $43.

The move in Whole Foods suggests that some traders are willing to bet that it’ll be sold for a higher price, potentially the product of a bidding war if other retailers step into the fray. Speculation on potential Whole Foods buyers has circulated ever since Jana Partners, an activist investor that was encouraging a shake-up at the company, bought in.

Will Walmart Make an Offer for Whole Foods?

One analyst from Barclay believes the bidding for Whole Foods Market Inc. (NASDAQ: WFM) may not be over. While it and Inc. (NASDAQ: AMZN) have a “definitive deal” at $42 a share, the Whole Foods board may have a fiduciary obligation to look at better M&A transactions.

If so, the logical buyer would be Wal-Mart Stores Inc. (NYSE: WMT), the company the Whole Foods deal is meant to challenge.

3 Intriguing Ways Can Profit From Buying Whole Foods (NASDAQ:AMZN) has been flirting with retail concepts that blur the line between e-commerce and bricks-and-mortar, and on Friday, the company made a huge bet that it can further reshape retail by acquiring Whole Foods Market (NASDAQ:WFM) for $13.7 billion.

While there are a lot of synergies associated with this deal (think supply chain), here are three less evident ways this acquisition could pay off for the Internet giant.

WFM-Whole Foods Market Chart 6-19-17

WFM-Whole Foods Market Chart 6-19-17

Trading Plan Components: Minimum Requirements

  1. Trading Concept: Defining Your Edge
  2. Objectives
  3. Trading System
  4. Money Management parameters
  5. Trade review
  6. Mindset

Outline Your Trading Plan Concept: Decisions for Your Strategy

  • What is the philosophy/strategy/catalyst behind your trading ideas?
  • Technical Analysis? News Driven? Long only? Momentum? Scalping? Intra day position?
  • How active will you be? (Day trade or swing trade)
  • What is your time frame for holding trades?
  • How do you identify when your edge is no longer offering a sufficient risk/reward?
  • How do you know when your edge is no longer valid?

Potential Trading Plan Concepts

  • “Old-school” trend lines (yes they still work!)
  • Moving averages:

Read More == >

On the Tape Today | 6-19-17

BABA-Alibaba Chart 6-19-17

BABA-Alibaba Chart 6-19-17

BABA-Alibaba consolidated a monster bullish gap for 7 days. Crafting a game plan today for a new swing trade long. The stock price is trading higher pre-market so we want to be smart with our entry, which means a breakout of the first 30 minutes of trading if you're making an entry as a day trader. If you're swing trading a $136.75 entry is your trigger. Looking at a profit target @ $145. Stop loss on a close below $134.


SPY ETF 60 Minute Chart 6-19-17

SPY ETF 60 Minute Chart 6-19-17

Trading the SPY ETF

SPY traded back into the tight range and the created a deceiving daily candlestick.

Most of the day remained in a consolidation with buying into the close. If you notice on this 60 minute chart the stock price has made consecutive lower highs. Today’s higher opening (7:30 am EDT) sets up an interesting game plan.

If buyers hold the bid, you have a decent trade to the top of the recent trading range. This setup also allows you to hold you winning longs longer. Squeeze extra P&L out of the trades. The trade in the SPY is obvious, but a higher opening limits the profit potential so make your trade management decisions stock specific because of the SPY resistance.

In other words, if your stock has room to go, but the SPY is near resistance, trade your stock not the market. If the sellers come back and we are able to draw a clean down trend line, the picture gets fuzzy again and you should shift to your stocks with relative weakness coming into the day.

Stock Market Today: 

stocks performance 6-19-17

stocks performance 6-19-17 by

Stocks to Trade | Monday Edition 6-19-17


Bullish Momentum: OXY, OKE, FAST, JWN

Bearish Momentum: wba, sm, rspp


Bullish Order Flow: CELG, DE, CAT, PM, AET, TSO, UNH, MCD, BA, ACN, AGN, AMG, TSLA

Bearish Order Flow: dltr, rspp, dks, fl, rost, tsco, slca, clr, hes, hal, dvn, slb, apc, trgp

Double Normal Volume: TGT, BABA, COST, DG, AMZN, DLTR, EA, HD, CELG, BA, FL, SPG, LRCX

Inside Days: msft, v, mat, pypl, atvi, hs, schw, myl, aig, apc, adm, jnp, ctrp, unh, rost, cc, xlnx, dfs, amtd, bidu, ddd, pcln

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